News Release
UKMTA Conference on 27th April 2006
UK Money Transmitters Association hosts Conference
"Are Money Transfer Companies and Banks working together to meet the needs of customers in the UK Remittances market?"
The keynote speaker will be Ivan Lewis MP, Economic Secretary to the Treasury, who will face questions on government policy concerning the increasingly important UK Remittances market.
Harriet Harman MP will be speaking about the importance of an efficient remittances market for her constituents, many of whom have family ties with countries in West Africa such as Nigeria, Ghana and Sierra Leone.
The UK Government estimates the size of the remittances market to be £2.3 billion, but flows of funds through informal channels could mean that the actual figure exceeds £4.6 billion per annum.
"The UK remittances market place is not working as efficiently as it should, mainly due to lack of engagement by the UK banks says Conference chairman, Dominic Thorncroft, as a result, the flow of remittance funds to Africa and elsewhere, which maybe intended for development purposes, is not being maximised"
Conference Chairman, Dominic Thorncroft, says: Remittances are rapidly rising up the agenda as an important source of funds for the third world development but a number of factors are preventing the UK market from realising its true potential and maximising the flows of funds to developing countries. Key issues include:
- UK high street banks are not meeting the needs of remittance consumers
- Specialist money transfer companies offer consumers the fast, reliable and cost effective service they want but the UK banks are making it difficult for money transfer companies to obtain the bank account facilities they need to operate
- The lack of a level regulatory playing field is holding back the development of the UK and European market place
- New legislation being debated in the EU has the potential to substantially liberalise the market place, but the UK government needs to do more to ensure that money transfer companies are not excluded from offering the competition to the banks which consumers need
- The UK government could do more to incentivise UK money remittance consumers through tax reliefs on remittances sent for development purposes
Thorncroft continues: "The government has demonstrated its support for remittances through a number of initiatives, which have been launched by the Department for International Development. We welcome this. However, money remitters will be looking for a commitment that the Treasury will do much more to encourage the UK banks to work with money transfer companies a lack of regulatory clarity is giving the banks an excuse to reject money transmitter accounts in most cases, without any good reason."
Press release ends
12th April 2006
Notes to Editors:
- The Conference is being organised by UK Money Transmitters Association, the trade body for money transfer companies in the UK. The UKMTA has 400 registered money transfer companies in its network. There are more than 2,000 money transfer companies registered with HM Revenue and Customs
- It is expected that up to 150 money transfer companies, UK banks, government regulators and consumers will attend the conference on 27th April 2006, which is taking place at Landmark Hotel, 222 Marylebone Road, NW1 (opposite Marylebone tube). The conference will start at 9.00 and finish and 1.00 pm.
- The conference will look at issues which are affecting the UK remittances market, which may have an annual turnover of as much as £4.6 billion annually (based on World bank statistics/methodology the official UK Department for International Development figure for market size is £2.3 billion). The average size of a single remittance is £500 or less (based on UKMTA research).
- The UKMTA has been active in lobbying the government on issues relating to remittances and access by money transfer companies to bank accounts. Representations have been made on these issues to both the House of Commons International Development Committee and House of Commons Treasury Select Committee in recent months.
- Forthcoming legislation which will impact on the UK remittances market place includes: HM Treasury Review of regulation of money services business (due to launch, Spring 2006), EU Payments Regulation (due for implementation January 2007), 3rd EU AML directive (due for UK implementation in Autumn 2007), EU Payments Directive (due Spring 2008)
- Chequepoint and Earthport are sponsoring the conference.
- Chequepoint is the third largest money transfer company in the UK, with more than 850 high street agents. Chequepoint offers a money transfer service to more than 80 countries worldwide. Chequepoint offers some of the most cost effective prices in the UK market place (see, for confirmation, UK government sponsored website: www.sendmoneyhome.org)
- Earthport plc is a UK-based company specialising in the provision of secure electronic payment services. Earthport's key product is its Universal Payment Network, a payment infrastructure that links directly to traditional and modern banking systems around the world. The UPN allows parties to make and collect payments using bank accounts and card services in a secure and compliant environment at affordable rates. The UPN enables electronic, multi-currency payments to be made to over 190 countries worldwide and collections from over 35. The UPN is bi-directional and caters for micro to macro payments. Further information may be obtained from Earthports website at www.earthport.com
- For more information about the conference, contact Dominic Thorncroft, Conference Chairman, 0207 341 7985 or dominic.thorncroft@chequepoint.com