Some money transfer charges not transparent, says regulator
The regulator yesterday released the findings of an exercise in the money transmission business. The purpose was to confirm that such firms are charging customers correctly and transparently.
Overall, the findings showed that while money transmission businesses were compliant with their approved charges, there were issues in some firms regarding the transparency of such charges. These related to the disclosure of charges and inadequate provision of information.
In some cases exchange rates and charges were not provided at the time of the transaction and charges were not published on printed material or displayed on websites.
Money transmission firms are required to display foreign exchange rates and charges, and are obliged to be as transparent as possible in the information they provide to consumers.
Thirty money transfers were undertaken to 12 countries (Australia, Brazil, China, Latvia, Lithuania, New Zealand, Nigeria, Philippines, Poland, Slovak Republic, Britain and the US). The destinations were chosen on the basis of the largest groups of non-Irish nationals resident in Ireland.
Individuals were recruited from these countries to carry out money transfers.
Where issues were identified, the Financial Regulator has followed up with the relevant institution to make sure appropriate changes are made. It intends to repeat this exercise in the future to monitor compliance.
Commenting on the findings, consumer director of the Financial Regulator Mary O’Dea said consumers should check rates and charges before choosing a transmission company.
“Money transmission businesses are required to display foreign exchange rates and charges, and must be as transparent as possible.
“I would encourage consumers to take note of the exchange rates and charges before choosing a money transmitter,” she said.
www.financialregulator.ie
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