No money remittance agencies are operating outside the banks (see the answer to the question 1.6).

Alternative remittance systems that transfer money or other assets using conduits other than formal financial institutions can similarly be an obstacle to combating money laundering.

Sending money to some countries is now allowed only through formal banking channels, and this has created virtual monopolies while also preventing remittance money from reaching rural areas where banks don t operate.

Alternative remittance systems

Law no 48 of June 26 2003 published in Official Gazette no 24831 of June 26 2003 regulates the operations of money remittance companies.

The CTC would appreciate receiving the number of money remittance agencies transfer services registered and or licensed in the Netherlands, Netherlands Antilles and Aruba.

Harnessing the Remittance Boom

SR VI. Alternative remittance

Alternative informal remittance systems

There are different approaches to the problem, particularly between remittance source States and remittance receiving States.

The Law defines that money remittance companies are those natural or legal persons which provide a service for the transmission of money through money transfers or any funds transfers, funds compensation, or by virtue of any other means, inside and outside the country of Panama.

Other forms of alternative remittance system, such as hundi or hawala, could be discussed here. In addition, other modi operandi (typologies) of money laundering could be discussed.

Sub paragraph 1 (d) of the Resolution requires States to have legal measures in place to regulate alternative money remittance agencies transfer services and informal banking networks.

Two of those cases one filed by a charity, Benevolence International Foundation, and the other by money remittance firms and a related individual were dismissed years ago.

According to the Law on the System of Payments, the activity of money remittance transfer services is illegal if they are not licensed by the Central Bank.

E. Alternative informal remittance systems

In some States informal remittance systems are neither regulated nor illegal, but in these cases their laws generally apply only to money transfers made from or to accounts maintained at banks and do not cover informal money transfers.

There are no alternate remittance systems.

The impact of remittance income on household well being depends on who controls remittance income and how it is spent.

According to the Law on the System of Payments and Payment Organizations the Money remittance transfer service can operate outside the banks only after being licensed by the Central Bank.

The remittance flow continues to be buoyant.

According to the CIA and the Central Bank of Somalia, despite experiencing civil unrest, Somalia has maintained a healthy informal economy, based mainly on livestock, remittance money transfer companies and telecommunications.

In some States where money or value transfer services are allowed only to institutions licensed or registered as banks, alternative remittance systems are automatically an illegal and underground form of banking.

Efforts should be made in focusing on topics related to criminalizing financial illegal activities, money laundering and freezing and confiscating assets, and to the regulation and control of alternative remittance systems (hawalas).

(c) In order to address the concerns of remittance receiving States, registered alternative remittance systems should be obliged to settle balances through normal banking channels

Remittance income formed a big part of Yemen s budget.

Has this name been circulated to alternative remittance systems?

Ms. Dee sent the rest of the money ( 1 million) to Ms. Chung in Youngland, through an underground banker, Mr. Ezura, in Zeitstaat, who had his counterpart, Ms. Jabbar, in Youngland (alternative remittance system).

The networks that allow some Somali warlords to channel funds for the procurement of arms comprise businesses operating in diverse economic sectors in trade, telecommunications, air transportation and money remittance services in Somalia and abroad.

alternative remittance systems are difficult to licence or to supervise.

It is not enough that remittance source States introduce stringent anti money laundering and combating financing of terrorism controls if receiving States do not aim to impose similar controls at the other end of the transaction.

The other two Aaran Money Wire Service and Global Service International were money remittance firms, the first of which was headed by Mr. Nor.f In each of these cases, the entities and individual challenged the United States Government's action in designating them as supporters of terrorism and freezing their assets.

Furthermore, remittance levels are double those of official development assistance (ODA).

The remittance system of Hawala does not obtain in this jurisdiction.

Migrants remittance behavior is essentially dictated by the regulatory environment and the quality in terms of speed, cost, security, and accessibility of products and services offered by banks, money transfer companies, micro finance institutions, and informal operators.

According to resolution 1455 (2003) reports, the top four remittance source States in 2001 as identified by the World Bank all require money transfer services to register, implement know your customer rules and file suspicious transactions reports.

Although there are relatively few known examples of the use of alternative or informal remittance systems by Al Qaida, the Taliban or their associates, these methods of moving money are vulnerable to abuse by terrorists and other criminals.

Hurdles in converting informal remittance systems to formal systems through registration or licensing

Other countries, however, have taken steps to make remittance transfers possible via mobile phones.

(q) Issues related to the informal and cash based economy, including alternative remittance systems

Policies and projects that facilitated the development impact of remittances must be analysed. As half of remittance senders and the majority of remittance recipients, women were playing a central role in managing and distributing such income.

Cash couriers, alternative remittance systems and charities can all be exploited to finance terrorism, and the challenge for the international community lies in finding a proper balance between restricting the flow of money to terrorists and allowing legitimate transactions to continue freely.

The Team believes that when money crosses borders it does so most commonly by cash couriers and through informal remittance systems, though electronic transfers may be made between operatives who are thought not to have come to the attention of the authorities.

Alternative remittance systems are known by many terms, but all share the same operational characteristics.

One State has recorded some success in encouraging the voluntary registration of alternative remittance systems.