(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

It is still common for electronic remittance or invoicing to be printed in order to maintain paper records.

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

Alternative remittance systems

The remittance flow continues to be buoyant.

Harnessing the Remittance Boom

SR VI. Alternative remittance

Alternative informal remittance systems

E. Alternative informal remittance systems

Has this name been circulated to alternative remittance systems?

alternative remittance systems are difficult to licence or to supervise.

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.

Remittance income formed a big part of Yemen s budget.

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

Many States may therefore need to amend their laws to bring informal remittance systems under regulation.

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

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

Table 3 Private remittance flows to Africa, 1998 2003 (In billions of United States dollars)a

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

Some States have initiated registration or licensing regimes for alternative remittance systems, or plan to do so.

The regulatory authorities of some States have initiated programmes to detect unregistered or unlicensed alternative remittance activity.

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.

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.

The ministers called on Member States that had made pledges to the Afghan People Assistance Fund to expedite the remittance of their donations in order to strengthen the Fund's resources thereby making it possible for it to more effectively contribute to the achievement of its intended noble humanitarian goals.

The principal remittance receiving States appear to prefer a soft, incentive based approach meant to improve public accessibility to the formal banking systems.

Please indicate the laws and procedures available to regulate alternative remittance systems, including systems of, or similar to, the kind known as hawala.

The Team makes no distinction between alternative and informal remittance systems for the purposes of this report.

(d) African authorities should view capital and remittance flows as an important part of their national economic statistics.

The Monitoring Team believes that these States have all taken concrete and effective action to implement the financial measures with respect to alternative remittance systems.

For example, in commodity dependent and resource strapped Lesotho, remittance receipts represented about 27 per cent of GDP in 2001.

Although few States in their 1,455 reports acknowledged the existence of unregulated remittance systems within their jurisdiction, they are widespread.

Encourages Governments and other relevant stakeholders to consider adopting measures, in accordance with national legislation, that facilitate migrant remittance flows to recipient countries, including through, inter alia

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.

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.

2. Encourages Governments and other relevant stakeholders to consider adopting measures, in accordance with national legislation, that facilitate migrant remittance flows to recipient countries, including through, inter alia

Every year, thousands of desperate Tajik citizens leave the world's most remittance dependent country for a better life, mostly in Russia.

In Bangladesh, for example, just 13 of households that receive remittances from abroad are below the poverty line, compared to 34 of non remittance receiving households.

It also seeks to identify individuals and businesses that provide alternative remittance services, including those that have not engaged with the Unit as required by law.

(a) States not prepared to ban alternative remittance systems should be encouraged at least to register, and preferably to licence them, with prosecution available for all unregistered or unlicensed operators

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.

There would be fewer informal systems, and those remaining would have to be less secretive to compete for business with regulated remittance service providers, so allowing more scrutiny by authorities.