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Send your hard-earned money only through legal channels!

Tuesday, 17 January 2017
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In todayÔÇÖs globalised world, speed, access and convenience are everything. Given that there are a large number of people who are working in different countries as skilled, semi-skilled and unskilled labour, it is imperative for any migrant worker to have the right means to transfer money to their country of origin. To be able to do this, they need to send money through the right channels, and not through the multiple intermediary channels, that are currently available.

earned money

Money transfer channels can broadly be classified into formal and informal channels. Informal channels of transferring money are through private, unrecorded and illegitimate channels, usually referred to as hawala or hundi systems. A large number of these ÔÇ£informal money transfer systemsÔÇØ are not licensed, regulated or registered as private money exchange and money transfer providers. Most of their transactions are deemed illicit and are fraught with multiple risks. Several migrant workers across all economic strata fall prey to these systems and channels and are left with no means to safeguard their hard-earned money.

On the other hand, sending money through formal and legal channels safeguard money, and is in fact faster and cheaper depending on how you want to send the money, and the amount of money that needs to be transferred. Most importantly, remitting via formal channels help contribute to the overall growth of the receiving country. HereÔÇÖs how formal channels benefit individual and country as a whole.

  • Every transaction through a legal money remittance channel is bound by a contract protecting the interests of both the remitter and the intermediary.
  • Specific laws that regulate the service providerÔÇÖs products, services and transactions are overseen by an official supervisory authority. In case of any issue, the remitter can appeal to the supervisory authority or a court with the right jurisdiction.
  • Each remitter and receiver has to be formally identified, thereby avoiding any indirect abetment of organisation working against national interests.
  • Visibility to your accounts may draw benefits of access to other financial services such as loans and credit lines.

Moreover, the cost of remittances has shown a declining trend, thanks to increased competition amongst Banks, Money Transfer Operators (MTOs) and Post-Offices and several other non-banking financial institutions. Of these, MTOs are extremely popular for their focus on money exchange and remittance and a wide array of related products and services.

Exchange houses such as UAE Exchange are trusted, committed and authorised formal channels for money remittance. As part of their corporate social responsibility, they run campaigns to reiterate the importance of remitting via formal channels. In fact ÔÇ£Amar BangladeshÔÇØ is one such campaign, that aims to raise awareness and encourage Bangladeshi workers to send their hard-earned money through legal channels. This beautiful campaign was unveiled on 27 December 2016 where His Excellency Muhammad Imran, Ambassador of Bangladesh to the UAE, was the Guest of Honour. According to His Excellency, ÔÇ£Bangladeshis living outside Bangladesh have been a strong pillar of support for the country. UAE Exchange has always supported this hardworking community in transferring their hard-earned money back home. We have pioneered various initiatives to help them stay consistent in sending money through formal channels. Amar Bangladesh is one such initiative. This campaign will enable expatriate Bangladeshis to safeguard their earnings and plan their future better.ÔÇØ

Let us know how you think formal and legal channels of sending money have more advantages when compared to illegal ones!

Last modified on Tuesday, 17 January 2017 07:19