In many countries, remittances received from abroad are essential to the recipients’ welfare. But money transmission can be a high-risk business, and even though money transmitters around the world are required to comply with a detailed framework of anti-money laundering (AML) laws and regulations, they still can be misused by criminals.

However, the nature of the nonbank money transmission business does pose more risks to a country’s financial system than perhaps use of a more traditional bank account. Concerned about their own potential liability should a money transmitter have regulatory problems, banks have been dropping money transmitters that have been clients for years and/or not establishing accounts for new ones. The money transmitter needs a bank account to operate, and if their access to the banking system is cut off, they are out of business and the people that may suffer in that instance include family members in other countries who need that money for their very survival.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]