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Australian Regulations Prioritize Consumer Protection: Safeguarding Bangladeshi Remittances

02 Apr 2024


Did you know that 7.7 million of the Australian population are expats?

There is no doubt that Australia is the hub of economic hustle. This land has invited skilled professionals from around the globe and offered them a better lifestyle and higher income. Bangladeshi also did not shy away from seizing this opportunity to earn more and send money to Bangladesh from Australia, contributing significantly to their economy. Hence, the Australian government has recognized the extreme influx of annual remittances and taken action to streamline the process for the expat community.  

Australian Regulations Prioritize Consumer Protection

In an increasingly globalized economy, the importance of remittances, especially to countries like Bangladesh, cannot be overstated. Remittances are a vital financial lifeline for families and contribute significantly to household incomes and the national economy. Australia has positioned consumer protection at the top of its remittance regulation strategy. The Australian Government's approach focuses on reducing transfer costs, enhancing market competition, and implementing robust consumer protection measures.    

Ensuring Affordable Remittance Costs

The cost of sending remittances has long been a concern for Bangladeshis living in Australia. High fees can significantly reduce the money that reaches families back home. In response, Australia pledged to align with the 2030 Agenda for Sustainable Development, particularly targeting the reduction of remittance transfer costs to less than 3% and eliminating corridors with costs higher than 5% by 2030. This commitment shows Australia's broader strategy of enhancing financial inclusivity and ensuring that more money reaches those most in need of it.

Enhancing Market Competition

Historically, the remittance market in Australia was dominated by a few major banks. This led to limited competition and higher costs for consumers. To address this, Australia has focused on increasing market competition. By supporting the entry of non-bank remittance service providers (RSPs), including money transfer operators (MTOs) and digital platforms, the remittance process is gradually changing. 

The Australian Competition and Consumer Commission (ACCC)'s inquiry into foreign currency conversion services criticized high fees and created initiatives for greater competition. Additionally, measures to address the issue of "de-banking" ensure that non-bank RSPs have fair access to banking services, further invigorating market competition. Moreover, many options exist to send money online to Bangladesh from Australia.   

Promoting Transparency and Consumer Awareness

Transparency in remittance charges is important for consumers to make informed decisions. Following recommendations from the ACCC, Australia has introduced guidelines for remittance service providers to disclose all transfer fees openly. This initiative ensures that Bangladeshis in Australia understand the true cost of sending money home. Moreover, efforts to enhance financial and digital literacy among remittance senders are underway. Supported by web-based remittance cost comparison portals such as Send Money Pacific and Saver Asia, these initiatives help users identify the most cost-effective and secure ways to remit funds.   

Using Advanced Technologies

Recognizing the potential of technology to streamline remittance processes, Australia is keen on using new and emerging digital solutions. Adopting the New Payments Platform (NPP) is an example of this approach, which enables real-time, data-rich transactions. Prospective integration of international payments into the NPP promises to speed up remittances while reducing costs due to improved efficiency.    

Protection against Financial Crimes

The severe enforcement of Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws underpins Australia's commitment to mitigating remittance financial crimes. All remittance service providers operating in Australia are required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and comply with stringent AML/CTF obligations. These regulations protect the financial system and ensure the integrity of remittance flows to countries like Bangladesh.   

What is the Most Convenient Remittance Solution for Bangladeshi Expats?  

While Australia has worked hard to incorporate convenient remittance solutions in the banking industry, let’s not forget that banks are not suitable for every expat. There are many Bangladeshi expats whose families reside in remote areas without banking facilities. In such a situation, the recipient cannot receive the money sent to them. Hence, ACE Money Transfer can be your viable remittance option. There are plenty of benefits to using ACE Money Transfer, and a few are listed below.            

Secure and Speedy Transactions   

ACE Money Transfer takes immense pride in providing safe, secure, and speedy international transactions to Bangladeshi expats. The interface is very easy to understand and allows quick and reliable transactions. You can make a money transfer from Australia to Bangladesh without any added delays, which is usually common with bank transfers. This will ensure that the financial needs of your loved ones are fulfilled promptly. It also acts as a great medium in times of emergency fund requirements.     

Moreover, ACE Money Transfer is the most secure platform for sending remittances abroad. The firm uses advanced security measures that include strong encryption and multi-factor authentication to protect the financial information of the user and their hard-earned money. ACE Money Transfer also provides compliance guidelines for overseas Bangladeshis in Australia.

Unimaginably Low Costs    

The transfer fee that ACE Money Transfer charges is next to zero. It is the lowest that one can expect. Hence, sending remittances with ACE won’t create a hole in your pocket. Moreover, there are no hidden charges. Banks often also charge a receiving fee but be assured that nothing much will happen at ACE. The fee structure is transparent, with no hidden charges.

Cash Pickup Options     

If your loved ones reside in a rural area where the banking facility is not readily available, they can depend on ACE to fulfill their financial needs. ACE Money Transfer has thousands of cash pickup stations across Bangladesh to help the families of expats who cannot receive remittances through a bank. 

Australia's comprehensive approach to remittance regulation highlights its dedication to consumer protection, particularly for communities like the Bangladeshi diaspora. By reducing costs, enhancing market competition, and improving transparency, Australia aims to ensure that remittances effectively support families and boost economic development in Bangladesh. Through these measures, Australia is preserving the interests of remittance senders and contributing to the financial well-being of recipients. Moreover, firms like ACE Money Transfer are playing their part in providing cost-efficient, speedy, and secure international transactions. So, sign up on ACE Money Transfer today and enjoy your first free online money transfer from Australia to Bangladesh.

FAQs

Can I send money to Bangladesh using any bank account in Australia?

Yes, most Australian banks allow remittances to Bangladesh, but you may find better rates with specialized remittance service providers.

Do I need special verification to send large amounts to Bangladesh?

Yes, transactions above a certain threshold may require additional verification due to Australia's AML/CTF regulations.

Are digital remittance platforms more cost-effective than traditional banks for sending money to Bangladesh?

Digital platforms such as ACE Money Transfer often offer lower fees and better exchange rates than traditional banks.   

Is using new remittance service providers to send money to Bangladesh safe?

Yes, they are considered safe if they are registered with AUSTRAC and comply with Australian regulations.

How long does it typically take for remittances to reach Bangladesh?

The speed can vary by provider, but digital transfers with ACE can be completed in minutes.

 References:

Australia's Population by Country of Birth, 2022 | Australian Bureau of Statistics (abs.gov.au)


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