Goal 10: Reduced inequalities - 10.c on remittances costs reduction

The Government of Kenya and IOM released in 2017 a guide for diaspora remittances and investments in the country.

Somalia is experiencing a remarkable recovery from decades of war and instability. Moving forward it is essential for the country to develop a strong and sound financial system which is up to international standards in terms of  efficiency, transparency and regulation. One key element of the Somali financial system is mobile money. Mobile money allows Somalis to store money, as well as to receive and make payments. This is a major development for a country that lacks a strong currency, remains unsafe in many regions and in which 90% of the population does not have a bank account.

The Money Remittances Improvement Act of 2014 allows the Financial Crimes Enforcement Network (FinCEN) to rely on state examinations of MTOs, reducing duplicative oversight and increasing the effectiveness of overall supervision. In March 2016, FinCEN released guidance to make regulatory expectations related to MTO principal supervision of agents clearer and to eliminate misunderstandings about what is expected from principals.

The UK Government introduced Payment services legislation in 2017 to implement the second European Payment Services Directive (PSD2). The Legislation will come into force in the UK in January 2018. Under this legislation credit institutions will be required to provide payment service providers (PSPs) with access to payment accounts on a proportionate, objective and non-discriminatory basis, and report instances where access has been denied to the UK Financial Conduct Authority (FCA). 

The Support Fund for Investments of Senegalese Abroad (Fonds d’appui à l’investissement des Sénégalais de l’extérieur – FAISE) aims to promote productive investments in Senegal by citizens living overseas with the long-term objective of encouraging their voluntary return to the country.

The Saudi Arabian Monetary Authority (“SAMA”) initiated the “Remittance Centers Project” at the end of 2016. The Project’s objective is to review the remittances environment and identify areas of improvement, with a particular focus on the centers’ working hours, pricing and service quality, as well as the technology utilization and electronic channels. The project will be completed by the end of 2017. 

The National Financial Literacy Strategy initiated by the Ministry of Finance of the Russian Federation was approved by the Russian Government in September, 2017. This Strategy includes special financial consumer protection measures and financial education activities for migrants and their families. The implementation will start in 2018. 

The Republic of Korea has built infrastructure that directly links national remittance service providers with those in receiving countries to provide real-time remittance services at affordable costs, through the removal of intermediary services such as SWIFT and the establishment of bilateral partnerships between clearing and settlement institutions (e.g. the Korea Financial Telecommunications and clearing institutions). 

The Philippine Development Plan (2011–2016) explicitly noted the need to promote financial inclusion and facilitate remittances domestically and from abroad.