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

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

Remittance flows have become an increasing source of foreign exchange for many developing countries and a potential source of development finance.

Alternative remittance systems

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

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

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

Many small developing countries also receive remittance flows that are significant as a share of GDP or in per capita terms Lebanon, Lesotho, Tajikistan and Tonga are examples.

Harnessing the Remittance Boom

SR VI. Alternative remittance

Alternative informal remittance systems

Recognizing that remittance flows constitute sources of private capital and that remittances have increased over time, complement domestic savings and are instrumental in improving the well being of recipients,

Recognizing that remittance flows constitute sources of private capital and that remittances have increased over time, complement domestic savings and are instrumental in improving the well being of recipients,

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

E. Alternative informal remittance systems

Recognizing also that remittance flows constitute one of the important aspects of international migration and that they particularly benefit the households of migrants and could impact the economies of recipient countries,

Recognizing also that remittance flows constitute one of the important aspects of international migration and that they particularly benefit the households of migrants and could impact the economies of recipient countries,

There are no alternate remittance systems.

Recent work has tended to stress the developmental dimension of remittance flows, highlighting its role in developing human capital through education and, to a lesser extent, physical investment in farms or housing.

The impact of remittance income on household well being depends on who controls remittance income and how it is spent.

The remittance flow continues to be buoyant.

As half of remittance senders and the majority of remittance recipients, women were playing a central role in managing and distributing such income.

When the incentives to use informal channels are high enough, empirical research suggests that recorded remittance flows can be only one half, or even less than one half, of the total amounts flowing through all channels.

Has this name been circulated to alternative remittance systems?

(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

I'm sorry, without an I.D. you cannot receive a remittance.

alternative remittance systems are difficult to licence or to supervise.

They should also adopt specific policies to affect volumes of remittances, remittance transfer mechanisms, management of remittance funds, the use of remittances and diaspora contributions to development.

The International Research and Training Institute for the Advancement of Women, for example, carried out research on the gender dimensions of remittance flows in order to identify strategic entry points for strengthening women's capacity to take advantage of financial services.

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

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

More important, these published numbers surely understate the true magnitude of remittance flows, since migrants sending funds home have a choice they can choose between institutional entities such as banks, Western Union, MoneyGram, exchange houses and the like, as well as informal channels.

(a) Simplifying procedures and facilitating access to formal means of remittance transfers

Hurdles in converting informal remittance systems to formal systems through registration or licensing

Initiatives were also needed to improve remittance services to migrants and reduce transfer costs.

Capital flows

OFDI flows

Debt flows

Alternative remittance systems are known by many terms, but all share the same operational characteristics.

Other forms of alternative remittance system, such as hundi or hawala, could be discussed here.

One State has recorded some success in encouraging the voluntary registration of alternative remittance systems.

It is not thought that licensing alone would prevent alternative remittance systems being used by terrorists.

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

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

The exploitation of Alternative Remittance Systems such as trade based money, hawala and NGOs are addressed.