General Principles for International Remittance Services
This report analyzes the payment system aspects of remittances, and provides general principles for countries seeking to improve the market for remittance transfers.
In June 2004, the G8 countries agreed to work with developing countries to reduce the cost of making remittances, and created a task force to develop principles for international remittance services. The report by the task force focuses on the payment system aspects of remittances. The general principles outlined in the report include:
- Remittance services market should be transparent and have adequate consumer protection;
- Improvements to payment system infrastructure that have the potential to increase efficiency of remittance services should be encouraged;
- Remittance services should be supported by a sound, predictable, non-discriminatory and proportionate legal and regulatory framework;
- Competitive market conditions, including appropriate access to domestic payment infrastructures, should be fostered in the remittance industry;
- Remittance services should be supported by appropriate governance and risk management practices.
Finally, the report states that remittance service providers should participate actively in the implementation of the General Principles. Public authorities should attempt to achieve public policy objectives through implementation of these principles.