Paper

Policy and Regulatory Framework for Remittance - Samoa

Assesses the remittances regulatory framework in Samoa and mechanisms to make it more efficient
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This report provides a brief overview of the policy and regulatory framework for remittances in Samoa. Remittances to the country have grown substantially in recent years and are expected to contribute significantly to the national balance of payment figures as well as to household income. Key characteristics discussed in the report include:

  • Remittance market is controlled by a limited number of money transfer agencies and commercial banks that are concentrated in urban areas;
  • Stringent regulations, particularly those related to anti-money laundering (AML) activities constrain the free flow of remittances to Samoa;
  • AML regulations have the potential to capture illegal money entering the country, but cause delays for genuine migrants and remittance recipients;
  • Samoan prudential regulations lack detailed requirements for effective financial system monitoring and management;
  • Samoan residents who are foreign exchange earners are eligible to apply for foreign currency deposit accounts.

Finally, the report suggests that extending access to foreign currency deposit accounts to Samoans outside the country would facilitate the smooth flow of regular inward remittances.

About this Publication

By The Foundation for Development Cooperation
Published