The Canada-Caribbean Remittance Corridor: Fostering Formal Remittances to Haiti and Jamaica through Effective Regulation
This report aims to help policymakers improve the integrity and safety of the Canadian and Caribbean remittance markets. It focuses on the remittance corridor between Canada-Haiti and Canada-Jamaica.
Since the late 1960s, Canada has been an attractive destination for Caribbean migrants. In 2006, there were an estimated 580,000 individuals of Caribbean descent in Canada, with the Haitian and Jamaican communities being the two largest immigrant groups. The report reveals that:
- Money Transfer Operators (MTOs) dominate the remittances market in Canada,
- Banks play only a minor role;
- Canadian banks and major international MTOs have recently launched partnerships;
- MTOs in Canada are regulated under the Anti-Money Laundering/Combating the Financing of Terrorism regime, based on the Proceeds of Crime and Terrorist Financing Act ;
- Central Banks in Haiti and Jamaica regulate, supervise and monitor MTOs.
In order to enhance knowledge of remittance flows and their size for policy design purposes, the report recommends:
- Strengthening regulatory framework governing remittances;
- Ensuring effective implementation of regulatory requirements;
- Fostering competition and transparency in remittance markets;
- Promoting sound policies for migration and migrant integration.