The UK’s financial system continues to develop and grow, not least in the money transfer market. Growth is fueled by complementary factors: demand is high, and digitalization makes sending money overseas easier and cheaper than before. There are over 650 Money Transfer Operators (MTOs) in the UK, and digital services mean there’s less need for a physical location to send money. This greater convenience will continue to draw business towards online services. Alongside this evolution run dual responsibilities. Consumers need to choose the right provider wisely. And MTOs must ensure a reliable service, including adhering to financial compliance regulations.
Growing Demand, Diverse Needs
As demand for money transfers booms, the nature of that demand is changing. ‘Traditional’ remittances from migrant workers supporting families back home still dominates. But new patterns are emerging. These range from parents sending money to offspring studying overseas, to purchases of foreign property, and businesses seeking the most economical way to pay their overseas suppliers. Such diversification increases the need for deeper understanding of the remittance process and the options available.
Practical advice – not just for beginners
In The Times newspaper’s Money Mentor column recently, Michael Brown provides a foundational guide for those new to international money transfers. He considers the best and most cost-effective ways to send money from the UK to other countries. Highlighting the costs associated with different transfer methods, he provides a useful starting point for consumers seeking clarity in a complex market.
However, the narrative extends beyond consumers. Money Transfer Operators face their own challenges. They must ensure their services are efficient and credible. And for credible, read compliant with anti-money laundering (AML) regulations. The process of identity verification and Know Your Customer (KYC) checks are critical components of this process. To cope with demand, there has been a steady shift towards automation, to manage the volume of transactions without compromising accuracy or speed.
Re-defining Comprehensive Solutions
Stakes are high. With a market that is as vast as it is varied, ensuring compliance is both a regulatory requirement and a way for MTOs to demonstrate reliability. The nature of these processes in an environment that demands same-day or overnight transfers requires solutions that are both comprehensive and reliable.
Many providers promise this elusive fix, but a significant number lack the combination of genuine flexibility and in-depth coverage. However, such services do exist. Compli, from Essiell Compli, fits the bill perfectly. One of the few genuinely comprehensive solutions, it stands out for its ability to blend speed, accuracy, and comprehensive inquiry into a seamless service. It precisely meets the needs of MTOs, ensuring they can scale their operations to match demand without loss of compliance effectiveness. From thorough KYC processes, including checks against false or stolen ID documents, to ongoing transaction monitoring for suspicious activities, Compli offers a robust framework for MTOs aiming to secure their operations against financial crime.
Knowledge is Power
This balance of consumer insight and the operational precision required by MTOs captures the dual narrative of today’s remittance market. For all parties it’s essential to stay informed and act prudently. As is often the case, knowledge is power, and the most knowledgeable will often be the best equipped. For consumers it’s about a well-considered choice of money transfer operator. For the MTO, it’s all to do with reliability. And where better to start than with a compliance service that delivers comprehensive, scalable, and cost effective coverage?
By Declan Morton, staff writer at Essiell Compli
For Reference: The best and cheapest ways to send money abroad from the UK, Michael Brown, The Times, 15th April 2024
