Note: Scroll down for the latest updates. HOME: http://www.blackmarketgold.com/news.html SOURCE: http://www.nyc.gov/html/dca/html/pr_remittances.html US AGENTS FIND INCONSISTENT PRICES, NO DISCLOSURE, AND UNCLEAR US AGENT REGULATION OF TAXPAYERS OPERATING FIAT CURRENCY UNIT TRANSFER BUSINESSES ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FOR IMMEDIATE RELEASE October 20, 2003 DCA REPORT FINDS INCONSISTENT PRICES, NO DISCLOSURE, AND UNCLEAR REGULATION OF MONEY TRANSFER INDUSTRY NYS Assembly Committees and DCA Hold Public Hearing to Explore Issues and Regulations The New York City Department of Consumer Affairs (DCA) today released a report on the billion-dollar money transfer industry, illustrating a snapshot of its impact on City businesses and immigrant communities. DCA studied three City neighborhoods - Washington Heights in Manhattan, Sunset Park in Brooklyn, and Jackson Heights, Queens. The report was released at an exploratory public forum held by both the DCA and several New York State Assembly Committees, including the Committee on Banking, Consumer Affairs, and the Hispanic Task Force at Hostos Community College in the Bronx. Banking experts, international development specialists, industry representatives, immigrant groups, and communities testified. "Hardworking New Yorkers send $3 billion a year to their families back home in their native countries. We want to insure that these funds are protected. It is important that we examine whether better state legislation is needed to protect the public," said Assemblywoman Catherine Nolan, the Assembly's newly appointed Banks Committee Chairwoman. "Legislation may need to be developed to promote a fairer playing field." "The vast majority of money transfers sent from New York State 'back home' every year are from New York City residents," said DCA Commissioner Gretchen Dykstra. "In the last ten years, the City's foreign-born population has grown by 38%. Thousands of transactions are made every day that are unclearly regulated and could be potential ripoffs. Consumers need to know what they are paying for, and know that hard-earned money will get to its destination timely and safely. Today's public forum is the second step in identifying successes and problems. We look forward to more dialogue with industry representatives, local officials, immigrant groups and communities." According to Assemblyman Peter M. Rivera, chairman of the New York State Assembly Puerto Rican/Hispanic Task Force, "The Task Force believes that allowing the use of foreign issued identification, such as the matricula consular, for opening banking accounts is essential to both immigrants and financial institutions serving minority communities." He added, "In general, bank accounts help customers build assets and avoid high cost financial services, such as check cashiers, payday lenders, couriers, and money transmitters." DCA's report found the proliferation of local money transfer agents - often neighborhood restaurants, travel agencies, and stationary stores - are linked to a small group of licensed agents, permitting remittance companies to charge inconsistent rates while not disclosing either the cost of exchange rates or any other hidden fees. It also found that regulation of these agencies was ambiguous. While New York State regulates money transmitters such as Western Union and MoneyGram, it is unclear whether local affiliate agencies are regulated with as much scrutiny. The DCA field team visited nearly 90 locations in three New York City communities - Washington Heights, Sunset Park, and Jackson Heights. The varied cost of sending $500 to the Dominican Republic were documented with prices ranging from $5 - $38 and transmission time ranging from "a couple of hours" to "not more than 24 hours." Further, the report shows that many local agents often develop prices "on the spot." DCA enforces the City's Consumer Protection Law and other related laws at thousands of businesses throughout New York City. Fostering a marketplace where consumers are protected and businesses can thrive, DCA licenses more than 60,000 businesses in 55 different categories citywide. Through free community seminars, licensing forums, and other informational materials, DCA educates consumers and businesses alike about their rights and responsibilities. To file a complaint, check on a vendor's complaint history, check if a business is licensed, call 311 or go online to www.nyc.gov. Copies of the DCA report on money transfers are available at www.nyc.gov. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ HOME: http://www.blackmarketgold.com/2004_01_01_taxpayersbridge_archive.html#010804 SOURCE: http://www.weeklyholiday.net/230503/front.html http://www.indypressny.org/article.php3?ArticleID=846 May 23, 2003 Sonali Exchange disappoints remitters from US No alternative left for illegals but Hundi Moinuddin Naser from New York Remittance of money by the illegal immigrants from the United States has become difficult nowadays, and this will have a seriously deleterious effect on Bangladesh's economy. The illegal immigrants send more money than the legal ones. In many cases, the illegal immigrants are not able to send money through legal channels. Their only recourse is to send money by an informal system that is called Hundi. It may be mentioned that the Bangladeshi money exchange company, Sonali Exchange, was set up with a view to providing a viable alternative to Hundi and thus stopping the remittance of money through illegal means. The goal is yet to be achieved. Other than the Sonali Exchange, most such agencies are being operated under the new rules of the US banking system. As per rules set by the banking division, one can send the money by showing one?s identity card. The Sonali Exchange, however, has made a rule that the immigrants have to show the documents of their legal residency in the USA. On the other hand, money transfers through agencies like Placid Express, despite reasonable restrictions either way, is still much easier than through Sonali Exchange. Many persons who want to remit money to Bangladesh or any other country may have to resort to Hundi, which is bad for both the United States and the country of destination. It may be mentioned that after September 11, 2001, the United States increased its vigilance of the money transfer companies. Sonali Exchange also has been kept under observation. A knowledgeable source said that had the officers of Sonali Exchange remained cautious from the very beginning, they would not have come under such observation. Now one has to show either the driving licence or the identity card in order to remit a sum below 900 dollars. And if the amount is over 900 dollars, one has to show both the Social Security Number and the identity card. There are three kinds of Social Security Numbers. The first is not valid for work. This kind of Social Security Number is not valid for the purpose of remittance. For those possessing an identity card with INS authorisation only, the work permit is required to be shown to Sonali Exchange. Another kind of social security card is issued to persons who are either Green Card holders or citizens of this country. Nothing is written on this social security card except the number. Only the holders of these social security cards may send sums of more than 900 dollars by showing the driving licence. One also requires State Identity if one wants to send any amount of money up to 900 dollars. But now, in New York, State Identity is not issued without Social Security Card. The practice of issuing State Identity to the illegal immigrants on the basis of six points is not in effect. That means the illegal immigrants are not able to obtain even driving licences. Under this circumstance, the illegal immigrants, who have to show both the Social Security Card and State Identity, are unable to send money legally. Sonali Exchange is considered to be the most secure institution by the expatriate Bangladeshis who want to send money to their relatives. But due to the prevailing circumstances, the expatriates are not getting the desired services from it. It is true that one requires identity in sending money, but whether Sonali Exchange has the right to see the legal residency of any person is a questionable matter. Mintu Lal Shaha of Placid Express said in this regard that his company also requires identity to remit money. But this identity may be the passport, identity of work place, driving licence or anything else. He says that in Placid?s case, the Social Security Number is required when one wants to remit more than 3000 dollars. His company has to see the work authorisation if anyone wants to send more than 5000 dollars. Placid operates in more than 60 locations in the USA and has its account with the CitiBank. On the other hand, Sonali Exchange keeps its account with the Chase Manhattan bank and has adopted this system as a matter of additional caution. Here a valid Social Security Number is a coveted thing, so it is being faked frequently. The Social Security Number has to be shown every time one wants to send money home. As a result it is creating unnecessary pressure on the remitter and unnecessary work for the officers of Sonali Exchange. If such restrictions are imposed in remitting money, the illegal immigrants will have no alternative other than Hundi. In this connection, the chief executive of Sonali Exchange, Kazi Asaduzzaman, told this correspondent that efforts are being made to devise a method so that no one is harassed while availing himself of the services of Sonali Exchange. A measure will be taken in this regard. Managing Director of Sonali Bank, Rabiul Hossain, who recently visited the USA, said that to comply with the rules now prevailing in the USA, the Sonali Exchange has adopted additional cautionary measures. FBI team in BD to check money transaction. A team of the Federal Bureau of Intelligence (FBI) of the United States went to Bangladesh recently to ascertain whether the money sent through Sonali Exchange was being used for terrorist activities. The Managing Director of the Sonali Bank said that all the money that is being sent by Sonali Exchange, a subsidiary of the Sonali Bank, is being delivered through bank accounts. The money sent is being used for the sustenance of the close relatives of the expatriates, for recovery of the property which was mortgaged to others as collateral to obtain money for travel to USA or to repurchase sold property. He said that sustained efforts have also been made to open a full-fledged branch of the Sonali Bank in the USA in the interest of expatriates and in the light of the present situation. Licence has also been obtained to open a branch at Patterson in New Jersey and soon arrangements will be made to set up the branch. Rabiul Hossain further said that application had also been made to open branches of the Sonali Exchange at Washington D.C., Florida and Atlanta. He said that after the September 11, 2001, money laundering was not doing well, thus boosting the business of Sonali Exchange. In 2001, 93,000 people sent money to Bangladesh from the USA, and in 2002 the figure shot up to 157,000. The volume of remitted money almost doubled. He said that in 2001 the total amount of money remitted was 112 million dollars, while in 2002 the amount was 181 million dollars. This year the flow has increased in comparison to the corresponding period of last year. Rabiul Hossain said that the Jackson Heights branch of the Sonali Bank is remitting the highest amount of money to Bangladesh while the Atlanta branch is remitting the lowest. He said that the expatriates in the United States, Britain and Saudi Arabia last year had sent a total amount of one billion dollars as remittance; during the previous year, the amount was 600 million. He told the press that comparatively the largest amount of remittance came from Bangladeshi expatriates in Saudi Arabia, while the expatriates in the USA were sending the third largest amount.