Agent worried about bill to regulate money transfer businesses

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A leading money transfer business, One Currency, which are agents for Western Union have made known their concerns regarding an administration bill which aims to regulate money transfer businesses.

This was confirmed by the Chairman of the House Commerce Committee, Rep Sam Meleisea, who says that he received a letter from representatives of One Currency based in Samoa.

The Tuala-uta faipule says the main concern expressed by the business is that this will hurt low income customers, for example cannery workers, who send money for family obligations in Samoa.

There’s also concern about the regulations and the registration fee for money transfer businesses which according to the bill is $10,000 in time deposits.

Governor Lolo Moliga said in introducing the bill that due to the large amount of monies handled by these types of businesses, regulatory oversight is needed to ensure monies are handled properly.

He said the proposed legislation regulates two types of money service businesses:businesses:foreign currency exchanges and money transmitters.

“Another reason for regulation is to enable money service businesses to open accounts with a local financial institution,” Lolo explained.

“Finally, in order to help ASG carry out its vital services, this bill requires that a money transmitter collect a transfer fee on every money transmission transaction.”

The House Commerce Committee heard testimony on the bill from Robert Ho Chee, Commissioner of the Office of Financial Institutions, the division of Treasury which will oversee banks and money transfer businesses.

Chairman Meleisea said because several other revenue bills had already been passed, members felt that the bill should be shelved until another time.