Come October, those sending money off island via money transfer agencies will be paying a fee.
And money transfer agencies will pay new license fees and be subject to new regulations which don’t exist now.
This is due to an administration bill to regulate money transfer agencies and businesses dealing with money transactions other than banks which has now been signed into law, the Money Service Business Regulatory Act.
It was signed by then Acting Governor, attorney general Talauega Eleasalo Ale on April 29.
Talauega said in a letter to the Fono leaders informing them that he has signed the bill, “Money Services Businesses (MSBs) are becoming an increasingly important part of the financial system.
“Regulatory oversight is needed due to the large amount of monies handled by them.”
The Act he said provides the statutory framework needed for the Office of Financial Institutions (OFI) to properly regulate money service businesses.
Senate changes made to the administration bill and which were passed by the House, waters down the authority of the Commissioner of Financial Institutions to revoke on his own licenses of businesses that violate provisions of the act and directs fees collected under the law to an Enterprise Fund.
The bill goes into effect six months after the end of the Fono session in which it was passed, which means it will go into effect mid October.
