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Why do remittance companies require customer’s information?

Jamaica Money Remitters Association Blog Why do remittance companies require customer’s information?


Why do remittance companies require customer’s information?

Posted By xhanubis

Every customer sending or receiving money through a remittance service provider is required to provide basic information about him/herself before the funds are released. You may be wondering why this is so.

The provision of customer information not only benefits the customer, but also the remittance provider, as well as regulators of the remittance industry.

For customers, providing basic information such as valid identification, address and contact number, ensures that remittances are disbursed to the intended recipient. This allows customers to hold remittance providers accountable for the safe transmission of their funds.

When remittance providers have contact information for customers, such as telephone numbers and an email address, they are able to provide customers with updates on their transactions and share information about promotions such as discounts or rewards.

For remittance providers, having information about customers ensures the efficient and swift processing of high volumes of transactions daily.

Remittance companies in Jamaica are regulated by the Bank of Jamaica (BOJ) to ensure that the local industry has a sound financial operating platform. As a result, they are required to meet the BOJ’s requirements for anti-money laundering measures, referred to as Know Your Customer (KYC) requirements. When customer’s provide information about themselves, this enables remittance providers to meet the requirements of the BOJ, thus being able to continue providing this vital service which many families depend on for their livelihood.

Many remittance companies operate in a global environment and are required to meet international standards of compliance in each country. These standards include ensuring customers are not sending funds to finance terrorism or criminal activities.

Being equipped with customer information helps remittance companies to stave off the categorization of being a “risk” for their overseas financial partners and avoid losing these essential partnerships.

The next time you visit a remittance company or one of its agents, you can expect and appreciate the request from a customer service representative for the following:

  • Your Name
  • Contact Number
  • Address
  • Source of funds – if you or sender are self-employed or work otherwise
  • Your relationship to the sender/receiver
  • Valid identification – passport, driver’s licence, Elector’s ID.
  • If you do not have valid identification, then the respective money transfer operator or agent will be more than willing to suggest an alternative.

By providing this information, you are ensuring that your transactions are secure and helping the remittance company or agent to comply with requirements that will help Jamaica remain a part of the world’s financial system.

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