Protect Yourself When Sending Money Abroad
If you’re thinking about sending money abroad to a family member or friend, make sure you are sending through a reputable source. How do you figure this out?
The federal government qualifies certain money transmitters, banks, credit unions and possibly other types of financial services companies qualify as “remittance transfer providers.”
Remittance transfer providers are businesses that transfer money electronically for consumers to people and businesses in foreign countries. Under federal law, you have certain protections that these business must comply with.
According to the Consumer Financial Protection Bureau (CFPB), they must share certain information with you before they make any transfers. This includes:
The exchange rate.
Fees and taxes they collect from you.
Fees charged by the company’s agents abroad and certain other institutions involved in the transfer process.
The amount of money expected to be delivered, not including foreign taxes or certain fees charged to the recipient.
- If appropriate, a statement that additional foreign taxes and fees may be deducted from the remittance transfer.