r this purpose.
All UK Money Transmitters have (by law) to comply with both European and UK regulations in order to operate in this country. These regulations are policed by HM Revenue and Customs and each money transmitter is required to comply with all given regulations.
The new EU regulations became effective on 01/01/07, and grace has been given to Money Transmitters to get their books in order, but inspections are now beginning to take place and those found not complying risk being struck off as legal operators.
In brief, the relevant parts of the regulations are as follows;
Money transmitters are required to obtain customer information when undertaking an order for the transfer of a customer’s (payer’s) funds, i.e. name, address and tel nos.
If the transfer of funds is for an amount of 1,000 Euro or more (roughly £680.00) the Payment Service Provider must verify the customer information from a reliable independent source. (This means the acquisition of ID in the form of a passport photo page or photographic driver’s license and a utility bill confirming sender’s residential address, verified by an independent witness.)
Verification will also be required where there are linked transactions which exceed 1,000 Euro. (This means, as soon as you make more than one transmission with a money transmitter and the total exceeds £680.00, you set up linked transactions and thus require verification)
Challenging position
These regulations do not just apply to transmitters sending to Zimbabwe; it applies to all money transmitters in the UK and EU, whether they are sending to Pakistan, Hong Kong or anywhere else for that matter. It is a standard requirement and should be seen in exactly the same way as ID requirements for setting up a bank account here in the UK.
The worry that most Zimbabweans in the UK have is that Money Transmitters are asking them for these details for nefarious reasons. Some believe that their details are being gathered in order to be forwarded to the Zimbabwean authorities, whilst others worry that they will be forwarding their details to the Tax man, Customs and Excise or the Immigration authorities.
Nothing could be further from the truth. By law, all Money Transmitters are required to send your Registered Client Number with each transaction, but all other information is kept here in the UK under lock and key. As companies registered here in the UK, Money Transmitters are required to comply with The Data Protection Act, 1998, which specifies that none of their clients’ information can be passed to a third party.
Registered Operators – the best route for your money
All bona fide money transmitters are registered. This means that they abide by UK and European laws and their Banks are fully aware of the work they do. There are however a number of money transmitters who are not regulated and who operate ‘under the radar’. Be wary of these transmitters. Many people have been taken for a ride and lost a great deal of money as a result.
Be wise; ask your money transmitter for their Registered Number. If they cannot give you one, don’t use them. Before using a new one, check them out too. You can always check whether they are members of the UK Money Transmitters Association by visiting the UKMTA website at www.ukmta.org/members.htm . All members of the UKMTA are registered transmitters.
Have confidence in your transmitter Don’t be concerned about passing your details on to them when requested, they are simply following the law. Help them to help you and keep the money transmission routes to Zim safe.
Post published in: News