Remittances: recommendations for sending safely

The remittances They have been a lifesaver for many families that depend on financial transfers sent by their relatives from abroad, especially useful for developing countries such as the Peruwhich shows the popularity and efficiency of this financial tool.

In our country, the remittances from Peruvians residing abroad reached US$3,592 million in 2021, the highest value since records began; according to the Central Reserve Bank of Peru (BCRP)

This amount represented a growth of 22.1% compared to 2020 (8.0 percent versus 2019) and was equivalent to 1.6 percent of GDP.

According to world Bankthe remittances showed a surprise increase globally in 2021, with a growth of 7.3% to reach US$589 billion globally, with Latin America being the region that registered the largest increase with 21.6% and with the record number of US$ 126,000 million dollars.

This did not reflect a qualitative change in terms of gender; According to data released by XCOOP, a platform for cross-border money transfers in Latin America that rewards the service to the end user, women were only responsible for a third of the remittances sent in the region.

“We believe that the ease provided by digital money transfers to other countries will be key to greater financial inclusion of women in our region,” said Ana Chaher, CEO of the XCOOP platform.

For its part, the World Bank expects the flow of global remittances by 2022 to increase by 2.2% to reach US$565 billion.

How to send remittances safely?

It is important to know the proper way to send remittances, to avoid scams and guarantee receipt of the money at the point of destination. Here, we share four recommendations to do it.

• Compare prices and commissions between the various services: Before sending money, you should investigate the different companies that provide this service.
• Verify the reliability and legality of the company: It is vital to ensure that the remittance company is properly registered with the regulatory government institution of the country. In this way, the user will be able to know that it is a reliable and formal company and that, in the event of any inconvenience with the transaction, there will be official support from the State that will protect your interests and claims.
• Find out the particularities of sending remittances to the country of destination: Each country has its own regulations and particularities, therefore, it is important to know the commission that will be charged, the time in which the money will be received by the recipient, the existence of taxes, the exchange rate, among others.
• Know the guarantees and return policies: It is important to be clear about the guarantees, return and cancellation policies of the company chosen for sending remittances, because in the event of any eventuality that may arise, you will be informed of the processes to follow for the return of the money and you will not be harmed.