Money transfers under fire

Money transfers under fire

It means lower costs for immigrants sending money home, but is also a weakness that could assist drug traffickers and terrorists and now money transfers are harder to come by. Many of the big banks in the US are cutting back on the practice, especially for low-cost deals. Those sending money home to Mexico, other Latin America countries and Africa will be hardest hit by the curbs by banks. Although money transfer businesses like Western Union will pick up the business, with banks not acting as middle-men on the deals, the costs will almost certainly rise. This is in sharp contrast to a report from the World Bank that reported a drop in the cost of transferring funds internationally. Some experts say that banks are being forced into a policing role by increasingly tough regulations prompting them to make these kinds of business changes. Read the full story.