1. Global Forum on Remittances
and Development 2015
Milan 16-19 June 2015

2. G20 Historical Agenda on Reducing
Cost of Remittances
 In July 2009, at L´Aquila summit, the G8 made a pledge to achieve in
particular the objective of a reduction of the global average costs of
transferring remittances from 10% to 5% in 5 years (5x5 Objective).
 The World Bank was asked to create the Global Remittances Working
Group (GRWG) to facilitate and coordinate international efforts to
make remittance markets more efficient and reduce the cost.
 GRWG was created in February 2009 as a multi year platform to provide
guidance and policy options to the community.
 In 2008 the World Bank began to survey and publish the prices of
remittances worldwide through the Remittance Prices Worldwide
database (RPW).

3.  In 2010 Seoul Summmit, the G20 committed to a
significant reduction in the cost of remittance.
 In 2011 Cannes Summit, the G20 further defined their
commitment in the reduction of the cost of remittances
by formally including the «5x5 Objective»
 2011 Report of the Development Working Group (DWG)
developed a toolkit of measures that have proven to be
effective in reducing remittance costs.
G20 Historical Agenda on Reducing
Cost of Remittances-2

4.  In 2014 Brisbane Summit, leaders made a recommitment
for reducing remittance costs.
 Financial Inclusion Action Plan (FIAP) which provides a
framework for the works to be undertaken over the next
five years was updated.
 A Plan to Facilitate Remittance Flows, guiding to the
Works on evidence based new policies was issued.
2014 Works on Remittances

5.  The template of the country plans was discussed and
agreed at the first DWG meeting.
 Members provided an overview of their country plans,
and peer support arrangements were discussed at the
second DWG meeting.
 Peer support arrangements have been designed to seek
the opportunity of sharing knowledge and expertise,
ensuring technical input from the GPFI and its
implementing partners
The Progress Achieved in 2015

6.  Peer support group teleconferences took place in May. The
groups were established according to geographical regions
and remittance corridors.
 Group A: Australia, China, Indonesia, Japan and Korea.
 Group B: Argentina, Brazil, Canada, Mexico and USA.
 Group C: EU, India, Saudi Arabia, South Africa and UK.
 Group D: France, Germany, Italy, Russia and Turkey.
 Teleconferences have been beneficial for all members by
giving the opportunity to share draft country plans in advance.
Peer Support Group Teleconferences

7.  Following the teleconferences, draft country plans have
been submitted to us.
 They have been circulated to members and related parties
as of 2 June, 2015.
 Draft plans focus on mostly;
 Increasing competition
 Regulation
 New entrance to the market
 Enhancing transparency
 Consumer protection regulations
 Price comparison websites
 Improving Infrastructure and new technologies
Draft Country Plans

8.  The plan focuses on three components:
 Improving transparency: Fees charged by each bank for
transferring a particular amount of money will be disclosed on
the website of Banking Regulation and Supervision Agency.
 Increasing competitiveness: The new law will contribute to
the entrance of non-bank payment service providers into the
formal remittances market.
 15 applications have been received so far,
 2 of them were GSM operators
 Facilitating the use of new technologies: With the
enforcement of new regulation, private sector is expected to
accelerate their efforts on creative technology solutions
Turkey’s Country Plan

9.  Banks’ de-risking activities, including in relation to MTOs
that provide international remittance services, have been
reported.
 G20 asked the World Bank to perform a survey on the de-
risking issue.
 Data will be collected from 19 member countries on the
key drivers and outcomes of the de-risking activities,
specifically as they may affect international remittance
flows.
De-risking Issue

10.  The plans expected to be finalized in advance of the
fourth Development Working Group meeting and
submitted to us by September 3rd.
 The fourth DWG meeting will take place on
September 14-16.
 The final country plans will be submitted to Sherpas
for consideration at their meeting on October 13-14
Our Work Plan for the Near Future

11.  The mechanisms to monitor ongoing implementation
of country plans should be identified by the GPFI.
 Analytical advice on the impact of country plans
should be provided by relevant international
organizations.
Monitoring Country Plans