1.
March 4, 2011
Via mail and email: info@fcac‐acfc.gc.ca
Ursula Menke
Commissioner
Financial Consumer Agency of Canada
427 Laurier Avenue West, 6th Floor
Ottawa, ON K1R 1B9
Dear Ms. Menke:
I am writing on behalf of the 54,000 members of the Canadian Union of Postal
Workers to express our support for regulation of remittance services.
Immigrant and migrant workers send over $12.2 billion per year in remittances to
support their families. A report from the Inter‐American Development Bank
found the typical cost of transmitting $200 in remittances (including transfer fee,
exchange rate commission, check cashing fees, and other charges at the point of
receipt) is estimated at approximately $25 or 12.5%.
This is far too high. We want regulation on remittance transfers charged by banks
and Money Transfer Organizations, including Moneygram to be no more than
5% of the amount remitted. This is in accordance with recommendations made by
the G‐8.
CUPW also requests full disclosures on the cost of remittance payments by banks
and Money transfer organizations.
Canada Post offers remittance services through Moneygram. The Canadian Union
of Postal Workers believes that Canada Post, with a presence in most communities,
is in an ideal position to be the provider of choice for this service. We want to be
able to encourage people to use this service. However, the rates charged are still
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2. Ursula Menke .2
March 4, 2011
well in excess of the 5% of the amount remitted. This is a financial hardship on
many people sending remittances.
We are concerned about the high rates and fees charged on remittance services,
and the surprising lack of regulation on the providers of these services, especially
banks and money transfer organizations.
We strongly support the campaign of ACORN Canada and ACORN International
for a safe, secure and low cost remittance service.
The Canadian Union of Postal Workers awaits your response.
Yours truly,
Denis Lemelin
National President
cc. UNI
ACORN Canada
/rgcope225