Canadian residents who use commercial money transfer services to send funds to family members back home are paying unreasonably high fees, says a non-profit that represents low-income families.
According to ACORN Canada spokesperson Pascal Apuwa, fees levied on international money transfers can be as high as 20 to 25 per cent.
"We are demanding that these agencies reduce their charges and we are asking the government to regulate them," says Apuwa.
According to a spokesperson for the Financial Consumer Agency of Canada, there are currently no federal regulations on money transfer fees.
Remittance payments, the term used to describe money that foreign workers send back to their countries of origin, are not only vitally important for the individuals who receive them, says Apuwa, but also constitute a significant flow of funds to developing countries around the world.