Why Is It So Hard To Send Money To the Philippines?
Trade between the US and the Philippines has been lucrative for more than a century, with the past decade seeing a massive expansion. However, there are still several challenges businesses and individuals trying to send money to the Philippines face.
Why Is It Challenging To Send Money To The Philippines?
Trade between the two regions is radically booming, and their import processes aren’t quite exhausting. However, just like most other small economies, sending money to the Philippines comes with a set of challenges. Here are some reasons why.
- Large Volumes of International Money Transfers
After China and India, the Philippines is the third largest receiver of international money transfers. While the sheer volume may bring simplicity to the process, it also comes with its share of problems. For example, the large volume cultivates a culture of excessive fees, obscure practices, and baggy transactions.
- Strict International Transfer Regulations
The Philippines was once a site for money laundering schemes and large bank heists. A good example is the $81 million Bangladesh Bank Fund Heist that occurred in 2016. During this time, the Philippines Anti-Money Laundering Act (AMLA) hadn’t included casinos, making it easy for the money to be transferred out of the country without tracking.
In response to such incidences, the AMLA acted to seal all loopholes and keep money flowing in and out of the Philippines under close watch. According to the updated AMLA rules and regulations, every wire transfer into and out of the country must include:
- Originator’s name
- Address, date of birth, and national identity number of the originator
- A unique reference number, or the account number
Adhering to all these rules sometimes makes sending money to the Philippines quite lengthy and hectic.
- High Costs of Transaction
Businesses using traditional and bank wire transfers when sending money to the Philippines often fall prey to explicitly low exchange rates and concealed currency conversion costs. Similarly, banks charge high fees for direct international transfers.
Additionally, international wire transfers pass through several intermediate banks. In return, you’ll face more fees each time your money changes virtual locations. These costs make the whole transaction expensive and may hinder many people aspiring to do international transfers.
What Are The Best Ways To Send Money To The Philippines?
Sending money to the Philippines via bank transfers is very costly. That’s why most businesses and individuals transferring their funds to this destination prefer digital money transfer service providers. Unlike the banks, these services cost low transfer fees, and their conversion rates are more favorable.
These providers are numerous and operate differently. As a result, you have more choice on how fast you need the money delivered, mode of delivery, and fair costs. However, it’s still essential to shop around for the best exchange rates, convenience, and fees. That will help you get to a provider who answers your needs but doesn’t cost you much.
For example, you may want to try Western Union or MoneyGram if you want the cash delivered to a pick-up location. Similarly, TransferWise, TransFast, and Rea Money Transfer are the best options if you’re looking for a cheap transfer, while PNB, Xoom, and TransFast will sort you with speed.
Sending money to the Philippines may be a challenge, mainly if you use banks. That’s why you may want to try the digital options for quick and cost-effective transfers.