British commercial banks have become reluctant to provide remittance services to Bangladeshi banks and money transfer agencies operating in the United Kingdom,
said the chief executive of a leading agency based in London.
The situation could cause the remittance inflow from the UK to fall as the non-resident Bangladeshis there might face trouble in sending money home, KMB Enterprise Money Transfer Ltd managing director Kamru Miah informed New Age over telephone and by email.
Barclays Bank Plc, which deals with around 90 per cent of the money remitted to Bangladesh on behalf of the UK-based Bangladeshi money transfer agencies and banks, already has adopted a corporate policy of withdrawing its services offered to small and medium money remittance companies that operate in a single corridor and deal entirely in cash or both cash and kind.
‘Under the circumstances, all Bangladeshi money transfer companies and banks are facing an imminent threat of closure, unless they secure money remittance services from other high-street banks in the kingdom,’ said Kamru.
He said, ‘I have been using a Barclays Bank account for seven years for remitting money to Bangladesh. But I won’t be able to send money through it as the bank has informed me that it is going to wrap up its services provided to us within 60 days.’
‘I’m not aware of the reasons that have forced Barclays Bank to take such a decision without consulting my firm,’ he added.
Every month, his company has been making all its remittances to the tune of $5 million to $10 million to Bangladesh through the Barclays account, said Kamru.
Bangladeshi money transfer agencies in the UK have to open accounts with local banks to remit money to Bangladesh on behalf of expatriate workers and NRBs.
The latest central bank data shows the UK is one of the top-10 money remitting countries to Bangladesh. Of the $11.12 billion inbound remittance recorded in the first nine months of the current fiscal year $777.65 million had come from the UK.
The UK accounted for $987.46 million of the total $12.84 billion remitted to Bangladesh in FY2011-2012.
‘Not only me, most of the money transfer companies and banks have received the same notice from Barclays Bank and are going to face the same situation as they use Barclays accounts to send money to Bangladesh. About 80 to 90 per cent remittance from the UK goes through the Barclays channel to Bangladesh,’ said Kamru.
Barclays Bank in its notice has given Bangladeshi banks and agencies 60 days’ time to find alternative money transfer service providers. So, they have contacted most of the high-street banks, ‘but they also expressed their disinclination to offer the services to companies like ours,’ he said.
At present, 12 Bangladeshi bank branches and 14 money transfer agencies are offering money remittance services with the help of local banks to Bangladeshi expatriate workers and NRBs in the UK.
More than 2,000 agencies are also working as representatives of the Bangladeshi banks and money transfer companies across the kingdom.
-With New Age input
