Protecting the West, Excluding the Rest: The Impact of the AML/CTF Regime on Financial Inclusion in the Pacific, and Potential Responses

33 Pages Posted: 26 Feb 2016 Last revised: 24 Mar 2016

Ross P. Buckley

University of New South Wales (UNSW) - Faculty of Law

Rebecca Stanley

King & Wood Mallesons

Date Written: January 25, 2016

Abstract

Financial inclusion is an important international policy goal. Remittances promote financial inclusion by contributing almost half a trillion dollars to the economies of developing countries each year and by giving people a strong reason to engage with formal financial services. In the Pacific, remittances represent a significant proportion of many countries’ GDPs. The G20 has committed to reducing the global average cost of sending remittances to 5%. At the same time, financial service providers are facing increasingly onerous regulatory requirements to combat the global rise in money laundering and terrorism financing. In Australia, these requirements have led to the bank account closures of many money transfer operators, posing a real risk to financial inclusion, growth and stability in the Pacific. This paper examines the G20’s goals for financial inclusion, the role of remittances in achieving these goals for the Pacific region, and the impact of AML/CTF regulations on the Australian remittance industry. A number of solutions are proposed to address the challenges facing the remittance industry in Australia.

Suggested Citation

Buckley, Ross P. and Stanley, Rebecca, Protecting the West, Excluding the Rest: The Impact of the AML/CTF Regime on Financial Inclusion in the Pacific, and Potential Responses (January 25, 2016). CIFR Paper No. 093/2016; UNSW Law Research Paper No. 2016-16. Available at SSRN: https://ssrn.com/abstract=2738330 or http://dx.doi.org/10.2139/ssrn.2738330

Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia

Rebecca Stanley

King & Wood Mallesons

20th Floor, East Tower, World Financial Center
1 Dongsanhuan Zhonglu
Beijing, Chaoyang District 100020
China

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