Central Bank issues official remittance licenses to money changers

The Central Bank of Myanmar (CBM) has issued remittance licenses to five Myanmar-registered companies, permitting them to handle overseas money transfers, and plans to issue more licenses to those that meet the requirements, said U Soe Min, Vice Governor of the CBM.The licenses, issued with the aim of discouraging illegal retail cross border transfers, have been issued to Top Shine Money Changer & Gold Trading, OK Money, Wakhema Money Changer, Ok
Zune and 2C2P.

“We have received more applications and will issue the licenses accordingly. This is for official remittance businesses and to enable people working overseas to officially transfer money back home,” he said. However, the service is only for individuals living and working abroad. Those transferring money for trade and business purposes should do so via official banks and not from this channel, the CBM said. Myanmar to quarantine or turn back tourists from 5 countries.

To qualify for the remittance license, applicants must be a registered company and open a deposit account with a minimum of K100 million, officially earned and taxed, at a bank which has a license for foreign currency management.
Currently, the majority of Myanmar workers overseas transfer money home via illegal Hundis. Now, they will be able to officially remit funds into Myanmar via the licensed banks and money changers, which is safer and cheaper.

Money remittance will also be faster and with more licenses, people will be able to transfer money into Myanmar from overseas more efficiently.Last month, Myanmar’s Kanbawza (KBZ) Bank and Malaysia-based cross-border payments provider Tranglo formed a remittance partnership to facilitate inbound money transfers directly into the accounts of KBZ Bank customers.The service, which has been approved by the Central Bank of Myanmar, allows Myanmar citizens working in Singapore, Malaysia and South Korea to send money home.

The World Bank estimates that more than US$3 billion was formally remitted by Myanmar migrant workers in 2019, approximately 4.6 percent of Myanmar’s GDP.Myanmar to quarantine or turn back tourists from 5 countries.Before the pandemic, there were around 4 million Myanmar migrant workers stationed overseas, both officially and unofficially. – Translated

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Source : Myanmar Times

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