somali 02-08 1/4/08 11:23 am Page 1 Sending money Loyalty Cards March 2008 The process of sending money to Somalis in the Horn of Africa is Some Somali remittance firms offer special deals such as loyalty straightforward and the first step is to decide which company is the schemes. These cards can allow you to save money on the fee best for you. charged for sending your money. For example, they can allow you to collect points whenever you send money. Once your points reach a When you visit the money transfer agent they will take your details certain amount, you may receive a discount on the fee charged. For including your telephone number and address. future transfers, you will most likely need to have ID and proof of The agent will also take the name telephone number and address address when registering for this type of card. Ask your agent if they Send money home have such a card/programme you can take advantage of. of the person you are sending money to. If the person does not have a telephone number the agent will take their clan details. UK to Somalis in the Horn of Africa Reduced Commission for Charity You will need to provide formal identification (ID) when sending Nearly all Somali money transfer companies charge a reduced rate for amounts more than £650. funds sent to a charity in the Horn of Africa or funds sent from a charity in the UK. This rate varies between 0% and 2%. You will pay the agent, either in cash, by debit card or by credit card. If things go wrong If you pay in GB£ then the money will first be converted to US$ at Always keep hold of your receipt/proof of sending, which you should a specific exchange rate set by the agent. take to the same firm or agent that you used to send the money. If the problem is not resolved with the remittance firm, there are a number The exchange rate offered can be a hidden cost, so make sure of dedicated customer service pages at www.sendmoneyhome.org you are getting a favourable one. You can always exchange your that offer advice and a list of organisations that may be able to help. pounds into US dollars at a currency exchange agent first if they offer a better exchange rate than the money transfer agent. HM Revenue and Customs regulate all Money Transfer Operators at (0845 010 9000 or www.hmrc.gov.uk). The national enquiries help line You will then be charged a fee for sending the money to the Horn is open 8am to 8pm Monday to Friday. To enquire about a specific of Africa. This is usually 5% for amounts up to approximately £500. agent you will need to provide them with Money Services Business The money should be available to be picked up within 24 hours (MSB) number and the company's registered name and address which HM Revenue and Customs require before they can help. It is best to ensure that when your money is collected that whoever picks it up has identification or are accompanied by a clan elder. This In addition, if you believe that a provider is operating illegally, HM is not always crucial but will ensure there is no delay in collecting their Revenue and Customs provide a Customer confidential free-phone Free, independent advice to let you know funds. number, 0800 595000, where you can leave information concerning the best way for you to send money home. This leaflet shows the financial provider in question. there are a range of products and services to choose from. Provider information If you suspect a company of money laundering you can also call the After the money has been handed over to the agent, they deposit the Financial Services Authority (FSA) who can be reached on 020 7066 cash into their company’s UK bank account to be transferred to the 1000. company bank account either in Dubai or Djibouti. At the same time Information in this leaflet, as well as other countries covered in the agent faxes or e-mails information to a clearinghouse, including The Office of Fair Trading may also be able to help you. You can first call the Consumer Direct Line on 08454 04 05 06. You may then be the ‘send money home’ project can also be found at: the amount, the sender, the recipient and instructions on where to deliver. The clearinghouse contacts the money transfer agent closest instructed to contact your Local Trading Standard office whose to where the recipient lives and delivers the cash in U.S. dollars. The number can be provided by the Consumer Direct Line. www.sendmoneyhome.org recipient of the money is telephoned on their mobile by the receiving agent to tell them that their money is available for collection. New leaflets with updated information will be printed regularly, so Disclaimer please keep an eye out for them. If you have any information you Consumers should never use any of the services mentioned here solely on wish to share with us, please call 0845 004 2432 or email the basis of the information we provide. The details in this leaflet on firstname.lastname@example.org. money transfer products are provided by the money transfer operators, but may not be entirely accurate or up to date, and are subject to change. Consumers should always take the exchange rate into account as well as the transfer fee. Consumers should always check information with the provider The UK Government has supported this leaflet and the website to before using any of the services mentioned. help you compare services and choose the deal that is right for you. Further information is available at Funded and supported by www.sendmoneyhome.org somali 02-08 1/4/08 11:23 am Page 2 Remittances and Somalis in the Horn of Africa Cost of sending £25 Cost of sending £50 You work hard for your money and the funds you send to your family and friends or for business and investment purposes are extremely Exchange important. Therefore, it is essential that your money reaches its Exchange Transfer Transfer * Rate Final amount Transfer Transfer * Rate Final amount Provider destination safely and quickly. Provider time fee £ 1GB£ to US$1 received in US$ Provider time fee £ 1GB£ to US$1 received in US$ Dahabshiil same day 1.25 1.97 49.25 Dahabshiil same day 2.50 1.97 98.50 This leaflet and the information on www.sendmoneyhome.org offer Qaran Express same day 1.25 1.97 49.25 Qaran Express same day 2.50 1.97 98.50 you clear advice on how to send your money and compare the costs Amal Express same day 1.25 1.97 49.25 Amal Express same day 2.50 1.97 98.50 and services of providers side by side. Mustaqbal same day 1.25 1.96 49.00 Mustaqbal same day 2.50 1.96 98.00 Using the tables Amana Express same day 1.25 1.97 49.25 Amana Express same day 2.50 1.97 98.50 The tables in this leaflet give you a guide to the fees that the various Hodan Global Money Service same day 1.25 not available - Hodan Global Money Service same day 2.50 not available - providers charge and let you know roughly how much the recipient Olympic Money Transfer same day 1.25 not available - Olympic Money Transfer same day 2.50 not available - can expect to receive taking into account the fee and the exchange Iftin Express same day 1.25 1.96 49.00 Iftin Express same dau 2.50 1.96 98.00 rate. Tawakal Express same day 1.25 1.97 49.25 Tawakal Express same day 2.50 1.97 98.50 Kaah Express same day 1.25 1.96 49.00 Kaah Express same day 2.50 1.96 98.00 Channels used to send money to Somalis in the Horn of Africa The main channel used by those sending money is through specialised Somali Xawaalad (Hawala) remittance firms who channel nearly all of the money from Diaspora in the UK to Somalis living in the Horn of Africa. Cost of sending £100 Cost of sending £1000 Between them, they have numerous locations across the United Exchange Exchange Kingdom and serve the Somali market well by having many agents Transfer Transfer * Rate Final amount Transfer Transfer * Rate Final amount located in most areas with a significant Somali population. Provider time fee £ 1GB£ to US$1 received in US$ Provider time fee £ 1GB£ to US$1 received in US$ Dahabshiil same day 5.00 1.97 197.00 Dahabshiil same day 30.00 1.97 1970.00 It usually does not take more than 24 hours for the money to be Qaran Express same day 5.00 1.97 197.00 Qaran Express same day 30.00 1.97 1970.00 available to be picked up by the recipient. Amal Express same day 5.00 1.97 197.00 Amal Express same day 30.00 1.97 1970.00 Usually the agent will call the recipient to notify them that the money Mustaqbal same day 5.00 1.96 196.00 Mustaqbal same day 30.00 1.96 1960.00 is ready to be picked up. Amana Express same day 5.00 1.97 197.00 Amana Express same day 30.00 1.97 1970.00 Hodan Global Money Service same day 5.00 not available - Hodan Global Money Service same day 30.00 not available - Bank to bank transfers to the Horn of Africa and newer technologies such as prepaid cards are not always possible since these require Olympic Money Transfer same day 5.00 not available - Olympic Money Transfer same day 30.00 not available - an established banking system and infrastructure in the areas where Iftin Express same day 5.00 1.96 196.00 Iftin Express same day 30.00 1.96 1960.00 Somalis generally live. Tawakal Express same day 5.00 1.97 197.00 Tawakal Express same day 30.00 1.97 1970.00 Kaah Express same day 5.00 1.96 196.00 Kaah Express same day 30.00 1.96 1960.00 Where can your money be picked up? When you send your money to, one of the most important factors when deciding who to use, is where the money can be collected. If the person you are sending money to has to travel several hours to Where can your money be picked up? pick it up, it might be worth sending the money with a different provider, closer to their home. Informal versus formal transfers The table on the right shows the number of agents and where the Outlets in Outlets in Member of Sending money home with close friends or relatives is a legal method money can be collected from. This list is not comprehensive but if Provider the UK Somalia Organisation LC for a reasonable sum of money (HM Revenue & Customs allow an you speak to your preferred provider they will be able to tell you Dahabshiil 130 130 SOMTA Yes individual to carry up to a maximum of £7,500 in cash). It is essential exactly where the money can be collected. Qaran Express 64 66 SOMTA ND in these situations that the sender trusts the person they have asked Amal Express 17 15 SOMTA ND to take the money to deliver it safely to the recipient. There are no Key guarantees or protection with informal arrangements such as these LC - Loyalty Card Mustaqbal 49 8 SFSA ND Amana Express 27 106 SFSA No and of course there is the general safety aspect of carrying a large SOMTA - Somali Money Transmitters Association amount of money on your person. SFSA - Somali Financial Services Association Hodan Global Money Service 4 ND ND ND US$ - Exchange Rate, your money is exchanged into US$ before Olympic Money Transfer ND ND SFSA ND being transferred. Please check the exchange rate at the time of sending, Somali remittance firms offer security and competitive fees for sending Iftin Express 57 83 SFSA No those published are from 28 February 2008 for guidance purposes only. money. They also offer convenience with many branches and/or * - Assumption that the fee is paid on top of the amount sent Tawakal Express 25 82 SFSA ND agents in the UK and in the Horn of Africa as well as knowledge that ND - Not Disclosed Kaah Express 15 ND SFSA ND the money can be collected within 24 hours.