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					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        general@sendmoneyhome.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.

				
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