The cost of sending funds from Australia to other parts of the world is 11% higher, based on ACCC data
The banking sector is still reeling from a series of investigations involving a bribery ring
Australians have sent complaints to the watchdog
The Australian Competition and Consumer Commission (ACCC) recently launched an inquiry involving money transfer services and the expensive fees they charge to customers. The investigation is adding more pressure on Australia’s international money transfer and banking industry, according to reports as it is already engulfed in misconduct cases. The watchdog told reporters on Tuesday that it is investigating the price competition among currency exchange providers. What sounded the alarm is the cost of sending funds from Australia to other nations. It is noted by the ACCC that charges are 11% higher than average as compared to other G20 countries.
“Complaints have been made about a number of suppliers, including the big four banks, a number of online transfer companies, Travelex, Western Union and PayPal”, the regulator said.
The inquiry will concentrate on currency exchange, international money transfers, and the possible “impediments to effective price competition”. Based on a statement released by the organisation, this includes barriers to entry and other issues.
News of the investigation has hit the Australian finance sector while its banks are still dealing with allegations of misconduct. In the latter part of September, the banking royal commission said that the sector is driven by greed and that regulators did not take action in punishing alleged misconduct.
In March 2018, the banking royal commission dealt with a bribery ring involving multiple National Australia Bank branches. Evidence showed that certain NAB employees forged documents so that clients could secure loans. The bribes were paid in cash, according to court accounts.
Get money transfer news updates by checking this link regularly.
