Vietnamese migrants from around the world send about 10 billion dollars to families back home every year.
About 10 per cent of this amount comes from Australia.
There are many ways of transferring money overseas.
Using a bank is one of the easiest ways of sending money overseas but it is also the most costly.
Every Australian bank will charge a different fee for their services.
Usually it’s between $10 and $32 for each money transfer.
When it comes to sending smaller amounts of up to one-thousand dollars to family and friends, cheaper options are ‘non-bank’ money transfer companies.
Their transfer fees vary between $0 and $15 for small amounts.
However,the transfer might take longer because setting up an account and getting approval can take a few days.
Another important factor to consider is the daily exchange rate between the Australian dollar and other currencies.
Warren Day, Regional Commissioner Victoria of the Australian Securities and Investments Commission says, a good exchange rate means more money for those who need financial support.
He says there are few complaints about money transfer operators in Australia, but customers should always take care.
“Make sure you do your research before using a money transfer service because if you’re not careful you could fall victim to a money transfer scam and it’s almost impossible to get your money back.”
Sending money through a ‘non-bank’ transfer service is not difficult and only requires a check of identity.
Once the identities of the sender and the recipient have been established, the actual money transfer only takes minutes and all fees are paid by the sender.
But what happens if the money sent never arrives?
Warren Day says the first complaint should go to the company that handled the money transfer.
“If they are not able to find your money or you’re not satisfied with the response you’re getting from them, you can complain to the financial ombudsman service.”
Different transfer agencies have different limits on the amounts of money they allow customers to send overseas.
However, under current Federal legislation, all Australian financial institutions are required to report cash transactions of $10,000 or more, including details of the relevant account holders, to the regulator AUSTRAC.
The Australian Transaction Reports and Analysis Centre monitors financial transactions to identify instances of money laundering, organised crime and tax evasion.
