EC$151.9 million received in remittances

by Linda Straker

• 2019 money transfer inflows EC$151.9 million; outflows EC$55.2 million
• Money Services Businesses operators subject to GARFIN’s regulatory procedures
• Only 2 companies licenced to conduct money transfer activities

Grenadians received EC$151.9 million or US$56.3 million in remittances for the year 2019 from the 2 companies whcih are licenced to conduct money transfer activities under the Money Services Businesses (MSB) legislation. In 2018 the amount received was US$55.4 million and in 2017 the amount was US$52.2 million. A reduction is expected for 2020.

Based on data reported to the Grenada Authority for the Regulation of Financial Institutions, “Total remittances flowing into Grenada in 2019 through the money transfer operators amounted to EC$151.9 million while total outflows amounted to EC$55.2 million.”

Money transfer services is one of the subtopics in the 2019 annual GARFIN report which was recently tabled in the Lower House of Parliament and has since become a public document. The Report which also includes the Authority’s financial statement said that are only 2 companies licenced to conduct money transfer activities on the island.

“MSB operators are subject to GARFIN’s regulatory procedures including both offsite and onsite supervision as all other regulated entities,” said the report which was laid in the House by Leader of Government Business and Finance Minister Gregory Bowen.

Recently published documents of the World Bank and IDB said that the United States is currently the largest source of international remittances in the world and the remittances in 2020 to low- and middle-income countries are projected to fall by 7.2%.

“These projected declines are among the sharpest in recent history. According to the World Bank, this fall is largely due to the economic crisis caused by the Covid-19 pandemic; for migrant workers, the pandemic has meant a fall in wages and employment,” said the report which was published by the IDB Lab.

IDB Lab is the innovation laboratory of the IDB Group, the leading source of development finance and knowhow for improving lives in Latin America and the Caribbean (LAC). IDB Lab mobilises resources to develop innovative projects and early-stage ventures with a potential for impact and great scale, benefiting populations that are vulnerable due to economic, social, or environmental factors. As of 29 October 2018, IDB Lab is the new identity of the Multilateral Investment Fund.