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The Canada-Caribbean Remittance Corridor
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According to the Bank of Jamaica (BOJ), remittance flows from Canada to Jamaica amounted to US$135.5 million in 2007, accounting for 7 percent of the overall remittance inflow reaching Jamaica during the same year. The DEC estimate for the same corridor is much higher (US$217 million). Again, the latter study captures both formal and informal flows, while the former is based on reported data from financial institutions and remittance companies strictly based on the formal flows. Informal flows may not account for the difference between the two figures, but it could certainly be one of the factors. For Haiti, the World Bank T4 estimates stand at US$73.6 million. There is no official comparative Haitian data, but there are some research-based estimates. For example, Orozco (2006) estimates that the bilateral remittance flow between Canada and Haiti is somewhere between US$65–75 million. In Canada, however, the 2006 Census data and the 2005 CERLAC survey of the Haitian population suggest that the flow exceeds Can$82 million (see Chapter 3). These estimates are based on surveys, and on income and migrant stocks. While they have some variances, when compared to available official recorded data they can provide a useful benchmark for understanding potential size of informal flows. While these estimates and figures can provide ideas about the potential size of remittance flows, a caution should be exercised in reading these figures. Informal Flows. Because remittance flows through RSPs are not recorded, it is equally challenging to estimate the size of informal flows out of Canada. The result is that surveybased estimates of remittances, which often capture both formal and informal flows, cannot be compared against official data. In addition, in Canada, RSPs were only recently brought under the registration scheme (June 2008) and thus it is still too early to assess whether there are still significant unregistered RSPs operating. This is certainly an area where further data collection and research are needed.
Legal and Regulatory Framework for Remittance Service Providers in Canada In Canada, Money Transfer Operators (MTOs) and their agents are regulated under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Canada’s Financial Intelligence Unit (FIU), the Financial Transactions Reports Analysis Centre (FINTRAC), was created to detect and deter money laundering and terrorist financing by providing information to support the investigation or prosecution of money laundering offences. FINTRAC is responsible for administering and supervising compliance with the PCMLTFA requirements for financial entities, which, include MTOs, defined in the PCMLTFA as money service businesses (MSBs). Money service business is a broad term that covers: ■ Foreign exchange dealing; ■ Remittance and transmission of funds by any means or through any individual, entity or electronic funds transfer network, including alternative remittance systems; and ■ Issuance or redemption of money orders, traveler’s checks or other similar negotiable instruments.