To all our valued clients,
Exchange4free would like to take this opportunity to explain the current situation in the Australian money transfer industry with regards to bank accounts.
There is a drive by Australian banks to close the operating bank accounts of all MSB’s in Australia.
Please read the below articles for more information:
AUSTRALIA ATTORNEY GENERAL’S DEPARTMENT LETTER
FINCEN – SANITY REQUIRED OVER TERMINATION OF MSB ACCOUNTS
As you know, Exchange4free have had to change back accounts 4 times in the past 6 months.
There is a major challenge in the money transfer industry both within Australia and worldwide where banks will no longer offer banking facilities to ‘Money Service Businesses’. This is due to a combination of perceived money laundering risks within our industry but also perhaps an opportunity for the banks to shut down the competition.
The big 4 banks in Australia will no longer bank Money Service Businesses and the problem is further exacerbated by the fact that almost all small banks in Australia are owned by the big 4 banks.
This issue is affecting the entire money transfer industry in Australia to the point that these MSB’s are in the process of forming an association to fight these closures. This issue is my no means unique to Australia and is taking place worldwide in the USA (MSB’s cannot get accounts with any bank at all), Canada (perhaps only one bank in Canada servicing our industry), UK (Barclays closed around 300 MSB bank accounts last year and HSBC no longer serve any MSB’s whatsoever) and other countries.
Exchange4free are working extremely hard to secure a stable bank account in Australia but we have had the unfortunate experience of both Bendigo and P&N Bank closing our accounts with very little to no notice whatsoever. However please note we do still have an account through Earthport at Westpac Bank, and so our money transfer service is still available out of Australia.
We apologise for the inconvenience but hope the above helps explain the challenges that are affecting all MSB’s in Australia and worldwide at the moment.
We hope to keep you updated as best we can, making big financial decisions as easy as one, two, pay me!