People send money abroad for various reasons. Many do it for business purposes, like paying for wages of offshore workers, buying goods from a supplier abroad, or even visiting UAE for a while and wanting to send money to a friend living in Bangladesh.
Meanwhile, others have more personal reasons, like supporting their families in their home country.
Either way, sending money is a crucial activity you must take seriously.
If you’re planning to send money to Bangladesh, you must ensure that you do it right. This will allow you to prevent potential hiccups and avoid costly mistakes, like falling for scams and being involved in criminal activity unwittingly.
This guide will teach you the four vital tasks you must undertake when sending cash to Bangladesh.
1. Know the Legalities First
First, you must read up on laws covering money remittances to and from Bangladesh. Determine how everything should work, from start to finish.
During your research, you will also encounter legal documents that show authorized dealers and money changers in the country. Be sure to use them to guide your decision-making process.
Aside from that, you will also notice a few details that are unique to the country. In Bangladesh, the national banking authority has issued a circular indicating more relaxed policies for citizens not residing there.
According to this latest policy update, non-resident Bangladeshis don’t have to present documents when sending more than $5,000 to a recipient in the country.
This is in line with another recent update that incentivizes inward money remittance to encourage more cash inflow.
For this new rule, Bangladeshis who receive money from friends and family abroad will get an additional 2.5 percent on top of the amount they were sent from the Bangladesh government.
But while the sender doesn’t need to present any documents, the recipient will be asked for the following papers before they can get the cash:
- Remitter’s passport
- Employment confirmation (e.g., a letter from the employer, appointment letter, or the like) or a certificate from the Bureau of Manpower, Employment, and Training (BMET).
Meanwhile, entrepreneurs will be asked to provide a copy of their business license.
2. Research Exchange Rates and Other Fees
After reviewing the remittance’s legalities, you must check the exchange rate, service charges, and other fees paid.
You shouldn’t be looking for a money remittance partner yet, though you can take note of a few potential candidates.
This step aims to understand the whole exchange rate and charges situation better. This way, you’ll know the standards when sending money to Bangladesh.
As a bonus, you can also use this research to flag any suspicious activity you may encounter.
3. Find a Trustworthy Partner
The remittance industry in Bangladesh is highly competitive, with many players offering similar services at competitive rates.
This has led to a situation where there are very few barriers to entry for new players who want to get into this market.
To make sure you can choose the right partner for your money remittances, consider following these tips before you decide:
4. Look for Several Options
Don’t just sign on to the first money remittance you find. There are plenty of viable options out there that may be able to match your specific needs.
Your main choices would be your bank and money transfer service providers. Be sure to weigh the pros and cons thoroughly before you decide.
5. Research Client Reviews and Recommendations
Banks are most trusted because of the secure way they transfer cash internationally. However, transfers may take a long time – time you may not always have. It can also be a bit more expensive.
This is where money remittance providers come in.
Practice due diligence before finalizing your decision. Aside from checking their business registration, it also pays to listen to what actual customers have to say about them.
Ask fellow Bangladeshi expats in your area about the money transfer provider you’re eyeing. Or better yet, get their recommendations.
6. Check Their Customer Service
Once you have a narrowed-down list of candidates, check to see whether they have good customer service. You can also ask your fellow expats about this or check them yourself.
If you decide to do the latter, try to contact the money transfer company’s customer service. This confirms their existence and gives you a glimpse of how responsive and active they are.
If there’s no answer or their active times are too limited, you’re better off with a different provider.
7. Assess the Speed of Transfer
Speed is the key factor that separates most money transfer services.
You can skip this if you’re not in a hurry, but it would be best to include this step in your due diligence checks to determine whether the promised timeframe for the transfer is followed.
Most service providers have the money transfer timeframe indicated on their service pages. They should also have some tracking system you can use that gives you clear visibility of your money’s journey.
If either of these is unavailable, move on to the next candidate.
8. Learn How to Spot Red Flags
While searching for a money remittance partner, you may encounter some shady companies.
Learning how to spot the red flags can help you avoid falling for a scam or any other malicious activity involving international money transfers.
The thing about scammers is that they prefer money transfers. However, there are many ways you can protect yourself from them.
This can be summarized into a two-step process:
- First, ensure you find a partner you can rely on and trust. (If you followed item no. 3, you’re right on track).
- Second, ensure you read up on how these criminals usually work. Check their modus operandi.
Here are a few of the typical scams online that may coerce you into sending money to another country:
- Quick money bait: This involves investing or business “opportunities” and random inheritance emails.
- Long lost love: Online matchmaking isn’t the safest way to meet your one true love. Sometimes, it can leave you having trust and financial issues. Avoid wiring money to someone you’ve never met to be safe.
- Charity: Unfortunately, many scammers also use your compassion and sense of charity to earn money illegally. Be critical when sifting through those asking for money, even if it involves receiving physical letters seemingly written by children.
Send Money With Ease
Money remittance to Bangladesh is a task you should plan for carefully.
Whether you’re working or just visiting UAE to see the top attractions and amusement parks in Abu Dhabi and Dubai, with the help of this guide, you can send money safely to your loved ones and even take advantage of policy updates regarding the service.
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