24 Sep 2024
Every country has its own rules, which are changing rapidly to meet international standards—particularly in places like Ireland, where there is a high concentration of expats. The following changes affect the reach and, consequently, cost, efficiency, speed of money transfer methods provided internationally, and so on remittances in place for a receiver. These regulatory changes have become vital for the Filipino community in Ireland, which sends money to its families quite regularly. This article looks at recent regulatory changes in Ireland and examines what effect these changes could have on the process of making a money transfer from Ireland to Philippines.
Over the years, the Filipino community in Ireland has grown and significantly contributed to the Irish and Philippine economies. According to Ireland's Central Statistics Office, over 19,846 Filipinos were recorded in the latest census as residing in Ireland. Many of them send remittances back to the Philippines quite often to support their families and help out the Philippine economy in general. These remittances play a crucial role not only in sustaining the immediate families but also in the wider economic perspective of the Philippines. Furthermore, as this community continues to thrive, it strengthens cultural ties and fosters a sense of belonging for Filipinos living abroad.
Ireland has continued to bring into force regulatory changes within its financial sector, which are warranted in promoting transparency and consumer protection (and also aligning with European Union EU directives). Here are a few of the most significant changes in regulations that have already impacted or expect to shape how one may send money home:
The Revised Payment Services Directive, widely known as PSD2, was introduced in January 2018 across the EU, including Ireland. PSD2 is a major overhaul of the initial Payment Services Directive introducing several alterations to stimulate competition, strengthen security, and enhance consumer rights within financial services.
PSD2 has brought an exciting turn for those who send money to Philippines from Ireland. It calls for more powerful authentication methods during online transactions, thereby fortifying the security of money transfers via the internet. It implies that even the online money transfer process has become more shielded; it may also include additional steps during a transaction that might affect the speed and convenience of remittances.
Ireland has strengthened its AML regulations in line with EU directives over the years. These regulations dictate a higher degree of customer due diligence from financial institutions, particularly for cross-border transactions. Though these are vital measures that could help prevent criminal acts, they further slow down the process of making an online money transfer to Philippines, especially in the case of a first-time or large-value transaction.
For Filipino expats, an online transaction can entail additional documentation and support, such as proof of income or identification verification, depending on the amount one is sending. These regulations are needed to fight financial crimes but could slow down remittance, especially during peak times like holidays.
Ireland remains part of the European Union; the exit of the United Kingdom still has some indirect consequences on some financial regulations in Ireland. Explicitly, one would notice that this impact may significantly impact the currency exchange rates, which will fluctuate more because of uncertainty in the financial markets. So, the amount of money your family receives in the Philippines will be affected by the Euro to Peso exchange rate.
These regulatory changes have both positive and negative impacts on sending money. Let's explore further how they can affect your remittance experience.
One of the most significant and finest advantages of these changes is that online money transfers will be much more secure. Under PSD2 and with more intense AML regulations, your money will be safer when transferred. For example, two-factor authentication- such as receiving a code on your phone to confirm the transaction—makes it much harder for unauthorized people to get money.
While this added security is reassuring, it does mean that an online money transfer from Ireland to Philippines might take a bit longer than it usually does. Additional verification steps regarding your identity and whether the transaction is valid might make the process slower, but keeping your money safe is vital.
On the other hand, these regulations can cause delays, especially if you send a large amount of money or if this is your first transfer. Financial institutions may ask you to upload extra documents, which could be time-consuming to compile and may take a little more time to process. This is mostly true during busy periods, such as holidays or at the beginning of the school year in the Philippines when it seems like everybody is sending money at the same time.
These delays might seem frustrating; these are an integral part of the process which keeps the money transfer mechanism safe and in compliance with the International standards. You can save time in this course by getting your documents ready well in advance to avoid delays unnecessarily.
Other possible effects of these changing regulations could be on the cost of sending money. Most often, to comply with an increased regulation means increased internal costs for any financial institution, which in turn can be transferred to the customer through higher fees. This, therefore, could imply that money transfers may be more expensive, depending on the service used.
Not all money transfer services will be increasing their prices, though some online platforms offering remittances will absorb the additional costs to compete. Above all, it is always important to compare several services against one another to make the most adequate choices for yourself, bearing in mind such parameters as fees and exchange rates.
Regulatory changes in Ireland are transforming how to send money online to Philippines from Ireland. These updates, including enhanced security measures under PSD2 and stricter Anti-Money Laundering regulations, aim to make money transfers safer, but they may also slow down the process and raise costs. Nevertheless, by staying informed, selecting the right money transfer service, and having the necessary documents ready, you can still send money efficiently to your loved ones in the Philippines. As regulations continue to evolve, new and improved solutions are likely to emerge, simplifying and securing the money transfer process in the future.
The cost of sending money could rise as financial institutions may transfer the expenses of adhering to the new regulations onto their customers. However, this can differ based on the service provider. It's advisable to compare various money transfer services to identify the most affordable option.
If your money transfer is delayed or rejected because of regulatory challenges, reach out to your money transfer service provider right away to find out why. The delay could be due to needing extra documentation or problems with authentication. Quickly providing the required information can help sort out the issue.
To stay informed about future regulatory changes that may affect your remittances, make it a habit to regularly check news sources that cover financial regulations in Ireland. Additionally, consider subscribing to newsletters or alerts from financial news websites to receive updates on any changes that could impact your money transfers.
Under stricter AML regulations, you may be required to provide additional documentation such as proof of identification, proof of income, or other relevant documents, especially if you are sending large amounts of money. These measures are in place to prevent illegal activities like money laundering.
