Exchange companies operating in the UAE have obtained the necessary approvals to implement an optional amendment to transfer fees, allowing them to increase them by no less than 15 percent, equivalent to 2.5 UAE dirhams, according to what was announced by the Financial Exchange and Transfer Institutions Group (FERG).
This amendment represents the first amendment to fees in five years, acknowledging developments in local and global regulatory requirements and increases in costs since the last amendment to fees, according to the FERG statement, which was published by the Emirates News Agency, WAM.
The amendment to fees applies exclusively to branches, while fees for transfers through applications affiliated with exchange and financial transfer companies will remain the same or may be reduced in light of the reliance on digital services and the completion of many tasks without returning to the branches.
The statement stated that this approval comes following a careful evaluation of the expenses associated with meeting the highest standards of service and compliance with regulatory requirements.
He added that the decision aims to ensure the continued competitiveness of exchange companies in light of increasing costs, noting that despite this slight increase in fees, the average cost of money transfers is expected to remain at about 3.5 percent, which is a rate much lower than the average cost at the global level.
According to the latest World Bank reports, the average global cost of sending the equivalent of $200 is 6.2 percent, and revised remittance fees are still within the United Nations Sustainable Development Goals, which aim to eliminate remittance corridors with costs higher than 5 percent by 2030.
Muhammad Ali Al Ansari, Chairman of the Board of Directors of the Banking and Money Transfer Institutions Group, said: “We commend the decision to allow exchange companies to amend their fees on money transfers, as this step is of great importance in enabling companies to adapt to the changing factors in the sector, and the decision also allows exchange companies to move forward.” We continue to provide high quality services, meet changing regulatory requirements and adapt to operating costs that have been maintained without any increase in fees over the past five years.”
The group-based adjustment of fees aims to ensure alignment between fee adjustments and customers’ ability to bear transaction costs, ensuring a smooth, secure and affordable transfer experience.
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