Like many other Vietnamese migrants, Emma Tran sends money to her elderly parents.
She feels responsible for paying back some of the debt they incurred for raising her.
“They don’t need my money but I want to give them a little bit, so sometimes I send them money for a ceremony or for a gift for them. Although they don’t need it, they are happy to receive it.”
Emma Tran says in Vietnam adult children are obliged to look after their parents and other family members in their old age.
“For Vietnamese people it is like a culture that when children grow up and they have responsibility to take care for their parents.”
Vietnamese migrants from around the world send about 10 billion dollars to families back home every year.
About 10 per cent of this amount comes from Australia.
Emma Tran says many of her friends send money home and these payments can be an important part of the income of siblings and relatives.
“Most of them they need to support their family in Vietnam because – you know – compared, the living standard in Vietnam and Australia, the living standard in Vietnam is worse. Many families in Vietnam are still living in a poor condition.”
There are many ways of transferring money overseas.
Emma Tran prefers to use her own bank.
“I use as main transfer to send money from bank to bank. For me that’s a simple way to transfer. But most Vietnamese people they use Vietnamese agencies.”
Using a bank is one of the easiest ways of sending money overseas but it is also the most costly.
Every Australian bank will charge a different fee for their services.
Usually it’s between $10 and $32 for each money transfer.
When it comes to sending smaller amounts of up to one-thousand dollars to family and friends, cheaper options are ‘non-bank’ money transfer companies.
Their transfer fees vary between $0 and $15 for small amounts.
However, the transfer might take longer because setting up an account and getting approval can take a few days.
Another important factor to consider is the daily exchange rate between the Australian dollar and other currencies.
Warren Day, Regional Commissioner Victoria of the Australian Securities and Investments Commission says, a good exchange rate means more money for those who need financial support.
“There are lots of options but you should shop around for a good exchange rate. This could mean the difference between more money or less money in the bank account of the person you are sending the money to.”
He says there are few complaints about money transfer operators in Australia, but customers should always take care and be comfortable with whom they use.
“You can compare companies that send money overseas on several websites which are supported by the World Bank. They include SendMoneyPacific and SendMoneyAsia. Again, make sure you do your research before using a money transfer service because if you’re not careful you could fall victim to a money transfer scam and it’s almost impossible to get your money back.”
Abdimalik Abdi is the director of Dahabshiil, a money transfer company in Sydney’s Western suburbs with a focus on countries in east Africa.
Abdimalik came from Somalia 20 years ago.
He says that like many of his customers, he is also sending money back home.
“Im sending to my mom back home since I was here. So I have to give them support to do their normal house expenses. The money they get from here is their lifeline.”
Sending money through a ‘non-bank’ transfer service is not difficult and only requires a check of identity.
“In money transfer you need the details of the person who is sending the money and the details of the person who receives the money. That is the main thing. You have to provide your ID or passport or driver license to prove you are the actual person who is transferring the money because in Australia there is a regulation, the money transfer regulation.”
Once the identities of the sender and the recipient have been established, the actual money transfer only takes minutes and all fees are paid by the sender.
“When a person sends money, we give a receipt and a transaction number, so this person in here can send this message to the person over there. So, this person in Africa can go to our branches and offices back home with the transaction number and receive the money straight away, sometimes within minutes."
But what happens if the money sent never arrives?
Warren Day says the first complaint should go to the company that handled the money transfer.
“If they are not able to find your money or you’re not satisfied with the response you’re getting from them, you can complain to the financial ombudsman service.
You can call them on 1800367 287. You can also visit ASIC’s Money Smart website, that’s moneysmart.gov.au for more guidance.”
Different transfer agencies have different limits on the amounts of money they allow customers to send overseas.
However, under current Federal legislation, all Australian financial institutions are required to report cash transactions of $10,000 or more, including details of the relevant account holders, to the regulator AUSTRAC.
The Australian Transaction Reports and Analysis Centre monitors financial transactions to identify instances of money laundering, organised crime and tax evasion.
