5 questions before starting a money transfer business to high-risk countries!

Thinking of working with some high-risk countries for money transfers. Before you do, research and get answers to these following five questions.

  1. Understand the legality of the transaction and the jurisdiction. Are you working with a sanctioned country or a high-risk country?
  2. Try to find the size of the official and unofficial market and what is being charged. Pay special attention to the official rate and curb rate or street rate does currency conversion.
  3. Determine if banking relationships exist with new or incumbent money transfer operators if no one is willing to bank how will you function? Is there anything alternative?
  4. Is there a cash market still acceptable? Flying cash over, it still happens and if you are licensed for it, it is very legal. Also, find out if you can do netting off?
  5. Is it worth it? Yes, the market will always be there and believe me it is being served, whether, by legal or illegal means, there are transactions happening. The system will be very fragile one day you will be in business and the next day you will be out of business because something went wrong or suddenly something is not available that was previously available to you.

This page was last updated on September 1, 2022.

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