Remittance Costs from Belgium Too High: IOM Reports The International Organization for Migration (IOM) has released a report highlighting the excessive costs of sending remittances from Belgium to developing countries. The report found that the average cost of sending a remittance of 200 euros from Belgium to a developing country is 12.8%, significantly higher than the global average of 6.4%. This means that migrants in Belgium lose a large portion of their hard-earned money to remittance charges. The IOM report identified several factors contributing to the high costs, including: * Bank fees: Banks in Belgium charge substantial fees for international money transfers, particularly for small amounts. * Foreign exchange commissions: Banks and remittance providers often markup the exchange rates for converting euros into other currencies. * Hidden charges: Remittance services may include additional fees, such as transaction charges or service fees, which are not always transparent. The high remittance costs in Belgium not only impact migrants but also the families and communities they support in developing countries. These funds are essential for meeting basic needs, such as food, healthcare, and education. The IOM report calls on the Belgian government and financial institutions to take action to reduce remittance costs. Recommendations include: * Regulatory reforms: Implementing measures to limit bank fees and promote competition among remittance providers. * Consumer awareness: Educating migrants on remittance costs and alternative options for sending money. * Partnerships with financial institutions: Collaborating with banks and remittance providers to offer low-cost remittance services. By reducing remittance costs, Belgium can support its migrant population, empower developing countries, and contribute to global economic development. The IOM report provides valuable insights and urges policymakers to prioritize the issue of high remittance costs.High Remittance Costs Hinder Development ImpactHigh Remittance Costs Hinder Development Impact In Belgium, where immigrants comprise a third of the population, remittances surged to over $7 billion in 2023. However, high transaction costs mar this flow of funds. IOM’s National Summit on Remittances in Brussels sheds light on this issue. Despite efforts to reduce costs to less than 3%, Belgium’s average transaction cost remains at 4.3% for remittances to 21 countries. This hinders development efforts. Reducing costs by 1% could increase remittances up to 1,078%, particularly crucial during humanitarian crises. Cash remittances are often more expensive than digital transfers, emphasizing the need for financial inclusion. IOM’s O-REMIT project gathers data on remittance costs, volume, and impact in Belgium. By involving migrants and focusing on specific corridors, IOM aims to enhance informed decision-making on remittance services. The project supports Sustainable Development Goal 10c, which aims to reduce transaction costs of migrant remittances. It also aligns with goals of the Global Compact for Migration, promoting the role of migrants in sustainable development and encouraging affordable and accessible remittance transfers. Despite focusing on Belgium, the O-REMIT studies offer insights into achieving Sustainable Development Goals globally, benefiting both host and remittance-receiving communities.Remittance Costs from Belgium Remain Excessively High A recent report by the International Organization for Migration (IOM) has highlighted the persistent issue of high remittance costs from Belgium. The report found that the average cost of sending money from Belgium to other countries remains around 10%, significantly higher than the global average of 6.3%. The report attributed the high costs to several factors, including: * Limited competition: A small number of large banks dominate the remittance market in Belgium, reducing competition and driving up costs. * Lack of transparency: Insufficient information is often available to consumers on the true costs of remittances, making it difficult for them to make informed decisions. * Complex regulations: Compliance with anti-money laundering and counter-terrorism financing regulations can add to the complexity and cost of remittances. The high remittance costs disproportionately affect low-income migrants and their families back home, who rely on remittances to meet basic needs such as food, shelter, and healthcare. The IOM report called on the Belgian government and financial institutions to take steps to reduce remittance costs, including: * Promoting competition: Encouraging new entrants to the market and supporting smaller remittance providers. * Improving transparency: Requiring remittance providers to clearly disclose all fees and charges to consumers. * Streamlining regulations: Reducing administrative burdens for remittance providers while maintaining necessary safeguards. The report also highlighted the need for financial literacy initiatives to help migrants make informed decisions about remittance services. “High remittance costs are a barrier to the development of migrant communities and their home countries,” said the IOM’s Belgium office director. “We urge the government and remittance providers to work together to address this issue.”