Differences Between Licensed and Unlicensed Financial Services
The Myanmar adult population who goes abroad for work has been increasing yearly due to today’s needs. As the workers wish to transfer their salaries back home to their families, the international money transfer business takes its crucial place. From the late 1980s to early 2000, money transfers were processed through one’s acquaintances. This market was forged to exist out of necessary demands but it was not a licensed business. However, the rise in trades between neighboring countries in 2010 has led many finance companies to provide licensed financial services. Around that time, many countries also began to practice laws that penalize various unlicensed money transfers. Thus, we present the notable differences between licensed and unlicensed financial services.
Unlicensed financial services provide the amount of reliability that is solely based on how well a customer knows the service provider personally. The problem is that he has a risk of facing other unforeseen losses of getting pulled by the government’s financial laws. Once he gets legally obtained by the government, you have to start worrying if and when your family will ever receive a portion of your hard-earned money. How much can a person trust a business without any official information?
Licensed financial services do differ as there will be no such scenario. These finance companies are 100% reliable because the business operates under the guidance of the country’s central bank. Your hard-earned money is safe throughout the process.
There are some unlicensed financial businesses in foreign countries that even come to collect the money at your doorstep. Such businesses also provide same-day transfer but they do not guarantee countrywide withdrawal.
Licensed financial service companies like TrueMoney provide legitimate addresses that enable you to withdraw the funds anywhere in the country without an off-day.
Risks are involved when using an unlicensed money transfer service. One is that you always have to worry at every step until your family confirms that they have received the funds. Secondly, this person can be arrested anytime by the government for providing unlicensed financial services internationally. In addition, there are chances that he might scam you. When using a licensed fund transfer service, filling a form of required information is mandatory. Even though it may seem like a lengthy process, the paperwork acts as the security of the funds for emergency situations. Moreover, the integration of OTP (One-Time Password) enables a depth of security. In other words, the funds will be only accessible to the recipient who the transferrer chose.
4. Rates and Charges
Without paying government taxes and utilizing secure technologies, the unlicensed money transfer might have a better exchange rate by a notch. Extra service charges are also billed for same-day transfer and at-the-door collect service. Licensed money transfer services only operate their service at their licensed offices. They also equally provide fair financial services to every client with a precise presentation of available services. Lastly, billing for extra service charges are prohibited by the companies’ rules.
We hope that you come to understand two different financial services; licensed and unlicensed. For those who work hard in foreign countries for their families, we insist you consider the facts from this article before transferring your hard-earned money back home. Don’t forget to share this article with your friends who work abroad. In conclusion, we wish you to achieve your dreams.