How Can I Legally Send Money To Nepal From Australia?

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Remittance isn’t just about speed; it needs to be legal and secure as well. Money transfers without the right channels can lead to fraud, spam, and legal issues.

While numerous service providers offer remittance services from Australia to Nepal, not all are fully compliant with legal regulations. So, how can you ensure that the service you’re relying on follows the necessary guidelines?

For many Nepalese migrants, finding a legal yet efficient method to send money home can be confusing. In this blog, we’ll guide you through the best and most compliant ways to send money to Nepal from Australia. But first, what are these legalities that are so important to be followed?

Key Legal Requirements To Follow For Money Transfers To Nepal

AUSTRAC Compliance

Because of previous law violations by major banks, the Australian Transaction Reports and Analysis Centre (AUSTRAC) monitors all financial transactions. All the remittance service providers need to be registered with AUSTRAC. AUSTRAC obligates the service providers to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. These obligations imply to:

Money transfers from Australia to overseas.
Money transfers from overseas to Australia.

AUSTRAC overlooks any money laundering, tax evasion, organised crime, or Terrorism financing. Any breach or suspicious activity detected during either of the above financial transactions could lead to major legal penalties.

Know Your Customer (KYC) Regulations

AUSTRAC-licensed remittance providers should follow the Know Your Customer (KYC) protocols. Thus, they need to verify the identity of the sender and receiver for every overseas transaction. For that, they need to ask for valid identification proof such as a driving licence, passport, and residence proof to confirm their personal details. In case of any misinformation or incorrect details, service providers ought to cancel the transaction.

Tax and Reporting Requirements

Although small remittances aren’t tax-obligated, the larger remittances need to be reported to the respective government authorities. AUSTRAC states that any money transfer that is more than AUD 10,000 must be informed. Similar to this, for taxation purposes, the government of Nepal requests information regarding money transfers to Nepal.

Currency Exchange Regulations

Depending on the various features they provide under their remittance services, the service providers charge varying exchange rates. However, they should stick to guidelines for currency conversion from Australian currency to Nepalese. Not to forget, the exchange rates need to be genuine and have no sign of fraud or non-compliance.

Why Do Money Transfers From Nepal To Australia Need To Be Legal?

Unlicensed remittance service providers and fraudulent schemes could not only jeopardise your funds but could put you in legal matters. Sending money to Nepal from Australia through illegal means can lead to several problems:

Legal Penalties: If your remittance violates Australian or Nepalese regulations, you may be required to pay a substantial fine or face legal action.
Loss of Money: Unreliable remittance service providers using illegal ways to transfer your funds without necessary security can cause fund loss.
Fraud Risk: Unregulated money transfer methods offered by unlicensed service providers can lead to fraudulent activities.
Compliance: Non-compliance with government regulations could lead to serious consequences for both the senders and receivers.

Legal Methods To Send Money To Nepal From Australia

Relying on a licenced service provider and following legal methods to transfer funds from Australia to Nepal. Here are some of the legal ways that you can choose, each with its own set of benefits and drawbacks:

Online Money Transfer Services

Online money transfer service providers allow individuals to transfer their money to Nepal from Australia through a secure online platform. The sender creates an account on the online platform and provides mandatory details, including their and recipient information, transfer amount, method, etc. Once the sender completes the process from their end, funds are transferred to the recipient’s account or made available for cash pickup. RemitBy, Western Union, and MoneyGram are some of the common legal service providers that offer online money transfer services.

Bank Transfer

Nepalese migrants transfer their funds by carrying transactions from an Australian bank account to a Nepalese bank account. Banks in Australia, such as ANZ Bank, Commonwealth Bank, etc; legally transfer the funds to the recipient’s account in usually 2-3 business days. The sender initiates the transfer by visiting an office branch, but some banks also provide online banking platforms.

SWIFT Transfer

Businesses that conduct large transactions often use the legitimate SWIFT (Society for Worldwide Interbank Financial Telecommunication) network to transfer money from Australia to Nepal. A SWIFT message is sent from an Australian bank to the recipient’s Nepali bank account to carry out a successful transaction. ANZ Bank, Commonwealth Bank, and NAB Bank are some of the common banks that offer SWIFT Transfer services. The entire transfer process typically takes 2-3 business days to complete.

Cash Pickup

The Cash Pickup option allows the recipient to pick up the funds in person from a specified location in Nepal. This method is quite useful in areas where banking services are limited. The sender initiates the transfer through a remittance service or an online money transfer platform. The recipient then visits a cash pickup point, which may include banks, post offices, retail outlets, or other authorized locations specified by the provider.

Remittance Services

Remittance service providers eliminate the need for lengthy traditional bank transfers and offer quick money transfers to Nepal. In the past, remittance service providers required the sender to physically visit their Australian office to initiate a money transfer, and the recipient had to collect the money from their office branch in Nepal. But these days, they offer a range of transfer choices, such as cash pickup, mobile money, and bank deposits. RemitBy, one of the leading remittance service providers, offers online services that eliminate the need for in-person visits and enable instant online transactions.

Mobile Wallet Transfer

One can also transfer money through a mobile phone using a mobile wallet. Many mobile wallets now support international transfers, allowing the sender to easily transfer funds from their mobile wallet to the recipient’s mobile wallet in Nepal. However, it’s important to note the availability of mobile wallet services that operate between Australia and Nepal.

Credit/Debit Card Transfer

You can also send money to Nepal from Australia using a credit or debit card. This can be done by visiting your bank branch in person or by utilising your bank’s online banking platform. This method facilitates the easy and flexible transfer process for individuals who prefer to carry out their transactions through credit or debit card payments.

Conclusion

When sending money to Nepal from Australia, you should always choose a service that is legally compliant and offers security, and convenience. Remitby is a licenced and reliable remittance service provider that offers fast transactions and prioritises safety at competitive exchange rates. It ensures that your money reaches your loved ones quickly, safely, and legally as well. So, if you are looking for a reliable way to send money, RemitBy is a smart and compliant option.