Financial Regulators

SEC

The U.S. Securities and Exchange Commission (SEC) is an organization set up by the United States government in response to the Wall Street Crash in 1929. The SEC mission statement explains how the organization was created to “protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.” The Securities Exchange Act of 1934 was created as a result of the Great Crash of 1929, designed to govern securities transactions on the secondary market (or aftermarket): this led to the creation of the SEC.

Founded on June 6th of 1934 in Washington, DC, United States, the headquarters remain located in The Capitol. Government official Gary Gensler was nominated to be the Executive Chairman of the SEC in February 2021, by President Joe Biden.

SEC has the power to bring civil action against people breaking the laws it is responsible for overseeing, as well as working on criminal cases in collaboration with the US Justice Department. The financial markets and entities the SEC is responsible for include investment funds, investment advisors, dealers, brokerage firms, and securities exchanges.

In 2021 the SEC was responsible for obtaining judgments for almost $2.4 billion USD in disgorgement (repayment of illegal or unethical profits) and $1.4 billion in penalties.

What is the SEC responsible for?

The responsibilities of the Security and Exchange Commission are divided into the following five divisions:

FRB

The Federal Reserve Board (FRB), also known as the Board of Governors of the Federal Reserve System, is the governing body in charge of the United States Federal Reserve System. The board is responsible for maintaining the order of America’s central bank; most countries have similar organizations in place to monitor a nation’s financial system.

President Woodrow Wilson signed the Federal Reserve Act of 1913, thus creating the system which remains in operation today. The FRB follows The Banking Act of 1935 which sets reserve requirements and interest rates for deposits at each member bank. The Board is tasked with maintaining “fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country.”

The FRB is made up of seven members, all of whom are appointed by the U.S. Congress. Each member is asked to serve a term of 14 years, but in practice, some may serve for shorter or longer periods of time. The Board of Governors is made up of a mix of Republicans and Democrats in a bid to ensure a balanced political perspective.

What is the FRB Responsible for?

OTS

The Office of Thrift Supervision (OTS) was created in 1989 in response to the savings and loans crisis of the 1980s. Speaking on the subject of the newly established OTS, reigning President George H. W. Bush said: “Never again will America allow any insured institution to operate normally if owners lack sufficient tangible capital to protect depositors and taxpayers alike.”

The Office of Thrift Supervision was an official federal agency under the United States Department of the Treasury. Initially, the OTS had an active and aggressive approach, but this dwindled as a result of the decrease in revenue and staff numbers. The OTS received funding from banks and other US federal bank regulators.

On the 21st of July 2011, OTS was dissolved because of being implicated in backdating scandals regarding the balance sheet of IndyMac. However, the work the OTS did was important so it was merged with other existing US regulators, such as The Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, and the Federal Reserve Board.

What Was the Office of Thrift Supervision Responsible for?

In this section, we will outline the main responsibilities of OTS. We explain how OTS helps contribute to a safe banking system and how it might affect international money transfer customers. Keep in mind that the OTS is no longer operating, which means these responsibilities were inherited by the regulators it was merged into. The main duties of the OTS included:

OCC

The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that examines the conditions of banks and financial institutions that operate across the country. The federal agency was established by The National Currency Act of 1863: their mission is to supervise, regulate, and charter agencies of foreign banks in the US, federal branches, federally chartered savings associations, and national banks. Due to the various supervisory duties of the OCC, international money transfer customers may encounter the organization when sending money abroad.

Unlike other financial regulators in the United States - such as The Federal Deposit Insurance Corporation (FDIC) - the OCC does not receive funding from Congress. Instead, funds are secured from federal savings associations and national banks. These financial institutions fund the OCC, who in turn, process corporate applications and examinations. Other funding is secured from investment income and US Treasury securities make up the majority of this revenue stream.

The Comptroller of Currency is a Senate-appointed individual who chairs the office for a 5-year term. At the time of writing the Acting Comptroller of Currency is Michael J. Hsu, who was appointed in May 2021, by Secretary of the Treasury Janet Yellen.

Headquartered in Washington, DC, the OCC has 4 districts located in New York, Denver, Dallas, and Chicago, with a further 92 locations across the United States.

What is the Office of the Comptroller of the Currency Responsible for?

This section will outline the main responsibilities of the OCC, as we explain how the independent bureau helps charter the US financial system and international transfers sent to and from the country.

Duties overseen by the OCC include:

• Ensuring customers are protected from fraudulent banking practices

• Ensuring consumers have equal and fair access to banking services

• Issuing penalties to any banks that do not adhere to the regulations and laws

• Monitoring banks and identifying illicit or unsafe practices that threaten to destabilize the financial sector or put consumer money at risk

• Evaluating new bank branch and bank charter applications to ensure they meet the requirements of United States law.

• Examining corporate structure to ensure banks are in the best position to follow all governing rules

• Visiting bank headquarters and branches, to perform audits that determine if customer funds are at risk

• Providing various frameworks for banks to follow

• Working with member banks to help navigate regulations and follow applicable guidelines

The OCC is a core financial regulator with a vast workload that includes supervising 1,109 banks with a total value of $15.1 trillion. This money makes up approximately 65% of the overall US commercial banking sector.

Furthermore, there are 2,352 OCC examiners and their budget for 2022 is $1.154B. They are one of the key regulators for safeguarding the funds of money transfer clients that use the US banking system.

NCUA

The National Credit Union Administration is a government-backed organization that insures credit unions and financial institutions that accept deposits. This includes money transfer companies like TorFX, Wise, and WorldRemit.

They were formed on March 10th, 1970, and the headquarters are in Alexandria, Virginia. Based on 2020 data, they have 1,149 employees and an annual budget of $316.8 million. The Chairman is Todd M. Harper, and the agency preceding this one is the Bureau of Federal Credit Unions.

The NCUA is governed by a three-member board, confirmed by the Senate and appointed by the President of the United States. Board members typically stay in positions for six years until the next ones are sworn in.

What Are the Responsibilities of the NCUA?

This section covers the primary responsibilities of the NCUA so you can better understand their role in the US economy. In addition, consumers of money transfer companies can learn why this organization might be relevant to them. Responsibilities of the NCUA:

The NCUA also regularly provides news updates relating to credit unions. You can learn more about what new regulations or rules are in place through press releases, speeches, email newsletters, and conferences.

NCUA Regulations

This section covers the regulations, crimes, and industries that the NCUA covers. Therefore, at a glance, you can get an idea of the scope and limitations of the NCUA.

• Regulations: The Federal Credit Union Act is the source of the authority under which the NCUA operates. All federally chartered credit unions have to adhere to the rules and terms of the act. Additionally, the NCUA has rules and regulations that must be followed, and the general public can submit proposals for the organizations to consider.

• Crimes: The NCUA does not deal with crimes like money laundering. Instead, they only look for instances where federally insured credit unions are not following the Federal Credit Union Act or its rules. When these rules are not followed, then fines are handed out.

• Industries: The NCUA is limited to credit unions that are federally insured. They do not oversee other financial institutions, so their scope is limited. However, this focus allows them to do a great job of ensuring credit unions provide a fair service to their members and are held accountable.

• Accountability: The NCUA is accountable to the Government of the United States and the general public that uses credit unions.

FINRA

FINRA is a private self-regulatory organization which means that it is a non-government entity, unlike other regulators such as the FDIC. FINRA receives its power from the Securities and Exchange Commission, and one of its core rules is that brokers must be members of FINRA. This means brokers must pass the required exams and adhere to FINRA rules. Although it is not illegal to break FINRA rules, losing membership means you will be breaking the law if you continue working as a broker.

FINRA was founded in 2007 to create rules for broker-dealer firms and registered brokers. It is responsible for overseeing 625,000 registered securities representatives, 154,000 branch offices, and 3,500 brokerage firms.

FINRA headquarters are in Washington, D.C, United States and Robert W. Cook is the President & CEO. The organization employs over 3,000 employees that work across 20 offices in the United States. FINRA is not funded by taxpayer money, instead, member fees and fines are the revenue source of this organization.

What is FINRA Responsible for?

Here we will provide an overview of FINRA’s core responsibilities and how these duties influence the world of finance.

FinCEN

The Financial Crimes Enforcement Network is a United States Department of the Treasury bureau that fights domestic and international terrorist financing, money laundering, and other financial crimes. They do this by collecting and analyzing information about financial transactions.

The headquarters of FinCEN is in Vienna, Virginia, and the agency executive is Ken Blanco. They have an annual budget of $114.2 million based on 2018 data. Also, the agency was formed on April 25th, 1990.

FinCEN comprises three parts: the financial services community, the regulatory community, and law-enforcement agencies. Furthermore, FinCEN is the US representative in the Egmont Group, which consists of 100 intelligence agencies. In the next section, we will share their top responsibilities to get a better idea of their vital work in promoting the health of the US economy.

What Is the FinCEN Responsible for?

This section highlights the primary responsibilities of FinCEN. This allows consumers of money transfer companies to understand better how their work will impact the experience of sending money to the United States. You will see that FinCEN is a valuable cog in the US economy that contributes to the fair nature of the financial markets. Top responsibilities of FinCEN:

Financial crimes typically leave a trail. Following this trail is the job of FinCEN to ensure they can find the suspects of wrongdoing in the US financial markets. Unfortunately, this process can take a long time, depending on the sophistication of the strategy used by the criminals. Therefore, sharing information with other regulators, law enforcement agencies, and partners helps reduce the time required to find bad actors.

FinCEN Regulations

This section shares the regulations, crimes, and industries relevant to FinCEN. This enables consumers of money transfer companies to figure out how FinCEN impacts their experience. You can also learn about their scope and limitations.

• Regulations: FinCEN operates under various regulations, including the Bank Secrecy Act of 1970. The act was created to prevent criminals from using financial institutions as tools to launder money. The rules and regulations of FinCEN update over time to meet the challenges of constantly changing technology. For example, as cybersecurity has become more of a threat, the resources spent to prevent this fraud have increased.

• Crimes: FinCEN deals with a wide range of financial crimes, which include money laundering, cyber security, narcotics trafficking, identity theft, tax evasion, and much more. They collaborate with other US regulators, so they assist in almost every type of crime that is committed.

• Industries: FinCEN mainly deals with financial institutions, but their work might overlap with other sectors as they collaborate with different regulators. Bank and money transfer companies like Wise, WorldRemit, and Xe are among the responsibilities of FinCEN.

• Accountability: FinCEN is accountable to Congress and the United States Government. They have to provide reports to Congress, and Government organizations decide on the director of the organizations.

FED

The Federal Reserve System is the United States central bank responsible for ensuring that the economy remains stable during turbulent times. Experts believe that the organization is the most influential financial institution in the world, which means their actions will have a profound effect on consumers of money transfer companies.

The FED has a board that is made up of 7 members. Also, there are 12 federal reserve banks, each with its own district. Their primary duties involve providing banking services, ensuring the US economy is stable, and regulating monetary policy. Keep reading to learn more about the details of their responsibilities.

The organization was founded in 1913, which makes them one of the oldest financial institutions in the US. Their current bank rate is 2.5%, and the interest rate target is 2.25-2.5%. Their jurisdiction is the United States, and the child agency is the Federal Open Market Committee.

What Is the FED Responsible for?

This section is an overview of the responsibilities of the FED. This explains why they are a big deal for regulating the US economy. Understanding the important work of the FED will give you peace of mind when sending money to the United States. Here are the top responsibilities of the FED:

FED Regulations

Now let us take a closer look at the relevant regulations, crimes, and industries relating to the FED. This provides the scope and limitations of the FED at a glance. Therefore, money transfer customers can learn how the FED contributes to the quality of their experience.

• Regulations: The Federal Reserve is responsible for regulating private banks. The philosophy for how the FED does this ensures a balance between government regulations and privatization. The Federal Banking Agency Audit Act is the relevant regulation that the FED uses to oversee the financial system.

• Crimes: The FED can reduce the chances of crimes by maintaining macro-level decisions. For instance, they can block routes or loopholes for bad actors that want to launder money. However, they are not involved in the day-to-day investigating and stopping of minor financial crimes.

• Industries: The FED is responsible for the financial-related industries – especially banks and companies that allow consumers to deposit money. The FED will regulate any entity that meets these criteria and is within the United States.

• Accountability: The FED is accountable to the public and Congress. Twice every year, the FED must submit a Monetary Policy Report to Congress, and the chair and Board of Governors must testify.

FDIC

The FDIC was created in 1933 in response to a wave of bank failures. It is an independent federal agency insuring deposits in the US and as of 2020, insuring deposits of up to $250,000 with affiliated banks. The organization was established by the US Congress to help stabilize the US economy and boost national and international confidence in the banking system.

The FDIC employs more than 5,000 professionals across multiple US-based offices, with an annual budget of $2.2 billion. Up until early 2022 Trump-appointed Jelena McWilliams was the head of the organisation, but has since resigned due to issues with other directors on the board. The FDIC head offices are in Washington, D.C, with other regional offices in Atlanta, Boston, Chicago, Dallas, Kansas City, New York and San Francisco.

The FDIC Board of Directors is made up of 5 members, 3 of which are appointed by the President, and 2 appointed by the United States Senate. As a rule, only 3 members of the board are allowed to have the same political affiliation. The structure of the organization is created to provide an unbiased approach to overseeing the US banking industry.

Member banks are the primary source of funding for the FDIC, as opposed to public funding.Furthermore, to offer stability, the FDIC has a line of credit from the United States Treasury Department that is $100 billion.

What is the Federal Deposit Insurance Corporation responsible for?

In this section we will elaborate on how the FDIC helps to protect customers through their affiliation with member banks. Customers making international money transfers to or from the US will benefit from the following FDIC jurisdiction.

FCA

The Financial Conduct Authority (FCA) is a UK financial regulatory body responsible for overseeing and regulating the UK financial markets. Founded on 1st April 2013, the FCA acts independently of the UK government and was established as a result of major changes to the Financial Services and Markets Act 2000 which was amended in 2012. The changes increased the severity of regulations and the FCA were employed to enforce stricter guidelines and penalties.

The jurisdiction of the FCA covers the United Kingdom only, with headquarters based in London. Working alongside the Financial Policy Committee and Prudential Regulation Authority, the FCA is responsible for overseeing 58,000+ businesses with yearly tax revenue of £65.6 billion and staff of more than 2.2 million people.

What is the FCA Responsible for?

This section explains the responsibilities of the FCA, to help our readers gain a better understanding of how the organisation safeguards the UK financial sector. The core duties of this financial regulator can be broken down into the following categories:

BOE

The Bank of England is the UK’s central bank, and around the world, other central banks have based their financial infrastructure model on this one. It was established in 1694 so that the bank could act as the English Government’s banker. It is the 8th oldest bank in the world and was nationalised in 1946 by the Attlee ministry.

The headquarters are in London, England, and the current Governor is Andrew Bailey. It has reserves of $101.59 billion, and it regulates the Pound Sterling currency.

The Bank of England is not a regular bank for consumers to use for depositing money, international transfers and receiving money from abroad. Instead, they are a central bank and regulator responsible for ensuring the UK’s economy runs smoothly.

What Is the Bank of England Responsible for?

This section takes a closer look at the responsibilities of the Bank of England. They are the most crucial entity in the UK’s economy since they make the critical decision regarding monetary policy. Understanding their responsibilities gives you a better idea of why you can trust the UK economy as a customer of money transfer companies. Bank of England responsibilities:

Bank of England Regulations

This section provides the key Bank of England information at a glance. You will learn about the relevant regulations, crimes they stop and industries they are involved in.

• Regulations: the Financial Services Act of 2012 reformed the UK’s government financial regulation. Many of the new policies were a response to the 2008 global financial crisis, and it created the Financial Policy Committee.The Bank of England enforces its regulatory power through the Prudential Regulation Authority. They regulate all types of financial services, which include banks and money transfer companies.

• Crimes: the Bank of England does not deal with crimes committed by the general public – other entities are responsible for dealing with such matters. Instead, they focus on instances where financial institutions do not follow the rules of the UK’s financial markets.

• Industries: The BOE mainly deals with the financial sector. They act to enforce the regulations on financial services companies and banks. However, the monetary policies they make impact all industries in the UK.

• Accountability: the Bank of England is accountable to the UK Government since they act as their banker. This means they have strong powers to make changes to the UK economy.

PRA

The PRA is a regulatory body in the United Kingdom for the prudential regulation of financial entities, which requires them to have enough capital to manage risk. The type of financial institutions that it is charged to oversee includes major investment firms, insurers, credit unions, building societies and banks.

The Bank of England oversees the PRA, and they control them through the Prudential Regulation Committee. The PRA was the result of the Financial Services Act 2012, and from the start, it has worked with the Financial Conduct Authority – one of the leading UK regulators in the financial industry.

The headquarters of the PRA is in London, United Kingdom, and they were formed on the 1st of April, 2013. The PRA has quasi-government regulatory powers instead of being a direct arm of the UK’s government.

What Is the PRA Responsible for?

Now let us turn our attention toward the responsibilities of the Prudential Regulation Authority. This enables customers of money transfer services to figure out how this regulator can help improve the UK economy.

The Prudential Regulation Authority is not looking for an approach that involves zero-risk policies. That would be impossible in most cases and a counter-productive way of regulating the UK economy. Instead, they try to reduce the chances of financial failure so that significant disruption to the UK’s economy is not caused.

An example of the PRA in action is when they sent out a formal request to the biggest lenders in the UK to suspend share repurchases and dividends at the end of the year. This was in response to the COVID-19 pandemic crisis that started in March 2020.

PSR

The PSR is a UK regulator established in 2015 to regulate payment systems. The regulator ensures that businesses and consumers enjoy the benefits of solid payment systems, which function with fair competition and innovation.

The PSR was set up as a consequence of the reviews from the Cruickshank Report in 2000 and the HM Treasury consultation Opening UP UK Payments. Consequently, the PSR was created under the Financial Services (Banking Reform) Act 2013. In 2014 they started work by taking a closer look at various payment systems used in the UK. However, the PSR became fully operational on April 1st of, 2015.

The headquarters of the PSR is in Stratford, London, and the HM Treasury has designated the eight payment systems they monitor. They have powers from the Government of the UK, which means they are one of the more essential regulators in the country.

What Is the PSR Responsible for?

Now we will delve deeper into the responsibilities of the PSR. This will help you better understand how they help money transfer customers interact with the UK’s economy and why they are a noteworthy regulator. The responsibilities of the PSR include:

The Payment Systems Regulator is funded by the industry and is an independent organisation with its managing director and board. Also, they are accountable to the Parliament and are an independent subsidiary of the Financial Conduct Authority.

Payment Systems Regulator Regulations

Now let us dive deeper into the regulations, crimes and industries relevant to the PSR. This section provides vital information at a glance that allows you to figure out how the regulator helps customers of money transfer companies.

• Regulations: The PSR has strong regulatory and competition powers, which means they can give direction and set standards, impose requirements about system rules, ask operators for direct access to payment systems, amend payment system fees or charges, investigate questionable behaviour and act when there is evidence of anti-competitive signals. Overall, The PSR is the most significant authority in the payment systems industry, with powers handed down from the government. Therefore, all businesses that operate in the payment system space are accountable to the PSR.

• Crimes: The crimes that the PSR deals with relating to the payment systems and how they are implemented by banks or money transfer companies like Currencies Direct. They monitor the industry and look for breaches, which can result in fines.

• Accountability: They are accountable to the British government, with strong powers to ensure they can enforce the laws.

FSCS

The Financial Services Compensation Scheme is the UK’s statutory deposit insurance and investor compensation scheme. They allow you to retrieve lost money when authorised financial services companies go bankrupt.

The FSCS operates independently, and there is no fee for using its services. The organisation was set up under the Financial Services and Markets Act 2000. Also, the Financial Conduct Authority has created the scheme rules for the FSCS.

The organisation was formed in 2001, and its headquarters are in London. They have an annual budget of 79.6 million GBP based on 2019-2020 figures. The current agency executives are Marshal Bailey (Chairman) and Caroline Rainbird (Chief Executive Officer).

The FSCS receives its funding through levies from the Financial Conduct Authority and Prudential Regulation Authority. The costs that they incur include compensation payments and management expenses.

What Is the FSCS Responsible For?

This section covers the responsibilities of the FSCS so you can better understand how they are relevant to customers of money transfer companies. You will learn why they are an essential organisation in the UK financial markets.

The limits of the FSCS responsibilities are laid out on the compensation limits page of their website. Also, people can discover what makes them eligible to receive compensation. The maximum amount that each person can receive is 85,000 GBP per bank, building society or credit union. For joint accounts, the maximum compensation amount is 170,000 GBP.

The FSCS only pays out money when the firm in question cannot pay themselves, which means they are in default. The FSCS will investigate the financial status of the firm. The organisation was created primarily to help private individuals, but in some cases also covers small businesses.

FSCS Regulations

This section is an overview of the regulations, crimes and industries that relate to the FSCS. This enables you to quickly understand what the FSCS is about and understand its limitations.

• Regulations: The FSCS was set up under the Financial Services and Markets Act 2000. This gives them the power to offer the compensation scheme to the general public. Also, their scheme's rules were created by the Financial Conduct Authority, one of the top UK regulators.

• Crimes: The FSCS does not deal with any crimes in the financial industry. They only deal with claims regarding compensation payouts for money that cannot be paid back by financial institutions.

• Industries: The FSCS is limited to financial institutions active in the UK economy. The type of deposits covered by the scheme includes mortgage arrangements, mortgages, investments, insurance brokering and regular currency accounts.

• Accountability: The FCA appointed the board members of the FSCS, so they are accountable to the regulator.

FPC

FPC is an official committee of the Bank of England based on the Monetary Policy Committee. In 2010 it was announced that the committee would be responsible for monitoring the health of the UK economy. In addition, the organisation is responsible for looking at macroeconomic factors that may lead to negative growth consequences.

The FPC usually has around 13 members, including:

• Six from the Bank of England.

• Four are Deputy Governors and the Executive Director for Financial Stability Strategy and Risk.

• Five external members outside the Bank of England are also selected for their expertise.

• One non-voting member from the HM Treasury and the Chief Executive of the Financial Conduct Authority is also part of the committee.

The committee was established as part of the effort to improve oversight of the UK economy after the economic crisis of 2008. The new system of regulation was designed to improve financial stability.

What Is the FPC Responsible for?

In this section, we will cover the various aspects of what the FPC is responsible for. This will enable you to figure out their role in ensuring the UK economy runs smoothly, and money transfer customers can continue sending money to the UK.

The committee is headed by the Governor of the Bank of England (currently Andrew Bailey). If there are economic concerns, they are passed down to the Prudential Regulation Authority.

FPC Regulations

This section highlights the regulations that govern how this committee operates. This will give you an overview of their scope and where the responsibilities end. At a glance, you can get a feel of what the FPC is about.

• Regulations: The Financial Policy Committee's powers can be broken down into two sets: powers of direction and recommendation. Using these powers, the FPC can suggest regulators about what policy to pursue.

• Therefore, The FPC does not have direct powers to make changes. Instead, they are simply a committee that offers advice that enables the regulators with powers to pull the trigger on meaningful policy changes.

• Crimes: The FPC is not involved with the monitoring and dealing of criminal activity in the financial markets. Instead, they focus on bigger picture macro trends that indicate where the UK’s economy is heading.

• Industry: The FPC monitors all aspects of the UK’s economy, so it covers all industries. The data it uses to make decisions is pooled from any sector contributing to the nation’s financial markets.

• Accountability: The FPC is accountable to the Parliament. Also, the Governor of the Bank of England, a member of the FPC, communicates with the Chancellor annually.

FOS

The FOS is a UK ombudsman appointed by the government yet can operate independently. They were given powers by the Financial Services and Markets Act 2000 in 2001. As with most ombudsmen, the role of this one is to help settle disputes between consumers and UK-based businesses that offer financial services.

This includes money transfer services, finance companies, financial advisers, insurance companies, building societies and banks. However, money transfer companies only entered the responsibilities of the FOS in November of 2009

The headquarters of the FOS is in London, the United Kingdom, and the Chief Ombudsman is Nausicaa Delfas. The organisation is funded via a combination of case fees and statutory levies. These are paid by financial institutions regulated by the Financial Conduct Authority.

What Is the FOS Responsible for?

This section covers the various responsibilities of the FOS. This will inform you about why the organisation exists and how money transfer customers can benefit from them. Overall, sending money to the UK is a safer practice because they help resolve disputes.

According to the data released by the FOS, around 200 businesses are responsible for approximately 90% of the complaints. Also, about 90% of the disputes that the FOS take part in are resolved during the early informal stages. This dramatically reduces the workload on the organisation and promotes trust in the money transfer industry.

FOS Regulations

This section covers the regulations, crimes and industries relevant to the FOS. This allows you to figure out what the FOS is about at a glance and where their responsibilities end. In addition, consumers of money transfer services can benefit by learning about the type of help available to them.

• Regulations: the powers that the FOS acts with were handed down as part of the Financial Services and Markets Act 2000. They received these powers in 2001, allowing them to hand out fines and make critical decisions on the outcome of a case.

• The FOS is also covered by the Freedom of Information Act 2000 as of November 2011. Also, the board of the FOS is appointed by the Financial Conduct Authority. The board has the task of ensuring that the FOS remains independent and impartial in all of its cases.

• Crimes: the FOS deals with all types of issues, and financial crimes might be included among the cases they receive. However, rather than dealing with serious financial crimes, those cases might be passed down to the relevant authorities instead of dealing with serious financial crimes. The FOS primarily deals with disputes and complaints.

• Industries: the FOS covers complaints regarding most organisations that provide financial services. This includes money transfer services, finance companies, financial advisers, insurance companies, building societies and banks.

• Accountability: as mentioned above, the FOS has its board appointed by the Financial Conduct Authority, which means that is where the accountability lies.

RBA

The RBA is Australia’s central bank and the authority that issues banknotes. The role was assigned to this entity on the 14th of January 1960 due to the Reserve Bank Act 1959. The act removed the Commonwealth Bank from the role.

The headquarters of RBA is in the Reserve Bank of Australia Building in Sydney. The state has 100% ownership of the organisation, and the Governor is Philip Lowe. Also, the target interest rate for the bank is 1.35%.

The RBA is responsible for the functioning of specific legislation. They are the statutory authority of the banking industry and are established by an Act of Parliament, the Reserve Bank Act 1959. They make the rules of the banking industry and ensure that all banks operating in Australia follow them.

What Is the RBA Responsible for?

This section takes a closer look at the responsibilities of the RBA. Here you can find out their role and how they ensure that the Australian economy continues functioning correctly.

Overall, the RBA is an integral part of the Australian financial markets. Their responsibility is arguably the biggest among the regulators. They also manage the gold and financial reserves of the Australian Government. It is estimated that the net worth of the Australian Government is around 101 billion AUS. Therefore, the RBA has an immense responsibility in the economy; without their oversight, it would be difficult to have stability.

RBA Regulations

Now let us dive deeper into the specifics of the RBA. This will help you understand the relevant regulations, crimes, industries and accountability. At a glance, you can get a good sense of the scope of the RBA and where their responsibilities might end.

• Regulations: The governance structure of the RBA is laid out by the Reserve Bank Act 1959, and according to those rules, the Governor is in charge of the Bank. Part of the responsibility includes managing a payment system policy.The Governor also has the responsibilities laid out in the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This relates to the management of the bank, which the Audit Committee and Remuneration Committee check.

• Crimes: The RBA does not deal with crimes since they are in charge of bigger-picture legislation to get the economy balanced. However, some policies they pass can help reduce the chances of criminals taking advantage of Australia’s financial system.

• Industries: Since the RBA is in charge of the entire economy of Australia, it means that they are involved in all sectors and any consumer that uses AUS for transactions. This also includes money transfer companies and customers that use them. Examples of these companies include Wise, WorldRemit and TorFX.

• Accountability: Since the RSB is an independent central bank, they are accountable to the Parliament. Also, the Reserve Bank Act 1959 states that the bank must consult with the Australian Government.

IIROC

The IIROC is classed as a non-profit organization and a national self-regulatory organization. They were established through the merger of Market Regulation Services Inc. and the Investment Dealers Association of Canada. They primarily oversee the trading activity and investments in the Canadian debt and equity markets.

Formed in 2008, its headquarters are in Toronto, Ontario, Canada, and its yearly budget is CAD 101.237 million based on 2020 data. The CEO is Andrew J. Kriegler.

The IIROC gets its direction from the Canadian Securities Administers, an umbrella organization of Canada’s provincial and territorial securities regulators. The IIROC has quasi-jurisdictional powers as it sets the regulatory and investment industry standards. However, the organization has received some criticism that it is not an effective regulator.

What Is the IIROC Responsible for?

Now let us turn our attention to the responsibilities of the IIROC. This section will help you better understand the importance of the regulatory body. Therefore, you can have more confidence in the Canadian financial markets when transferring funds.

The vision of the IIROC is:

• To create a culture that attracts the best employees in the industry

• Holding the title of an industry-leading regulator

• Gaining the trust of stakeholders by being respected and valued

• Improving the efficiency of Canadian regulations

• Reducing wrongdoing and offering more confidence through robust tools

IIROC Regulations

This section delves deeper into the specifics of what the IIROC is responsible for and where they end. Therefore, money transfer customers can better understand how the organization can serve them when interacting with Canadian financial markets.

• Regulations: the IIROC provides clear rules and regulations that indicate how members should conduct themselves while operating in the investment markets. They are classed as a self-regulatory body, which means that they have some degree of regulatory authority. However, the government has not handed down their ability to enforce the rules. Overall, the IIROC operates under the auspices and orders of the Canadian Securities Administrators.

• Crimes: the IIROC deals with crimes and rule-breaking relating to firms and individuals using the investment markets. This can include trading in bad faith or manipulating the markets unfairly.

• Industries: the IIROC is limited to the debt and equity market. The specific scope of their task ensures they are in the best position to hold the participants of the markets accountable.

• Accountability: the IIROC is accountable to the Canadian Securities Administrators and investors who want to use brokers to make investments in the market.

FINTRAC

FINTRAC is the national financial intelligence agency of Canada. They were established in 2,000 as a result of the Proceeds of Crime (Money Laundering) Act to help investigate and detect money laundering. However, the organization was consequently expanded to include other financial crimes in its list of responsibilities.

The FINTRAC headquarters are in Ottawa, Ontario, Canada, and they have 342 employees. Also, their annual budget is $51.5 million, and the agency executive is Sarah Paquet. The parent agency of FINTRAC is the Department of Finance, with whom they work closely on several issues.

Since June 2002, FINTRAC has been a member of the Egmont Group of Financial Intelligence Units. This is an international organization that has the aim of providing organizations for intelligence agencies around the world. Collaborating with intelligence agencies abroad enables FINTRAC to protect the Canadian financial markets better.

What Is FINTRAC Responsible for?

Now let us turn our attention toward the various responsibilities of FINTRAC so you can better understand how they can help protect money transfer customers. You will see that they are an essential regulator in the Canadian economy.

Under Bill C-25 in 2006, FINTRAC’s responsibilities were expanded to:

• Create a registration scheme for money transfer companies and foreign exchange dealers.

• Create new offences for not registering with their organization.

• Enhance client identification and record-keeping practices.

Back in 2009, FINTRAC estimated that annually the total amount laundered is about $5 to $15 billion, and since then, it has most likely increased. Overall, FINTRAC analyzed 19 million transactions per year, and in 2017 they disclosed 2,000 of them to the police forces.

FINTRAC Regulations

This section analyses the specific aspects of the FINTRAC that allow you to understand the organization at a glance. You can figure out why it is a noteworthy regulator in protecting the integrity of the Canadian economy.

• Regulations: FINTRAC reports to the Parliament of Canada via the Minister of Finance. Additionally, the Proceeds of Crime (Money Laundering and Terrorist Financing) Act states that the Privacy Commissioner of Canada must audit FINTRAC. This is also the act they must follow to enforce the rules and catch questionable transactions.

• Furthermore, FINTRAC’s activities are monitored by the National Security and Intelligence Review Agency and the National Security and Intelligence Committee of Parliamentarians.

• Crimes: FINTRAC may spot various financial crimes through its monitoring system. However, they focus on money laundering and terrorism financing. When questionable transactions are found then, FINTRAC reports them to the authorities.

• Industry: FINTRAC deals with all transactions entering and leaving the Canadian border. Therefore, they are arguably involved with all sectors of the Canadian economy. Automated systems help FINTRAC deal with the large volume of transactions they need to monitor annually.

• Accountability: FINTRAC is accountable to the Government of Canada; more specifically, they report to the parliament. Also, the various government-appointed organizations monitor FINTRAC’s activities to ensure they are fulfilling their responsibilities correctly.

FCAC

The FCAC is an agency set up by the Government of Canada to enforce the law on consumer protection of financial products. They provide support and information so consumers can better understand their rights. It means consumers can determine what laws protect them against money transfer companies.

The FCAC was formed in 2001, and its headquarters are in Ottawa, Ontario. They have 209 employees and an annual budget of 45.9 million CAD. The agency executive is Judith Robertson, and they monitor financial institutions that are federally regulated.

You can get a complete list of financial institutions that fall under the scope of the FCAC from the Office of the Superintendent of Financial Institutions. The creation of the regulatory body came from a long period of study regarding the financial sector's stability.

What Is the FCAC Responsible for?

Now let us take a closer look at what the FCAC is responsible for and its primary duties. Once you learn about the vital work the FCAC does to protect consumers; you can better trust the financial markets when sending money to Canada.

The work that the FCAC is tasked to accomplish is set out by the Financial Consumer Agency of Canada Act. The two main elements of the act include monitoring the compliance of federally regulated financial institutions and improving the nation’s financial literacy.

The Commissioner of the FCAC has a five-year term that they report annually to the Parliament of Canada via the Minister of Finance. The report must include the FCAC’s performance and the financial institutions that they are responsible for overseeing.

FCAC Regulations

Now let us delve deeper into the scope and limitations of the FCAC. This section shares essential aspects of the work they do at a glance. Therefore, money transfer consumers can easily learn why the FCAC is a substantial regulatory body.

• Regulations: The regulatory powers of the FCAC are strong because they are an organization created by the Government of Canada. The acts that indicate the regulations they can enforce include the Bank Act, the Insurance Companies Act, the Trust and Loan Companies Act, the Cooperative Credit Associations Act, the Green Shield Canada Act, the Payment Card Networks Act and the Financial Consumer Agency of Canada Act.

• Crimes: The FCAC does not directly deal with crimes such as money laundering and theft. However, it can report such crimes to the relevant authorities. Instead, the FCAC deals with financial violations of the acts listed above.

• Industries: The industries covered by the FACA include banks and federally governed financial institutions. You can view the complete list of entities it oversees from the Office of the Superintendent of Financial Institutions.

• Accountability: The FCAC is accountable to the Government of Canada. More specifically, the Governor reports to the Parliament annually about their performance.

CFR

The CFR is the organisation that is responsible for coordinating the leading financial regulatory agencies in Australia. This promotes information sharing between various regulators to do their jobs more effectively.

The CFR does not have policy or regulatory decision-making powers, so it is a non-statutory group. The regulatory power lies with the regulators that the CFR is responsible for coordinating. It means that they might not have direct involvement in enforcing rules but have a significant indirect role.

The regulatory bodies have a bilateral coordination agreement and are supported by the Memorandums of Understanding. This allows the CFR to do its job with the backing of each regulatory body.

What Is the CFR Responsible for?

This section summarises the various responsibilities of the CFR. This enables money transfer customers to understand better how the CFR plays a role in promoting the health of the Australian financial markets. The responsibilities of the CFR include:

The CFR is responsible for the coordination of 4 regulators, which include the Reserve Bank of Australia (RBA), the Treasury, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).

These are the central regulatory bodies of Australia that create new rules, enforce current ones and ensure that no criminal activity is taking place. Overall, they promote the health of the Australian economy, which should allow money transfer customers to have confidence in it.

CFR Regulations

Now let us examine specific parts of CFR to understand their scope and limitations better. This provides you with a few facts that will help you understand where the CFR focuses its efforts.

• Regulations: The Charter sets out the responsibilities of the CFR. They also use the expertise of non-member government agencies to complete their work where appropriate. There is an agreement between the regulators setting the framework for how the CFR is allowed to coordinate efforts between them.

• Crimes: The CFR does not deal with stopping crime directly. However, they can coordinate efforts of the relevant regulatory bodies to stop crimes where they are having a significant impact on the Australian financial markets.

• Industries: Since the CFR coordinates the four biggest regulators in Australia; then their reach extends to all sectors. This means they need to have their pulse on the entire scope of the Australian economy.

• Accountability: The CFR is accountable to the Government of Australia, the regulators within the system, the businesses and the consumers of the financial markets. However, legal accountability lies with the Parliament.

PC

PC, also known as Canadian Payments Association, is a Canadian settlement system and payment clearing organization. The entity was established as a result of the Canadian Payments Act in 1980, and its primary responsibilities include regulating and maintaining directories of routing numbers in Canada.

A total of $50.8 trillion was settled and cleared across 7.4 billion transactions in 2016, which means that $201.5 billion changes hands on each business day. This means that Payments Canada is an important organization for ensuring the Canadian financial markets run smoothly.

The organization was formed in 1980, and the CEO is Tracey Black. The parent departments include the Department of Finance and the Bank of Canada. These are the organizations to which PC is accountable.

What Is PC Responsible For?

This section will showcase the primary responsibilities of PC. This allows users of the Canadian economy to figure out why they can trust the system's integrity and send money without worrying that it will get lost. According to the Canadian Payments Act, the duties of PC include:

PC has a strategy for ensuring the above objectives are met to create a modernized payments infrastructure that will benefit Canadians and consumers of international money transfer companies.

The system that PC uses includes Lynx, which is the primary clearing system for large-value and time-critical CAD transactions. It’s regulated by the Bank of Canada and uses an electronic wire system.

Furthermore, the retail batch payment system consists of ACCSS (Automated Clearing Settlement Systems) and U.S. Dollar Bank Bulk Exchange. ACCSS is commonly used for handling cheques and electronic payments such as pre-authorized debit and bill payments, online payments, point-of-sale transactions, ATM withdrawals and direct deposits.

Payments Canada Regulations

This section will help you get to know Payments Canada at a glance. You can also learn about the regulations that dedicate their mandate and the industries they are involved in.

• Regulations: the regulations that relate to Payments Canada include the Payment Clearing and Settlement Act. This act became law on the 31st of July 1996 and is overseen by the Bank of Canada. The act ensures that payments are correctly settled with the correct recipient of the funds.

• Crimes: Payments Canada does not monitor, report, or deal with crimes. They are simply an organization tasked with creating and maintaining a payment system that allows Canadian and international users to send and settle payments.

• Industries: Payments Canada is involved with all sectors in Canada because its system enables every participant to send and receive funds. In fact, with the systems maintained by Payments Canada, businesses would find it impossible to do business in Canada.

• Accountability: Payments Canada is directly accountable to its parent organizations, the Bank of Canada and the Department of Finance.

CDIC

Parliament created the CDIC in 1967, and it is a Canadian federal Crown Corporation, meaning it has a mixture of public policy and commercial objectives. The idea behind creating the CDIC is to offer insurance to commercial banks and savings institution depositors. This should provide confidence in the Canadian banking systems because if a bank were to go under, then depositors can get their funds back through the CDIC.

The insurance in the case of bank failure is up to 100,000 CAD, and the insurance is automatic. Therefore, every account holder of these financial institutions is covered. In addition, the CDIC provides insurance for various saving types, and the bank must be a member of the CDIC.

The headquarters of the CDIC is in Ottawa, and the agency executive is Robert Sanderson. Also, they are accountable to the Government of Canada, which means it is a legitimate regulatory body in the Canadian financial markets.

What Is the CDIC Responsible for?

Now we will delve deeper into the responsibilities of the CDIC. You will find out how they safeguard consumers of the Canadian banking system to ensure that their money is protected against unforeseen events.

The type of financial institutions the CDIC accepts into their membership include banks, loan and trust companies governed by the Cooperative Credit Associations Act, and federally regulated credit unions.

The CDIC is not a bank or a private insurance company. Instead, they are funded by the premiums that member institutions pay, and there is no financial help from the general public. This shows they are set up to benefit the public without forcing them to pay extra insurance costs.

CDIC Regulations

This section highlights specific aspects of the CDIC so you can better understand them at a glance. In addition, it allows you to figure out the scope of their operation and where the responsibilities end.

• Regulations: the CIDC act ensures that the organization can use its powers to create the rules and laws it operates. They make various by-laws which specify how they resolve problems that fall into their domain.For example, when foreign currency funds are lost in bank accounts, they need to determine what exchange rate will be used to convert that amount into CAD.

• Crimes: the CDIC does not deal with crimes, they are simply a financial organization that insure depositor money in their member financial institutions.

• Industry: they welcome a wide variety of financial institutions into their membership scheme, which includes banks and federally regulated credit unions.

• Accountability: the CDIC is accountable to the Government of Canada. Also, they serve the general public since that is their organization's purpose.

AUSTRAC

AUSTRAC is an agency appointed by the Australian Government that deals with protecting various aspects of financial transactions within Australia. This includes tax evasion, money laundering, organised crime, terror financing and welfare fraud.

AUSTRAC was established in 1989 due to the Financial Transaction Reports Act 1988. The regulatory body has over 300 employees, and the agency executive is Nicole Rose. Their headquarters are in Sydney, and they actively monitor transactions of over $10,000.

Therefore, money transfer customers that send large amounts of money to Australia may have contact with AUSTRAC. They usually require the transactions to be documented and the reason for the transfer stated. The reports must be made with AUSTRAC within ten days of the transfer's execution.

What Is AUSTRAC Responsible for?

This section will take a deeper look at the responsibilities of AUSTRAC. This allows international money transfer customers to determine how their transactions are protected when sending funds to Australia. The primary responsibilities of AUSTRAC include:

• Using intelligence capabilities to gather information about transactions and follow up on questionable entries.

• Information about crimes is shared with law enforcement agencies so they can better do their jobs in catching the criminals.

• Developing new strategies to deal with the constantly evolving technological landscape within the finance sector

• Look for vulnerabilities in the Australian finance sector and work with companies to plug them.

• Support money transfer companies, businesses and other financial organisations to meet regulatory requirements.

• Works with other domestic and international regulators to ensure that the Australian financial system is protected from criminal activity.

AUSTRAC can protect international money transfer customers by spotting fraudulent transactions leaving their accounts. For example, if an account were hacked, funds leaving the account could be stopped or frozen before too much damage is done.

In some cases, AUSTRAC may facilitate investigating where lost money has gone in an attempt to retrieve it for money transfer customers. However, reversing or stopping criminal activity is not always possible – AUSTRAC does its best to protect the general public and businesses alike.

AUSTRAC Regulations

Now let us focus on the regulations, crimes, and industries that AUSTRAC is involved with. This will give you easy access to information about where this regulatory body is effective.

• Regulations: the legislation that AUSTRAC is involved with includes AML/CTF Act, AML/CTF rules, Public Legal Interpretations, Financial Transaction Reports Act and Industry Contribution Legislation.

• Crimes: AUSTRAC works hard to protect the general public and businesses from a variety of crimes, which include tax evasion, money laundering, organised crime, terror financing and welfare fraud. They also oversee Australia’s gambling industry and work on the crimes reported in that sector.

• Industries: AUSTRAC is involved with businesses that are used to send or receive money in Australia. This includes regular companies and financial institutions like banks.

• Accountability: Ultimately, AUSTRAC is accountable to the Australian Government, the people that use the financial system in Australia and the businesses within the country.

ASIC

ASIC was founded on the result of the Australian Securities and Investments Commission Act of 2001. It is an independent governing body responsible for overseeing Australia's financial services and markets.

Businesses must be aware that ASIC is active in regulating all business areas, not just the financial markets. Therefore, they regulate all Australian companies, which include foreign-owned businesses. In addition, every state capital has a service centre from the ASIC regulatory body.

What Is ASIC Responsible for?

Now let us focus on the responsibilities of ASIC so you can better understand how they help protect customer money during international money transfers. Learning about the regulatory responsibilities of ASIC provides faith in the trustworthiness of money transfer companies. The primary responsibilities of ASIC include:

• Maintaining and improving the performance of the financial system.

• Installing and maintaining confidence in the financial system.

• Create and enforce minimal procedure requirements.

• Help with the process of registering companies and providing that information publicly.

• Enforcing the law, which includes handing out criminal and civil penalties.

ASIC provides consumer education that can be utilised by money transfer company customers to learn how the regulatory body protects them. Also, they provide general advice about how to manage money and follow smart money-saving practices. For example, those without education in how to manage personal fiancés can turn to ASIC for guidance.

ASIC Regulations

Now let us turn our attention to the regulations, crimes, and industries that ASIC oversees. This section provides context for the scope of their operations and how they protect money transfer consumers.

• Regulations: ASIC has the responsibility of upholding the laws set by the Australian Government. The laws grant ASIC formal powers to hand out penalties or prosecute criminally. The regulations are constantly updated, and in 2019 they were strengthened to give ASIC more powers when regulating the Australian financial markets.The regulatory powers that ASIC uses include the Australian Securities and Investments Commission Act 2001 (ASIC Act), Corporations Act 2001 (Corporations Act), Superannuation Industry (Supervision) Act 1993, National Consumer Credit Protection Act 2009 (National Credit Act), and the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 (Better Advice Act)

• Crimes: ASIC protects against a wide range of crimes in the Australian financial markets, which include fraud, money laundering, overcharging of fees, mismanagement of customer finances, charging for additional insurance policies, and providing inadequate systems. As technology develops and financial systems change, the specific crimes that ASIC handles will also change.

• Industries: ASIC is in charge of monitoring any businesses that take part in financial markets. This includes insurance companies, deposit-taking institutions like banks, and superannuation. Their scope is vast, and they complete their duties with the help of other regulators like the Australian Prudential Regulation Authority.

• Accountability: Ultimately, ASIC is a regulator the Australian Government has appointed—meaning they are accountable to them, and that is the authority to whom they answer.

APRA

APRA is the Australian financial services industry prudential regulator and the Australian Government’s statutory authority. This means they are responsible for creating a framework that focuses on the financial safety and stability of the broader financial system in Australia.

The APRA was established on July 1st, 1998, based on the recommendation of the Wallis Inquiry. Their headquarters are in Sydney, New South Wales, with 586 employees. The jurisdiction of the APRA includes the Commonwealth of Australia.

The executives at the APRA include Wayne Byres (chairman), Helen Rowell (deputy chairman), John Lonsdale (Deputy Chairman and Margret Cole (member). The regulatory bodies that preceded the APRA include the Insurance and Superannuation Commission, the Reserve Bank of Australia and the Australian Financial Institutions Commission.

What Is the APRA Responsible For?

In this section, we will cover the primary responsibilities of APRA and how they work to protect the integrity of the Australian financial system. In summary, the APRA oversees:

• Life insurers

• General insurers

• Authorised deposit-taking institutions like building societies, banks and credit unions

• Friendly societies, private health insurers

• Reinsurance companies

• Superannuation funds

The APRA has the task of protecting the interests of superannuation fund members, policyholders and depositors under the legislation that the APRA administers. Additionally, they promote the financial system's stability by working in close proximity with the Reserve Bank of Australia, Australian Securities and Investments Commission and Australian Treasury.

Furthermore, the APRA has the duty of being the financial sector’s national statistical agency. The data is collected for internal uses and the Australian Bureau of Statistics, and the Reserve Bank of Australia. The data is provided in their statistical publications.

APRA Regulations

In this section, we will provide you with an in-depth look at the specific laws that the APRA is responsible for upholding, the crimes to protect against and what industries it oversees.

• Regulations: the APRA is responsible for operating under the laws of the Australian Government. The laws provide the APRA with formal powers that can be used to enforce the law on behalf of the Australian Government.

• The APRA has created a prudential framework for the banking, insurance and superannuation industries. Additions and changes to this framework go through a period of public debate and consultation before being set in stone.

• Crimes: crimes the APRA protects against are completed with other Australian regulatory bodies. However, it takes part in stopping money laundering, unauthorised banking practices, theft, identity fraud and counterfeit activity.

• Industries: the industries that the APRA is in charge of overseeing include authorised deposit-taking institutions (banks, credit unions), general insurance, life insurance and friendly societies, private health insurance and superannuation.

• Accountability: the APRA is accountable to the Australian Government. They provided the APRA with the relevant powers by law to carry out their duties.

AFCA

The AFCA is an external dispute resolution scheme aimed at helping resolve disputes that were not successful via member financial services organisations. The organisation was formed on the 1st of November 2018, and its headquarters are in Melbourne, Victoria, Australia.

The Chief Ombudsman is David Locke, and the AFCA replaced three other schemes which existed at the time. These include Superannuation Complaints Tribunal, Credit and Investments Ombudsman, and the Financial Ombudsman Service.

All banks and money transfer companies that want to participate in the Australian financial markets must have a membership with the AFCA. Also, the organisation is governed by a board of directors and has an equal number of consumer and industry representatives. This means the board has voices from the consumers using money transfer companies and the businesses that run them.

What Is AFCA Responsible for?

Now let us turn our attention toward the responsibilities of the AFCA. This will provide insight into how the AFCA supports the money transfer industry. Therefore, you will have more confidence in using the Australian financial system.

The AFCA is not a regulator, so they do not have powers handed down from the Australian Government. However, they have more of a supportive role in managing the Australian financial markets. Also, they are not a for-profit organization.

They are responsible for all aspects of the Australian financial markets. This means welcoming businesses from any financial industry and dealing with many complaints. Their responsibility is to process claims as fast as possible to achieve an adequate resolution. When both parties feel like they have been heard, this promotes trust in the Australian economy.

AFCA Regulations

This section will include various aspects of what the AFCA covers. Therefore, you can better understand the organization's scope and where its responsibilities end.

Regulations: since the AFCA is not a regulator, they are not responsible for ensuring that specific regulations are upheld. However, they accept all types of cases within the entire spectrum of Australian financial market regulations. The nature of a complaint can mean that several regulations might be broken. Also, the AFCA looks closely at whether specific laws have been breached before reaching a verdict.

Therefore, the AFCA needs to understand the specifics of all financial regulations to deal with cases effectively and reach a fair conclusion.

Crimes: the AFCA does not deal with crimes since that is the role of regulators. Instead, they deal with complaints mainly about rule-breaking issues and disagreements about specific laws. For example, some financial rules have a lot of nuance and interpretation, so conflicts between businesses and consumers can arise. The AFCA ensures that these conflicts are resolved, and a fair version of the regulation in question is used.

Industries: the industries that the AFCA covers include credit, loans, finance, insurance, banking deposits and payments, investments, and financial advice and superannuation. They cover all aspects of these industries, so consumers and businesses can file complaints about any issue.

Accountability: the AFCA is accountable to the Australian Government, the businesses, and people using the Australian Financial markets. The board of directors has an equal amount of consumer and industry experts, so each side is fairly represented.

A bit more on international wire transfer regulations

Sources & further reading

• U.S. Securities and Exchange Commission (SEC)

• Federal Reserve Board (FRB)

• Office of Thrift Supervision (OTS) - Now part of the OCC

• Office of the Comptroller of the Currency (OCC)

• National Credit Union Administration (NCUA)

• Financial Industry Regulatory Authority (FINRA)

• Financial Crimes Enforcement Network (FINCEN)

• Federal Reserve System (FED)

• Federal Deposit Insurance Corporation (FDIC)

• Financial Conduct Authority (FCA)

• Bank of England (BOE)

• Prudential Regulation Authority (PRA)

• Payment Systems Regulator (PSR)

• Financial Services Compensation Scheme (FSCS)

• Financial Policy Committee (FPC)

• Financial Ombudsman Service (FOS)

• Reserve Bank of Australia (RBA)

• Investment Industry Regulatory Organization of Canada (IIROC)

• Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

• Financial Consumer Agency of Canada (FCAC)

• Council of Financial Regulators (CFR)

• Payments Canada (PC)

• Canada Deposit Insurance Corporation (CDIC)

• Australian Transaction Reports and Analysis Centre (AUSTRAC)

• Australian Securities and Investments Commission (ASIC)

• Australian Prudential Regulation Authority (APRA)

• Australian Financial Complaints Authority (AFCA)

• Anti-Money Laundering Compliance Program

• IRS

• Financial Crimes Enforcement Network

• ConsumerFinance.gov