The U.S.–Mexico Remittance Corridor : Lessons on Shifting from Informal to Formal Transfer Systems

• Main Author: Hernández-Coss, Raúl
• Format: Publication
• Language: English
• Published: Washington, DC: World Bank 2005
• Subjects: ACCOUNTING; BANK ACCOUNTS; BANKING INSTITUTIONS; BANKING SYSTEM; BANKS; CENTRAL GOVERNMENTS; CERTIFICATES; CHECKING; CITIES; CLEARANCE; CLEARING HOUSE; COMMERCIAL BANKS; COMMUNITIES; CONFIDENTIALITY; CREDIT INSTITUTIONS; CREDIT UNIONS; CURRENT ACCOUNT; DEPOSITS; DEVELOPMENT; DEVELOPMENT FINANCE; DIRECT INVESTMENT; EMPLOYMENT; EXCHANGE RATES; EXPENDITURES; FAMILIES; FEDERAL DEPOSIT INSURANCE; FEDERAL DEPOSIT INSURANCE CORPORATION; FIELD RESEARCH; FINANCE MINISTERS; FINANCIAL ASSETS; FINANCIAL EDUCATION; FINANCIAL MARKET; FINANCIAL OPTIONS; FINANCIAL PRACTICES; FINANCIAL PRODUCTS; FINANCIAL SECTOR; FINANCIAL SERVICES; FINANCIAL SYSTEM; FOREIGN ASSETS; FOREIGN EXCHANGE; FUNDS TRANSFER; FUNDS TRANSFER SYSTEMS; GLOBAL DEVELOPMENT FINANCE; IMMIGRATION; INCOME; INFORMATION NEEDS; INSURANCE; INTEGRITY; INTERMEDIARIES; INTERNATIONAL FINANCIAL INSTITUTIONS; JURISDICTION; JURISDICTIONS; LAWS; LEGAL SYSTEMS; LESSONS LEARNED; MARKETING; MICROFINANCE; MIGRANTS; MONETARY AUTHORITIES; MONEY LAUNDERING; MONEY ORDERS; OFFSETTING; PARENTS; PARTNERSHIP; POPULATION GROWTH; PRIVATE SECTOR; PUBLIC POLICY; REGULATORY ENVIRONMENT; REGULATORY FRAMEWORK; SAFETY; SAVINGS; SERVICE PROVIDERS; SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION; SUBSIDIARY; SWIFT; TRANSPARENCY; WORKERS

Examining the experience of the U.S.-Mexico remittances corridor over the last eight years, this title derives specific lessons that could be applicable to other remittance corridors when shifting from informal to formal systems. Lessons focuses on a few selected aspects of the remittance experience and breaks down the remittance process into three stages: the First Mile, when decisions are in the hands of the remittance sender; the Intermediary Stage, comprising the systems that facilitate the cross-border transfer of funds, and; the Last Mile, where the funds reach the hands of the remittance recipient. By analyzing the objectives, obstacles, incentives, and changes occurring at each of these stages in the U.S.-Mexico corridor, lessons are drawn for other remittance sending and receiving countries that seek to encourage formalization of the flows.