The Canada-Caribbean Remittance Corridor: Fostering Formal Remittances to Haiti and Jamaica through Effective Regulation
Summary — This World Bank working paper examines the Canada-Caribbean remittance corridor, focusing on Haiti and Jamaica. It analyzes migration and remittance patterns, the regulatory framework, and provides policy recommendations to improve the integrity and efficiency of remittance flows.
Key Findings
- Remittances are a significant source of external financing for Caribbean economies, often exceeding ODA and FDI.
- Canada is a major source of remittances to Haiti and Jamaica due to its large Caribbean diaspora.
- The remittance market in Canada is dominated by MTOs, with increasing competition leading to lower transfer fees.
- Regulatory frameworks in Canada, Jamaica, and Haiti aim to balance AML/CFT requirements with financial access.
- Informal remittance channels still exist, but formal channels are becoming more prevalent due to increased competition and transparency.
Full Description
This World Bank working paper analyzes the Canada-Caribbean remittance corridor, with a specific focus on Haiti and Jamaica. It examines the role of remittance flows in Caribbean economies, the characteristics of Canada as a host country for Caribbean communities and a source of remittances, the remittance market landscape in Canada, Jamaica, and Haiti, and the regulatory frameworks governing remittance service providers in these countries. The study provides policy recommendations for government authorities to enhance knowledge of remittance flows, increase transparency, and create an enabling market environment through effective regulations and oversight.