Competition watchdog investigates high foreign exchange service fees
(2 October 2018 – Australia) The Australian Competition and Consumer Commission has launched an inquiry into the high cost of foreign exchange services.
Adding pressure on a sector already engulfed by a royal commission into misconduct in the industry the ACCC will investigate price competition among providers of foreign exchange services to consumers and small businesses, noting that the cost of sending money overseas from Australia was 11 percent higher than the average among G20 countries.
The assessment will focus on the purchase of foreign cash, the transfer of money overseas and whether there are “impediments to effective price competition” such as barriers to entry for service providers.
According to the World Bank, the cost of sending money from Australia is 13 percent higher than the UK and almost 40 percent higher than the US and is 11 percent above the G20 average.