COMPLIANCE issues have forced VCL Financial Services to put on hold its business relationship with World Remit for international money transfer services.
Sept. 15, 2021
2 min read
VCL Financial Services suspends business with World Remit
VCL Financial Services Managing Director, Palesa Mphunyetsane
- Accuses SA partner of violating compliance rules
- Given company time to sort itself out
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VCL Financial Services Managing Director, Palesa Mphunyetsane recently told the Metro that while they have partnered with World Remit for international transfers, the company was no longer complying with rules and regulations the two parties agreed on.
She was quick to show that VCL Financial Services has as a result, decided to temporarily suspend its cooperation with the company, in order to give it adequate room to sort its compliance issues out.
She, however, could not be drawn to go into details with the issues in question, only noting that their partners, World Remit were on the wrong.
“They are our business partners from outside of the country. We have suspended our business with them until they have dealt with the compliance issues. Our partnership with them is equally important because it helps clients in other parts of the world, particularly from the United Kingdom (UK) and Asian countries to transfer money,” Mr Mphunyetsane said.
For South African customers, she said VCL Financial Services has formed a partnership with Mukuru Money Transfer Services.
Earlier this year, VCL Financial services released a statement, suspending its services with its SA partners.
“Please be advised that VCL Financial Services has an agreement with World Remit for international money transfer services, which only allows for provision of inbound remittances from South Africa. It has since come to the attention of VCL Financial Services that World Remit allowed customers to send money from other countries. This then resulted in VCL Financial Services putting World Remit international money transfer services on hold.
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“VCL Financial services has obligations that need to be fulfilled before it can cater for international transactions outside of South Africa and until this is completed, we cannot implement or execute transactions beyond South Africa. We shall notify our customers once the services have been restored,” the statement further read.
To date, services with World Remit have not yet been restored.
Ms Mphunyetsane said not much is being lost through this suspension as the service was only beneficial to around 4 000 customers from elsewhere.
“It is a small percentage of our customers. Around 4 000 of our customers were receiving money through World Remit while we have over 980 000 customers who transact. But at the same time, we still appreciate it because every transaction is important, and that is why we still want them back,” she also noted.