On 15 May 2015 Dahabshiil made some slight adjustments to some of its commission fees for international money transfers, a FAQ brief published on the company’s website stated.
The new pricing structure, according to the brief, makes slight adjustments to the percentage charge on the exchange rate when sending money overseas for customers.
“On average, our fees have gone up by 1% which means we still remain highly competitive and in fact cheaper than many of our larger competitors,” it said.
Why a commission?
As is the case with every money transfer company, the company applies a small surcharge (commission rate) for each customer transaction. This surcharge covers the operational costs of running the business and the costs of meeting regulatory responsibilities.
In order for the company to continue providing the most efficient, secure and reliable service to customers, Dahabshiil occasionally reviews its transaction pricing structure.
It is the first time in over 15 years that Dahabshiil has made such a change to its prices.
There are a number of reasons, according to the statement, that justifies the decision, namely:
- The increased costs of meeting regulation
- The increased costs of managing and operating a UK wide cash operation
Dahabshiil has cause to state that it takes pride in providing the most efficient, secure and reliable service to customers at the best available rates.
In 2014, a report from the Overseas Development Institute (ODI) described some of the company’s competitors in the remittance sector as imposing a “super tax” on remittances to Africa, calling on the Financial Conduct Authority (FCA) to investigate.
Dahabshiil, Africa’s largest money transfer firm, was not, commendably, implicated as part of this report because the company’s commission fees were typically lower than the industry average.
Dahabshiil has a network of over 24 ooo operators and agents in 144 countries worldwide making it a most-trusted, formidable player in the remittance industry, internationally. The company provides a vital link between the Diaspora Somali and other African communities and relatives back home keeping an indispensible lifeline of remittances flowing.