Learn how to send and receive money from/to Laos …
With the world emerging as a global village, the people are involved in more international money transfers than ever before. Transfer of money from one country to another appears to be a hectic task, with the bundle of formalities and technical requirements. However, the steady speed of technology and advancement is trying to minimize those heavy barriers.
The purposes and the legal procedures are varied concerning the particular task, but there are some generalized principles accepted internationally to send and receive money. Transfers such as remittance, paying the fees of the foreign university or medical expenses, and lastly the bill payments of import-export, come under the umbrella of international transfer.
Q&A : Sending money and transfers from and to Laos as a foreigner ?
👮 Will my international transactions be approved and controlled by the local government?
Yes. All international money transfers are controlled by the central bank of Laos, which means that every international transaction you initiate must comply with the local regulations. If the origin of the money you want to send abroad is proven, then you will have no trouble finding a justification to be able to make an international transfer. If of course you are not able to justify the origin, then everything is likely to be more difficult.
💰 What is the easiest way of transferring money to and from Laos?
The easiest and fastest method of carrying out international transactions is transferring money through various online services, such as PayPal, MoneyGram, Western Union, and other. Nevertheless, there are more innovative solutions that legally reduce the costs of the transfer. Indeed, for each money transfer to a foreign country, the banks often take high commissions in processing fees and currency conversion. Whether it is a transfer to or from Laos, we will present two alternatives that have been tested and approved by expatriates in Laos.
🤔 Will I be charged a commission?
Yes. Many local banks as well as foreign ones change a commission percent and/or a flat fee. Please ask your bank for more details about commission rates. This is why you need to compare different banking institutions in order to see by yourself the significant costs generally retained for to handle these transfers:
- fees to confirm the transfer;
- fees for receiving the currency on the foreign account;
- currency conversion fees if required.
Laos payment criteria
Taking into account, Laos, the mountainous Southeast Asian country, has the proper procedures and the methods to carry out the foreign money transactions, it is evident that multiple perspectives are attached to the transfer. Looking at the legal aspect of sending and receiving the money to a foreign country, there are specific rules and regulations by every country.
The rules are almost alike and take into consideration the basic requirements. The legal formalities include the authorities in charge of the foreign exchange, such as the Financial Conduct Authority (FCA) in the UK, which is responsible for regulating and overviewing foreign exchanges. In the same manner, Laos has a well-maintained authority, that controls and looks over the cash transfers whether sent or received from abroad.
Moreover, a safe and secure transfer is also the main concern of the authorities in charge. The Laos government gives a lot of attention to maintaining a safe experience for both the sender and the recipient. For standardizing the transfer, a taxation fee is also charged for the transfer, that is deducted from the amount sent. An important aspect of the transfer is, providing the correct information, as incorrect information can sometimes lead to turning the transfer into a criminal offense. Lastly, knowing the options available for both sending and receiving payment from abroad, is also a vital tenet of the process.
Online payment methods from America to Laos
Considering the United States of America as the sender and Laos as the receiver. Some criteria of banking services are as follow :
- The procedure of delivery: when sending money from the United States of America, the currency should only be US dollars and once it arrives at Laos it needs to be exchanged in their local currency.
- Advantages: In regional banks, money transfer facilities are available in both Laos and America. Although, you need to go in person to the bank campuses for collecting pricing details.
- Transfer system: For assistance in transferring payment, you may get help from the agency consult person. They open your online account for consistent payments.
- Charges: There are no fixed charges to any bank transfer, but it can change depending upon the nature of bank transfer.
- Executive support: The chat and email support agents are awaited to entertain your queries and they better assist you. In further assistance, you can be directed to the call service agents.
Bank procedures in Laos
Laos is an advanced country with a huge room for technology while preserving traditional methods. After doing a beforehand research of the laws and requirements, now, it’s time to narrow down the ways and channels, which will work as the medium to send and receive the money. Numerous online and offline platforms provide their services in this matter.
First and the most old-style method is, contacting a bank and using them as the moderator for the transfer. The central bank of Laos, Bank of the Lao P.D.R., located in Vientiane, the capital city of Laos, handles all the matters that are related to the money transfer, whether the foreigner is making a transfer to Laos, or the other way around. In both cases, the central bank monitors the transfer to avoid any kind of discrepancy.
Bank accounts in overseas
The Lao residents are allowed to open their bank accounts in any other country but before attempting this act, they should get permission from the Lao PDR. Taking into account, some highlighted reasons for approval are:
- Foreign businesses like transportation of sea, air, or ground.
- Startup in overseas or opening any branch there (must be approved).
- Several PDR (Bank of the Lao) regulatory purposes
Online money transfer methods
However, now, online platforms are providing more feasible methods to carry out transactions using only smartphones. Websites such as Western Union, PayPal, MoneyGram, and Transfer Wire, are in constant motion of making the humongous transfers a very client-friendly task. A wide range of websites like the ones mentioned above is accepted by Laos. The working of the online mediums has been flourishing in recent years. People are opting for various sites such as World Remit, Skrill, TransferWise, and Monito to conduct the monetary exchange of any kind in a very short period.
Acts that are prohibited
Some general acts that are strictly prohibited in the Lao PDR when you are an individual or running your business in a team are listed below:
- Unapproved business operations
- Consulting with a money exchange agency who does not have rights and make their own exchange pricing
- Account opening without approval as mentioned above
- Availing the loans on uninformed call out from external resources
- Except for these, any other act that disrupts the law of the LAO PDR
To sum up, globalization has created a great room for international money transfer. It has revolutionized not only the volume and extent of the international money exchange but also the speed of these transactions.
Laos, being a developing country has been avid in adopting foreign currencies and exchanging its currency. After evaluating the modes of transactions, it is evident that the people of Laos are accepting new modes of cash transfer and helping the country to uplift and modernize its economy as a whole.