Policy and Regulatory Framework for Remittance - Fiji

This report provides a brief overview of the policy and regulatory framework for remittances in Fiji. It examines foreign exchange licensing rules and regulations, rules relating to mobilization of deposits by non-bank institutions, prudential regulations affecting non-bank sector growth, tax treatment and incentives relating to migration and remittances. Key characteristics of the regulatory framework include:

• Regulations focused on outward remittances and the prevention of money flow out of Fiji;
• Some unexplored areas of remittance policy such as tax affairs and the need for further investigation;
• Disincentives exist in the areas of foreign exchange controls and amounts delegated for migrants travel allowance;
• No specific incentives to promote remittance inflows.

In the coming years, remittances are likely to become a major contributor to household income in Fiji. However, the government has not put in policies to support labor mobility and facilitate remittances from Fijians working overseas. The report recommends that the government and policy makers should focus on this area.