Laos, RoK partner to facilitate cross-border money transfers

Laos and the Republic of Korea (RoK) are cooperating in a pilot project to facilitate cross-border money transfers for Lao workers abroad and foreign workers in Laos.

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This move comes as Lao employees abroad often face numerous barriers when dealing with cross-border money transfers, including difficulties in opening foreign bank accounts, complex transfer documentation procedures, and high transfer costs, Laotian Times reported.

These challenges have led to the use of unauthorised and often risky money-transfer channels, frequently resulting in unfavourable exchange rates and unscrupulous brokers that can harm the interests of Lao workers abroad.

To overcome these hurdles, the Lao Ministry of Labor and Social Welfare, in conjunction with the Bank of Lao PDR, has long been researching effective mechanisms, tools, and payment channels. The goal is to create a more convenient system for workers sending money back to Laos through the banking sector.

Such a system will not only simplify the process but also enable the government to monitor transactions, collect data, and formulate more effective policies and management procedures.

This collaborative effort marks a vital step toward improved financial management for Lao workers abroad and foreign workers in Laos. It also promotes the use of formal banking channels, enhances currency stability, and reduces potential gaps in public sector management that could impact the national economic system./.

VNA