The Canada-Caribbean Remittance Corridor

Fostering Formal Remittances to Haiti and Jamaica through Effective Regulation

Emiko Todoroki, Matteo Vaccani, Wameek Noor

• Publisher: World Bank Publications
• Year: 2009
• eBook ISBN: 9780821379233
• Edition: 0
• Topic: Business
• Subtopic: Business Development
• Index: Business

Several economies in the Caribbean region, especially from the lower-income group, are highly dependent on remittances. Between 1991 and 2006, the combined flows of total remittances reaching the Caribbean have averaged almost 17 percent annual growth, surpassing US$6 billion in 2005 and overtaking the region's total ODA and FDI inflows. In addition, remittances represent more than 20 percent of the domestic gross domestic product (GDP) in some Caribbean countries and have played a significant role in lessening both balance of payment deficits and the impact of natural disasters to which the region is particularly vulnerable. This study undertakes an analysis of the various dynamics underlying the Canada-Caribbean remittance corridor, including Caribbean migration issues and diaspora dynamics, remittance market landscapes, and regulatory frameworks. The study is intended to assist Canadian and Caribbean national authorities to sustain the continued growth and competitiveness of their remittance industries, while protecting them abuse by criminals. The study particularly emphasizes continued policy improvements in each country's regulatory framework to improve financial sector development and to enhance poverty reduction.

Table of contents

• Contents
• Foreword
• Acknowledgments
• Abbreviations and Acronyms
• Description of Terms and Key Business Models
• Executive Summary
• Key Statistics
• Introduction
• 1. Migration and Remittance Patterns in the Caribbean
• 2. Canada as a Country of Remitters
• 3. The Canada-Haiti Remittance Corridor
• 4. The Canada-Jamaica Remittance Corridor
• 5. Findings and Policy Considerations
• Appendixes
• Bibliography
• Table 1. World Bank’s Bilateral Remittance Corridor Analyses, 2008
• Table 2. Percentage of Total Expatriates, Highly-skilled Aged 15+
• Table 3. Point System Evolution, 1967–2003
• Table 4. Canada: Immigration as Percent of Population, 1967–2006
• Table 5. Top 10 Country of Origin of Recent Immigrants, 2001–06
• Table 6. Remittances and Immigrant Categories
• Table 7. Summary of STRs Received by FINTRAC
• Table 8. Canada: On-site Visits to MSBs by FINTRAC
• Table 9. Summary of AML/CFT and Other Requirements for RSPs in Canada
• Table 10. Haiti: Legal Permanent Resident Flow to the United States
• Table 11. Canada: Permanent Resident Applications from Haiti
• Table 12. Canada-Haiti: Bilateral Remittance Flow Size Estimates
• Table 13. Amounts Transferred to Haiti, 2004
• Table 14. Canada-Haiti: Main MTOs Fee Structure, March 2008
• Table 15. Summary of AML/CFT and Other Requirements for Maisons de Transfert in Haiti
• Table 16. Selected Ethnic Groups in Canada, 2006
• Table 17. Percentage of Population Employed, By Gender and Age, 2001
• Table 18. Average Income Level of Jamaican and Canadian Population, By Age, 2000
• Table 19. Education, Employment and Income Statistics, Jamaicans vs. Overall Canadian Population, 2001
• Table 20. Households Receiving Remittances, By Region, 2001–06 (percent)
• Table 21. Households Receiving Remittances, By Quintile, 2001–06 (percent)
• Table 22. Per Capita Remittances by Quintile, 2006 (in jamaican Dollar with US$ equivalent in parenthesis)
• Table 23. Remittances as a Share of Adult Equivalent Expenditure, By Quintile, 2006
• Table 24. Canada-Jamaica: Main MTOs Fee Structure, July 2008
• Table 25. Summary of AML/CFT and Other Requirements for Remittance Companies in Jamaica
• Table B1. Canada: Composition of Population Growth, 1901–2006
• Table E1. Summary of Survey Results: Jamaican Returnees and Remittance Recipients
• Figure 1. Regional Comparison: Net Migration Rate, 1970–2015
• Figure 2. Caribbean: National Net Migration, 2005
• Figure 3. Haiti and Jamaica: Net Migration Rate per 1000 people, 1970–2010
• Figure 4. GNI Per Capita, By Region, 1980–2006 (current in international PPP)
• Figure 5. Per Capita GDP Growth Rates, By Region, 1980–2006 (10yr moving average)
• Figure 6. Net Migration Rate and Per Capita GDP, 2000
• Figure 7. Regional Comparison: Breakdown of Global Inward Remittances, 2007
• Figure 8. Caribbean: Remittance inflow, 1991–2005
• Figure 9. Regional Comparison: Remittances as a Percent of GDP, 1991–2006
• Figure 10. Caribbean (Selected Economies): Remittance Inflows, 2006
• Figure 11. Per Capita GNI and Remittances (2006)
• Figure 12. Haiti and Jamaica: Official Development Assistance, FDI, and Remittances(as a percent of GDP)
• Figure 13. Caribbean: Official Development Aid, FDI, and Remittances, 1980–2005
• Figure 14. Canada: Composition of Permanent Immigration, 1980–2006
• Figure 15. Canada: Permanent Migration and GDP Growth
• Figure 16. Canada: Composition of Population, 1911–2006
• Figure 17. Region of Origin of Recent Immigrants to Canada, 1971–2006
• Figure 18. Caribbean-born Immigrants in Canada
• Figure 19. Canada: Percent of Recent Immigrants Remitting
• Figure 20. Percentage of Respondents who Remitted, By Selected Countries of Birth
• Figure 21. Canada: Average Annual Amount Remitted by Recent Migrants
• Figure 22. Average Annual Amount Sent by Respondents who Remitted,By Selected Countries of Birth
• Figure 23. Canada: Breakdown of Senders, By Amount Sent Annually (percent)
• Figure 24. Bilateral Remittance Estimates using Migrant Stocks, Host CountryIncomes, and Origin Country Incomes
• Figure 25. Canada: Admitted Permanent Immigrants from Haiti, 1966–2006
• Figure 26. Haiti: Permanent Resident Flow to the United States and Canada,1960–2005
• Figure 27. Canada: Permanent Residents from Haiti, By Category, 1980–2006
• Figure 28. Canada: Permanent Resident Inflow from Haiti, 1980–2006 (share of total)
• Figure 29. Canada: Temporary Workers and Permanent Economic Visa Applicationsfrom Haitian Nationals, 2000–06
• Figure 30. Canada: Composition of the Haitian community, 2006
• Figure 31. Breakdown of Haitian Population in Canada, By Main Provinces, 2006
• Figure 32. Canada: Composition of the Haitian Diaspora, By Period of Entry
• Figure 33. Canada: Composition of the Haitian Diaspora, By Age Group, 2006
• Figure 34. Canada: Composition of the Haitian Population, By Education Profile (highest degree attained)
• Figure 35. Haitian Community: Selected economic indicators comparison
• Figure 36. Canada: Permanent Residents from Haiti by Occupation, 1980–2006
• Figure 37. Haiti: Remittance Flows
• Figure 38. Haiti: Market Shares of Maisons de Transfert October 2006–July 2007
• Figure 39. Canada: Admitted Permanent Residents from Jamaica, 1966–2006
• Figure 40. Canada: Composition of the Jamaican Diaspora By Period of Entry
• Figure 41. Canada: Permanent Resident Inflow from Jamaica, 1980–2006 (share of total inflow)
• Figure 42. Canada: Permanent Resident Inflow from Jamaica, By Category, 1980–2006
• Figure 43. Temporary Visas Issued, By Category, 2000–07
• Figure 44. Visa Applications and Acceptance Rate Comparison, Jamaica
• Figure 45. Canada: Composition of the Jamaican Community, 2006
• Figure 46. Breakdown of the Jamaican Population in Canada, By Province, 2006
• Figure 47. Canada: Composition of Jamaican Population, By Age Group, 2006
• Figure 48. Composition of the Jamaican Population, By Education Profile, 2006
• Figure 49. Percentage of Jamaicans Employed in Canada Relativeto Overall Population
• Figure 50. Canada—Permanent Residents from Jamaica by Stated Occupation
• Figure 51. Per Capita Income Levels of Jamaicans and the Overall Canadian Population
• Figure 52. Jamaica: Breakdown of Remittance Inflows, By Country of Origin, 2007
• Figure 53. Jamaica: Breakdown of Formal Remittance Inflows, By Channel Type, 1994–2007
• Figure 54. Jamaica: Breakdown of Formal Remittance Inflows, By Channel Type, 2007
• Figure 55. Remittance Company Typically Used by Jamaicans
• Figure 56. Number of Locations per MTO in Jamaica, 2007
• Figure 57. Share of Locations per MTO, By Parish, 2007
• Box 1. Focus: Haiti and Jamaica
• Box 2. Immigration to Quebec
• Box 3. Money Laundering Threat to RSPs for Funds Going to/from the Caribbean
• Box 4. Regulating RSPs at the Provincial Level
• Box 5. Role of the Exchange Rate in Overall Remittance Transfer Costs
• Box 6. Drug Trafficking in Haiti
• Box 7: Canadian Seasonal Agricultural Workers Program (CSAWP)
• Box 8: Addressing Unemployment among Jamaicans at Home and Abroad: The HEART Trust/ National Training Agency (NTA) of Jamaica
• Box 9: Obtaining a License
• Box 10: Excerpts of the General Principles for International Remittance Services
• Box 11. The Creation of Migration and Remittances “Working Groups”
• Box 12. Relationship between Transparency and Reduction in Remittance Transfer Costs: Case of Mexico
• Box 13. Indonesia: Official Policies and Programs to Regulate Indonesian Worker Migration
• Box 14. Canadian Programs to Implement Immigrants into the Labor Market
• Box B1. Race and Immigration Policy
• Box B2. Setting the Course: The Mackenzie King Statement (1947)