Panama sees huge growth in foreign remittances

La Prensa writes that the financial services commission have just released the 2006 money remittance statistics. These cover the licensed money remittance industry with large players such as Wester Union and lots of smaller regional agencies as well. It does not include international bank wires though nor the extra legal money remitters.

Panama introduced money remittance licenses in I think 2003 (supposedly to fight money laundering). While a bit of a pain for the electronic payment startup I was in at the time in Panama City it was a bit of a godsend as we were scared that regulators might decide we were a bank.

I believe there are still several extralegal remitters. The Colombians, Arabs, Indian and Chinese communities in Panama have traditionally had these so-called Hawala systems, which I doubt just went away because a regulator said so.

Total remittances were $120.9 million, which was a growth of 17.6% over 2005. 43% of this money went to Colombia. The Colombians are no doubt the largest immigrant group in Panama. In recent years they have arrived in droves and just stayed. Most of these are illegal immigrants, but probably are very good for the country as many of them start businesses.

For me international remittance growth is a sign that globalisation is working and helping ordinary folks. Remittances are not sent by huge evil companies, but that vital part of the global economy the people them selves.