OzForex resolves its banking arrangements

Foreign exchange service provider OzForex issued a statement yesterday, saying it would transfer all of the services currently provided by Westpac in Australia to other banking partners within its existing portfolio of banking partners.

In January Westpac gave OzForex notice that their banking relationship was to be terminated. A few months earlier the bank had notified remittance company customers that it would no longer provide them with banking services.

With the increased regulatory focus on money laundering and terrorism financing over the past couple of years, the regulator Austrac has suspended or cancelled the registration of a number of remittance companies.

Westpac and other banks reviewed their policies and decided that, given the way remitters do business, they could not meet their regulatory obligations.

Westpac's decision in relation to OzForex showed that it was not just remitters that the bank was uncomfortable dealing with.

OzForex said at the time that it had banking relationships with 15 financial institutions around the world, including National Australia Bank and Macquarie Bank.

Yesterday OzForex said it was well advanced with the re-arrangement of its banking relationships in New Zealand.

The company said the transition in the Australian market would have no impact on the speed of delivery for funds to and from customers.