SYDNEY: Westpac Banking Corp, Australia's No.2 lender by market value, will become the last of the country's big banks to retreat from the $425 billion global remittance business after agreeing to close remitters' accounts after March 31.
More than 20 remittance firms had sued Westpac in November to prevent it from quitting the business, arguing this would cripple them. Banks says rising regulatory compliance costs make it difficult to support remittance firms, which help foreign workers from developing countries send money home.
"We asked Westpac to provide a reasonable time before they close the accounts. Now Westpac has agreed for March 31.
At that time all accounts will close," said Richard Mitry, a lawyer acting on behalf of remitters in the case.
Mitry said he does not expect an appeal to contest the settlement, which is subject to court approval on Wednesday.
Westpac said it will allow money transfer operators time to make alternative banking arrangements before closing down these services. "In the meantime, we are continuing to work closely with the government, regulators and our customers to see what longer-term solutions may be possible to support and help make such payments in the future," it added.
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