48459 WORLD BANK WORKING PAPER NO. 163 The Canada-Caribbean Public Disclosure Authorized Remittance Corridor Fostering Formal Remittances to Haiti and Jamaica through Effective Regulation Emiko Todoroki Matteo Vaccani Wameek Noor Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK WP163_FM.qxd:WP163_FM 4/3/09 4:16 PM Page i WORLD BANK WORKING PAPER NO. 163 The Canada-Caribbean Remittance Corridor Fostering Formal Remittances to Haiti and Jamaica through Effective Regulation Emiko Todoroki Matteo Vaccani Wameek Noor THE WORLD BANK Washington, D.C. WP163_FM.qxd:WP163_FM 4/3/09 4:16 PM Page ii Copyright © 2009 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, Fax: 202-522-2422, email: [email protected]. ISBN-13: 978-0-8213-7919-6 eISBN: 978-0-8213-7923-3 ISSN: 1726-5878 DOI: 10.1596/978-0-8213-7919-6 Library of Congress Cataloging-in-Publication Data The Canada-Caribbean remittance corridor : fostering formal remittances to Haiti and Jamaica through effective regulation. p. cm. ISBN 978-0-8213-7919-6 -- ISBN 978-0-8213-7923-3 1. Migrant remittances--Canada. 2. Migrant remittances--Haiti. 3. Migrant remittances-- Jamaica. 4. Alien labor, Haitian--Canada. 5. Alien labor, Jamaican--Canada. 6. Alien labor-- Legal status, laws, etc.--Canada. I. World Bank. HC120.F55C363 2009 332'.042--dc22 2008056022 WP163_FM.qxd:WP163_FM 4/3/09 4:16 PM Page iii Contents Foreword . ix Acknowledgments . xi Abbreviations and Acronyms. xiii Description of Terms and Key Business Models. xv Executive Summary . xvii Key Statistics . xxv Introduction . 1 Bilateral Remittance Corridor Analysis . 1 About the Canada-Caribbean Remittance Corridor . 2 Methodology and Outline of the Report. 3 1. Migration and Remittance Patterns in the Caribbean. 5 Migration and the Caribbean . 6 The Caribbean as a Remittance Recipient . 11 Main Points . 19 2. Canada as a Country of Remitters . 21 Migrating to Canada . 21 Remitting from Canada. 29 Legal and Regulatory Framework for Remittance Service Providers in Canada . 37 Main Points . 48 3. The Canada-Haiti Remittance Corridor . 49 Haitians in Canada . 49 Remittance Transfers . 61 Legal and Regulatory Framework Applicable to Maisons de Transfert in Haiti . 70 Main Points . 78 4. The Canada-Jamaica Remittance Corridor. 79 Jamaicans in Canada . 79 Remittance Transfers . 94 Legal and Regulatory Framework Applicable to Remittance Companies and Agents in Jamaica . 106 Main Points . 116 iii WP163_FM.qxd:WP163_FM 4/3/09 4:16 PM Page iv iv Contents 5. Findings and Policy Considerations . 117 Haiti: Policy Recommendations . 120 Jamaica: Policy Recommendations . 126 Canada: Policy Recommendations. 130 Concluding Remarks. 133 Appendixes A. The Caribbean: Main Historical Features and Migrant Destinations. 137 B. Historical Features of Early 20th Century Migration to Canada (1901–61) . 141 C. Focus Group Discussion: Haiti. 145 D. Focus Group Discussion: Haitian Diaspora . 149 E. Focus Group Discussion: Jamaica. 153 Bibliography . 159 LIST OF TABLES 1. World Bank’s Bilateral Remittance Corridor Analyses, 2008 . 2 2. Percentage of Total Expatriates, Highly-skilled Aged 15+. 12 3. Point System Evolution, 1967–2003 . 22 4. Canada: Immigration as Percent of Population, 1967–2006. 24 5. Top 10 Country of Origin of Recent Immigrants, 2001–06 . 28 6. Remittances and Immigrant Categories . 33 7: Summary of STRs Received by FINTRAC . 43 8. Canada: On-site Visits to MSBs by FINTRAC . 45 9. Summary of AML/CFT and Other Requirements for RSPs in Canada . 46 10. Haiti: Legal Permanent Resident Flow to the United States . 51 11. Canada: Permanent Resident Applications from Haiti . 54 12. Canada-Haiti: Bilateral Remittance Flow Size Estimates . 63 13. Amounts Transferred to Haiti, 2004 . 64 14. Canada-Haiti: Main MTOs Fee Structure, March 2008 . 66 15. Summary of AML/CFT and Other Requirements for Maisons de Transfert in Haiti . 77 16. Selected Ethnic Groups in Canada, 2006 . 87 17. Percentage of Population Employed, By Gender and Age, 2001. 90 18. Average Income Level of Jamaican and Canadian Population, By Age, 2000 . 93 19. Education, Employment and Income Statistics, Jamaicans vs. Overall Canadian Population, 2001 . 94 20. Households Receiving Remittances, By Region, 2001–06 . 96 WP163_FM.qxd:WP163_FM 4/3/09 4:16 PM Page v Contents v 21. Households Receiving Remittances, By Quintile, 2001–06. 96 22. Per Capita Remittances by Quintile, 2006 . 97 23. Remittances as a Share of Adult Equivalent Expenditure, By Quintile, 2006 . 97 24. Canada-Jamaica: Main MTOs Fee Structure, July 2008 . 100 25. Summary of AML/CFT and Other Requirements for Remittance Companies in Jamaica . 114 B1. Canada: Composition of Population Growth, 1901–2006 . 142 E1. Summary of Survey Results: Jamaican Returnees and Remittance Recipients . 156 LIST OF FIGURES 1. Regional Comparison: Net Migration Rate, 1970–2015. 6 2. Caribbean: National Net Migration, 2005 . 7 3. Haiti and Jamaica: Net Migration Rate per 1000 people, 1970–2010 . 8 4. GNI Per Capita, By Region, 1980–2006 . 9 5. Per Capita GDP Growth Rates, By Region, 1980–2006 . 9 6. Net Migration Rate and Per Capita GDP, 2000 . 10 7. Regional Comparison: Breakdown of Global Inward Remittances, 2007 . 13 8. Caribbean: Remittance inflow, 1991–2005. ..