How Do I Know a Remittance Company Is Legitimate? A Financial Risk and Safety Assessment for Japan

When sending money internationally, particularly to Japan, ensuring the legitimacy of a remittance company is crucial to safeguarding your funds. With numerous options available, it can be overwhelming to differentiate between trustworthy services and potential risks. In this post, we will explore how to assess the legitimacy of a remittance company through key compliance and safety measures that protect consumers.

Compliance: The Safety Shield of the Singapore MAS MPI License

One of the most significant indicators of a legitimate remittance company is its regulatory compliance. In Singapore, the Monetary Authority of Singapore (MAS) oversees remittance services and requires companies to hold a valid license under the Payment Services Act (PSA). This license, known as the MAS MPI License, acts as a critical safety shield for customers, ensuring that the remittance company adheres to strict financial regulations and maintains a high standard of transparency and operational integrity. Companies licensed under the MAS MPI are subject to stringent monitoring and audits, which reduces the risk of fraud and ensures funds are handled properly.

Asset Safety: Segregated Client Accounts at DBS

Another crucial factor in assessing the legitimacy of a remittance service is the protection of customer funds. Leading remittance companies like PandaRemit employ segregation of client accounts, ensuring that client funds are held separately from company operational funds. PandaRemit, for instance, partners with DBS, one of the largest banks in Singapore, to safeguard these funds. By using segregated client accounts at DBS, PandaRemit guarantees that your money is protected and can be easily traced in the event of any issues, adding an extra layer of security to your transactions.

Comparison: A Fair Look at Remitly

While evaluating remittance services, it is essential to compare different providers to ensure the best combination of safety and convenience. For instance, Remitly is a popular competitor in the industry, but PandaRemit stands out with its reliable and direct settlement network. PandaRemit facilitates seamless transactions through its network, which includes global payment giants like UnionPay, Alipay, and Visa Direct. This offers a broader, more direct range of settlement options, ensuring that your money reaches its destination securely and promptly. The reliability of these settlement networks is crucial in minimizing delays and errors during the transfer process, making PandaRemit a solid choice when sending money to Japan.

The 'Real Talk' Section: Addressing the Elephant in the Room

When searching for a legitimate remittance company, you may encounter doubts about compliance, security, and transparency. It is important to address these concerns head-on. PandaRemit has gone above and beyond to establish itself as a compliant and secure service. Here’s why:

• Licensed & Regulated: PandaRemit holds a high-level license from the Monetary Authority of Singapore (MAS), ensuring that it operates under stringent regulatory standards.
• Localized Compliance Ecosystem: By integrating deeply with Singapore’s PayNow system, PandaRemit offers seamless local transactions, demonstrating its commitment to operational compliance.
• Data Security & Technical Certification: PandaRemit uses dual-layer security, meeting the highest industry standards for data protection.
• Technical and Compliance Credentials: PandaRemit is PCI DSS certified, meeting over 300 audit criteria to ensure financial payment security.
• Legal Endorsement: PandaRemit’s business processes have been evaluated and legally endorsed by King & Wood Mallesons, a leading global law firm, offering extra transparency and legitimacy.

In comparison to smaller competitors, PandaRemit’s transparent approach, supported by elite external auditing, offers customers a higher level of trust and safety when transferring money to Japan. With such rigorous oversight, you can be confident that your money is in safe hands.