Remitansi

Remitansi is the transfer of funds from one party to another, typically organized as a payment instruction to a bank or remittance provider to move money from the payer to the recipient. It encompasses both domestic and international transfers and can be conducted in person with cash, by check, or digitally through banks or money transfer services. The term derives from the English remittance and has been adopted into Indonesian and Malay.

Remittance can take several forms, including bank remittance, post office remittance, and services from money transfer operators (MTOs) such as Western Union or digital remittance apps. Domestic remittance is commonly used for salary payments or family support, while international remittance involves cross-border transfers often used by migrant workers to send money home.

A remittance instruction typically includes payer information, recipient details, amount and currency, and the purpose of the transfer. The transaction is processed by the sending institution with fees and exchange rates applied. Funds may be delivered as a bank deposit, cash pick-up, or mobile wallet, depending on the service and destination.

Remittances play a significant role in household income and national economies, particularly in lower- and middle-income countries. They are regulated to prevent money laundering and the financing of illicit activity, requiring know-your-customer procedures, transaction monitoring, and reporting for large or suspicious transfers.

Regulatory bodies such as central banks or financial authorities oversee remittance services, and providers must comply with international standards on AML/CFT. Advances in digital platforms have expanded access to remittance services, often reducing cost and time for senders and recipients.