The accurate measurement and compilation of remittance data continue to pose challenges for several reasons.

(i) Remittance transactions through unofficial channels: A significant portion of remittances flows through informal channels, such as cash hand-carried by migrants when they return home. These transactions are difficult to track and often go unrecorded in official statistics. Furthermore, digitalization through Fintech solutions have significantly impacted the remittance industry but are difficult to track. Data on mobile wallets that receive remittances as well as blockchain and cryptocurrencies to facilitate cross-border remittances have yet to be incorporated into countries’ data compilation frameworks.

(ii) Inadequate adherence to the residency concept: With increasing numbers of refugees, including transit migrants (who do not establish permanent residency in their transit countries) as well as the new phenomenon of remote workers with dual residency status, further clarification and practical guidelines are needed to ensure comprehensive coverage.

(iii) Misclassification: Classifications used for remittance statistics are often not in conformity with guidelines outlined in the IMF’s Remittances Guide for Compilers or its Balance of Payments Manual (RCG/BPM6). Some non-remittance transactions, travel revenues and expenditures, or inward direct investment flows are often misclassified as inward remittances. And small trade payments, gifts to charitable organizations, or bank deposits are also sometimes misclassified as personal remittances, further complicating data accuracy.

(iv) Incompatibility of source data: There are several key limitations in the source data, including its lack of comprehensiveness, susceptibility to country-specific conditions, and incompleteness for proper transaction classification according to defined criteria in terms of scope, classifications, valuation, and required timing of recording.

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Rætta metadátur: 17.3.2