Hidden Transfer Fees Bill Passes First Reading

Labour’s hidden transfer fees Bill has passed its first reading, targeting the millions New Zealanders lose each year to unclear international money transfer costs buried in exchange rates and fine print.

Labour MP Arena Williams’ Member’s Bill to increase transparency for international money transfer fees has passed its first reading.

“Kiwis will be aware of how their wallets are hit when they make online purchases or send money overseas, but the costs are often hidden,” Arena Williams said.

“This Bill will ensure Kiwis understand exactly how much something is going to cost before they hit send.

“New Zealanders pay more for international money transfers than people in Australia, the UK, and the USA. Industry data shows Kiwis are currently paying $743 million a year in hidden fees, with expectations that would continue to increase.

“NZ First and ACT have come to the party to make things clearer for consumers, but National continued their inaction on increasing costs,” said Arena Williams.

What the hidden transfer fees Bill actually does

This Bill will amend the Financial Markets Conduct Act 2013 to require full disclosure of all fees, commissions, and exchange rates before a transfer is made; ensure the total cost of a transfer is clearly displayed, including markups; and stop banks and providers from hiding charges in fine print.