Workers warned against illegal remittance business

Chinese workers employed in the garment industry have been alerted by their employers on the alleged presence of scrupulous foreign remittance shops which may put at risk the money they send home, according to officials.

Richard Pierce, executive director of the Saipan Garment Manufacturers Association, said the group had discussed the problem in a recent meeting and had agreed to call the attention of the members’ employees.

“Although it’s a government responsibility to check on the businesses whether they have the proper license, SGMA has informed its members about the issue to get the word out,” he said in an interview.

Rep. David M. Apatang earlier had asked Mr. Pierce to look into the situation as his office had been receiving reports that some garment workers are transacting remittance business with firms without government permit.

“For the protection of all garment workers that remit funds, I suggest that your members take necessary action to ensure that their workers use only properly licensed persons or business for their remittance entities,” the representative wrote in a letter to Mr. Pierce.

Mr. Apatang also urged SGMA to report to authorities any illegal remittance activity. He said he would draft legislation seeking tighter penalty and making it a felony against finance companies found without license.

In a separate letter to Mr. Pierce, Commerce Sec. Frankie B. Villanueva identified two legitimate businesses that can service those who want to remit money to China, including the Universal Group Development, Inc. on Middle Road in Chalan Laulau and Far East Finance in Garapan.

Noting mounting complaints on the proliferation of unlicensed remittance shops, Mr. Villanueva said that by patronizing these firms, “garment workers stand the risk of not being able to see their hard-earned dollars again should these individuals or companies fail to perform their obligations.”

While he expressed surprise that only two shops are servicing thousands of Chinese workers on the island for money remittance, Mr. Pierce called on the government to strictly monitor other similar businesses that may also be violating local tax laws.

To discourage proliferation of illegal business establishments in the CNMI, Mr. Apatang has proposed a drastic measure that will seek penalty of $50,000 and imprisonment of up to five years for business owners found guilty of the felony offense.

The proposal would enforce regulations requiring government license on any business venture in the CNMI, noting that such requirement has oftentimes been violated due to absence of penalty provisions. (Benhur C. Saladores)