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Law; Money; Banking; International Remittance Transfers; IRT


In recent years mobile devices have been increasingly used for the transmission of data, including the initiation and receipt of payments. Payments executed include "international remittance transfers" ("IRTs"), which are cross-border, person-to-person payments of a relatively low value. An IRT is likely to involve a "settlement chain" consisting of a series of separate payments. This paper examines the suitability of the UNCITRAL Model Law on International Credit Transfers 1992 ("MLICT") to cover IRTs initiated and/or completed by mobile devices. The MLICT is a comprehensive statute covering rights and obligations incurred in the course of an international credit transfer. The paper concludes with the observation that low-value credit transfers were envisaged as covered by the MLICT and yet were not central in the work leading to the model law. Overall, the ML/CT is appropriate to cover IRTs. Only a few adjustments to the model law should be considered. Consumer-protection aspects, primarily regarding disclosures, should be added; consumers' liability for unauthorized transfers should be rethought and redrafted.