Money Transfer Study. Q2 Job Title. Answered: 20 Skipped: 2. # Responses Date. 1 Audit Supervisor 12/21/2016 2:08 PM

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2 Q2 Job Title Answered: 20 Skipped: 2 # Responses Date 1 Audit Supervisor 12/21/2016 2:08 PM 2 Compliance Operations Manager 12/21/2016 1:23 PM 3 President 12/20/2016 8:07 PM 4 Owner 12/20/2016 3:19 PM 5 compliance officer 12/20/2016 1:28 PM 6 MANAGER 12/15/2016 5:47 PM 7 Compliance Officer 12/13/2016 4:37 PM 8 COMPLIANCE OFFICER 12/13/ :56 AM 9 SVP, COO & CCO 12/12/2016 5:16 PM 10 Compliance Officer 12/12/2016 2:12 PM 11 CEO 12/12/2016 2:03 PM 12 Acting Chief Compliance Officer 12/9/ :03 AM 13 CEO 12/9/2016 4:09 AM 14 CEO 12/7/2016 3:07 PM 15 Vice President 12/7/ :12 AM 16 president 12/6/2016 3:33 PM 17 Director 12/5/2016 8:05 PM 18 Chief Executive Officer 12/5/2016 3:09 PM 19 General Manager 12/2/2016 4:37 PM 20 President & CEO 12/2/2016 4:11 PM 2 / 24

3 Q3 What type of transmitter/msb are you? Answered: 22 Skipped: 0 Traditional Licensee/Age... Mobile/Top Up/Telephone... Credit Counseling/D... Payday Lender Third-Party Payment... Virtual Currency Internet-Based Stored Value Cards Check Casher Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Traditional Licensee/Agent Model Mobile/Top Up/Telephone Cards Credit Counseling/Debt Consolidation Payday Lender Third-Party Payment Processor Virtual Currency Internet-Based Stored Value Cards Check Casher Other (please specify) Responses 81.82% % % % % % % % % % 2 Total 22 3 / 24

4 # Other (please specify) Date 1 Audit consultant specializing in MSB and Banks serving MSB 12/21/2016 2:08 PM 2 Mobile Money remitter 12/9/2016 4:09 AM 4 / 24

5 Q4 How many corridors do you currently provide money transfer services to? (Check all that apply) Answered: 22 Skipped: 0 Latin America/Cari... South Asia Asia Eastern Europe Africa Middle East Domestic Only Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Latin America/Caribbean South Asia Asia Eastern Europe Africa Middle East Domestic Only Other Responses 63.64% % % % % % % % 4 Total Respondents: 22 # Other (please specify) Date 1 N/A 12/21/2016 2:09 PM 2 Central Europe 12/9/ :03 AM 3 domestic 12/6/2016 3:33 PM 5 / 24

6 Q5 Have you maintained, raised, or lowered your total price? Answered: 18 Skipped: 4 Raised Prices Lowered Prices Neither Raised or Lowered In the past six months? In the past year? Total Weighted Average Raised Prices Lowered Prices Neither Raised or Lowered Prices 0.00% % % % % % / 24

7 Q6 Is there any specific reason why you have chosen to raise/lower prices? (i.e. competitive forces, cost of doing business, etc.) Answered: 16 Skipped: 6 # Responses Date 1 inflation in vzla 12/20/2016 8:08 PM 2 Competitive Forces 12/20/2016 3:21 PM 3 competition with big remitters companies, competitive forces 12/20/2016 1:31 PM 4 NA 12/15/2016 5:48 PM 5 competitive forces 12/13/2016 4:38 PM 6 Because of competition the company cannot increase its prices even though compliance costs are on the rise. 12/12/2016 5:20 PM 7 it is the same 12/12/2016 2:13 PM 8 We put our clients first and strive to continuously provide them with the lowest prices and would prefer to absorb costs rather then raise prices. 12/12/2016 2:04 PM 9 na 12/9/ :04 AM 10 n/a 12/9/2016 4:10 AM 11 Holding the line in a very competitive marketplace 12/7/2016 3:09 PM 12 competitive reasons 12/6/2016 3:34 PM 13 competitive forces 12/5/2016 8:07 PM 14 Competitive forces 12/5/2016 3:09 PM 15 competitive forces 12/2/2016 4:38 PM 16 Competitive forces, cost of doing business especially in increase in Banking fees and compliance costs 12/2/2016 4:12 PM 7 / 24

8 Q7 Who are you witnessing the greatest price competition from? Answered: 18 Skipped: 4 National Providers Regional Providers Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices National Providers Regional Providers Other (please specify) Responses 61.11% % % 2 Total 18 # Other (please specify) Date 1 illegal competition. 12/20/2016 8:08 PM 2 International multinational operators 12/9/2016 4:10 AM 8 / 24

9 Q8 Have you witnessed an increase or decrease in transactions? Answered: 19 Skipped: 3 Increase Decrease Same 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Increase Decrease Same Responses 15.79% % % 7 Total 19 9 / 24

10 Q9 Is there any particular reason for the increase in transactions? Answered: 3 Skipped: 19 # Responses Date 1 Numerous factors, but primarily focused on profitable growth at well above market growth rates 12/7/2016 3:09 PM 2 Africa and Dominican republic 12/6/2016 3:35 PM 3 Enhanced payer offering More competitive pricing Better customer service 12/5/2016 3:10 PM 10 / 24

11 Q10 Any particular reason for the decline in transactions? Answered: 7 Skipped: 15 # Responses Date 1 Increase in companies doing business in Alaska 12/20/2016 3:22 PM 2 competitive reason with big companies 12/20/2016 1:31 PM 3 Inability to keep the exchange rate competitive. 12/13/ :58 AM 4 More market competition 12/12/2016 2:14 PM 5 rise of BitCoin 12/12/2016 2:05 PM 6 Demographic change- majority of our transfers are to Poland, currently there are less immigrants from Poland ever since Poland joining EU. 12/9/ :07 AM 7 de-banking 12/5/2016 8:08 PM 11 / 24

12 Q11 What is the biggest issue facing your business today? (Check All That Apply) Answered: 19 Skipped: 3 Getting bank accounts whe... Getting licensed Regulatory/Gove rnment Cost of compliance Cost of IT/automation Competition from new... Competition from large... Competition from small -... Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Getting bank accounts when and where you need them Getting licensed Regulatory/Government Cost of compliance Cost of IT/automation Competition from new technologies Competition from large national competitors Competition from small - mid sized competitors Other (please specify) Responses 94.74% % % % % % % % % 4 Total Respondents: 19 # Other (please specify) Date 1 Banks don't want to deal with money remitters anymore specially small business 12/20/2016 1:32 PM 12 / 24

13 2 competition form multinationals 12/9/2016 4:11 AM 3 Uncertain incoming president and his anti immigrant proposals 12/7/2016 3:10 PM 4 large national competitors have access to national bank like BofA, US Bank, Citi, while the big banks denying services to small-medium size companies. 12/2/2016 4:14 PM 13 / 24

14 Q12 Have you increased your compliance spending? Answered: 19 Skipped: 3 Increased spending Decreased spending Same 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Increased spending Decreased spending Same Responses 63.16% % % 6 Total / 24

15 Q13 Any particular reason for increasing compliance spend? Answered: 10 Skipped: 12 # Responses Date 1 FOR BANKING RELATIONSHIP 12/15/2016 5:50 PM 2 Hiring consultant 12/13/2016 4:39 PM 3 Meeting regulatory requirements and improving of CIP for better customer service and experience. 12/12/2016 5:24 PM 4 required in order to stay compliant 12/12/2016 2:05 PM 5 Additional training is required; salary increases in the order to keep employees in. 12/9/ :08 AM 6 Legislative obligations, greater transaction scrutiny 12/9/2016 4:11 AM 7 Required from new and expanded regulations, both Federal (CFPB, FINCen) as well as state (NY, CO, WA, and several other new amendments) 12/7/2016 3:12 PM 8 to try to convince bank for re-banking 12/5/2016 8:09 PM 9 Higher volumes = More people 12/5/2016 3:11 PM 10 State regulators, CFPB, Federal, Banks all require remittance company to do more of compliance such as KYC, EDD, monitoring, agents training. 12/2/2016 4:16 PM 15 / 24

16 Q14 Any particular reason for decreasing compliance spend? Answered: 1 Skipped: 21 # Responses Date 1 Senior Management decisions 12/12/2016 2:15 PM 16 / 24

17 Q15 What percentage did you increase your compliance spending? Answered: 10 Skipped: 12 # Responses Date /15/2016 5:50 PM 2 20% 12/13/2016 4:39 PM 3 20% 12/12/2016 5:24 PM 4 60% 12/12/2016 2:05 PM 5 100% 12/9/2016 4:11 AM 6 30% 12/7/2016 3:12 PM 7 5% 12/6/2016 3:36 PM 8 200% 12/5/2016 8:10 PM 9 20% 12/5/2016 3:11 PM % 12/2/2016 4:16 PM 17 / 24

18 Q16 How would you characterize the environment for obtaining banking services? Answered: 18 Skipped: 4 Better Worse Same 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Better Worse Same Responses 0.00% % % 4 Total / 24

19 Q17 What has fueled the change in access to banking services? Answered: 10 Skipped: 12 # Responses Date 1 Banks see us as competition.they are trying to take over money remittances 12/20/2016 8:10 PM 2 My money remitter account was account after being 14 years with same bank, I just opened another one and they just call me after 3 months letting me know that they are going to close my account again 12/20/2016 1:34 PM 3 REGULATORS 12/15/2016 5:51 PM 4 Misperception and Misunderstanding of our industry's operation and processes. 12/12/2016 5:30 PM 5 fear of BitCoin continued derisking lack of comprehension of our business model 12/12/2016 2:06 PM 6 ongoing bank de-risking 12/9/2016 4:12 AM 7 Ongoing 15 year misguided Government efforts to force banks out of certain deemed "high risk" businesses, (Bank Discontinuance, Choke-Point & now De-Risking); also affecting International Correspondents broadly all over LATAM. Its an existential crisis for the industry. 12/7/2016 3:17 PM 8 fear of money laundering being written up in the wall street journal and pressure from the bank regulators 12/6/2016 3:37 PM 9 Unclear guidance from bank regulators to bankers 12/6/ :47 AM 10 All banks citing msb as high risks no bank wants to open these business account. Regulators from OCC keeps telling banks that you are too small, you are not ready or equipped to serve msb accounts while the directors at OCC and FinCEN were telling otherwise in their speeches. Nothing positive is happening in the banking level. We are seeing more and more banks withdraw or cut ties with servicing msb account. 12/2/2016 4:19 PM 19 / 24

20 Q18 What type of depository institution have you had the most/least luck? Answered: 13 Skipped: 9 # Responses Date 1 banks 12/20/2016 8:10 PM 2 Alaska banks most luck, National banks least luck 12/20/2016 3:26 PM 3 Unity Bank most PNC bank least 12/20/2016 1:34 PM 4 NONE 12/15/2016 5:52 PM 5 most luck with banks that deal with money transmitters 12/13/ :59 AM 6 Least luck with Large Nationally Chartered Banks. 12/12/2016 5:32 PM 7 National wide banks 12/12/2016 2:16 PM 8 credit union 12/12/2016 2:06 PM 9 banks and mutuals 12/9/2016 4:12 AM 10 All random, some large and some small, but in total less than 25 institutions out of the 6,000 banks will accept any sort of MSB. Without banks with branches its virtually impossible to expand an agent network and the underserved Hispanic customers will remain well outside any financial system and money will move underground, increasing AML risks and against law enforcement efforts. 12/7/2016 3:22 PM 11 all banks most luck with credit unions 12/6/2016 3:37 PM 12 Less luck with larger, well established depository institutions, more luck with smaller, regional players. 12/6/ :47 AM 13 none 12/5/2016 8:10 PM 20 / 24

21 Q19 What consequences have you witnessed as a result of the banking problem? Answered: 17 Skipped: 5 Failure to expand Withdrawal from some... Danger to sell or go out of... Tougher competition... Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Failure to expand Withdrawal from some locations Danger to sell or go out of business due to the denial of banking services Tougher competition from larger players Other (please specify) Responses 76.47% % % % % 4 Total Respondents: 17 # Other (please specify) Date 1 Increased cost of bank services 12/20/2016 3:28 PM 2 Much higher banking costs since there is virtually no competition 12/7/2016 3:22 PM 3 increased costs for stores and smart sages and armored cars 12/6/2016 3:38 PM 4 Only the national or mega company has access to bank and that is NOT fair to the industry. 12/2/2016 4:20 PM 21 / 24

22 Q20 How would you rate the likelihood of a tax on remittances to Mexico as a means to finance the border wall? Answered: 16 Skipped: 6 Highly Likely Likely Somewhat Likely Not Likely No Chance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Answer Choices Highly Likely Likely Somewhat Likely Not Likely No Chance Responses 6.25% % % % % 3 Total 16 # Comment Date 1 Its indeterminable at this point, but is a flawed proposal in many levels and will drive people underground, SAD! 12/7/2016 3:23 PM 22 / 24

23 Q21 What impact would a tax on Mexican remittances have on your business? Answered: 13 Skipped: 9 # Responses Date 1 none 12/20/2016 8:15 PM 2 We would stop doing remittance to Mexico due to cost of compliance and extra paper work. 12/20/2016 3:30 PM 3 None 12/20/2016 1:35 PM 4 DONT KNOW 12/15/2016 5:52 PM 5 None 12/13/ :00 AM 6 None. 12/12/2016 5:34 PM 7 decrease on transactions 12/12/2016 2:17 PM 8 our business would probably increase as we are not in the USA 12/12/2016 2:06 PM 9 none - we don't send to Mexico 12/9/2016 4:13 AM 10 Taxes on Remittances have been tried unsuccessfully before and unfairly punishes the working poor that are sending money home; also will drive people underground 12/7/2016 3:25 PM 11 dont know depends on how much it is 12/6/2016 3:38 PM 12 Negative impact on volumes, as these remittances find their way to their destination via informal non-traceable channels. 12/6/ :48 AM 13 Bad impact, workers would need to pay more for the same service. 12/2/2016 4:21 PM 23 / 24