The arrogance of Western Union

E. Ablorh-Odjidja

May 14, 2014

Or shall we say the arrogance of some foreign institutions and how this shapes policies for their African operations.

It used to be that to collect money from Western Union (WU) at an agent bank, your correct name, in whatever format, surname first or last, on an official government identification document, the correct MTCN number and password were all you needed - until last week.

I went to an Ecobank branch in Accra, on May 09, 2014, at 1:35 PM, to collect a Western Union remittance and met a WU policy that made the transaction unusually difficult.

I had a Ghana government issued identification document, a driver's license. It was rejected. They wanted my American passport.

Oddly, the Ghanaian driver's license was issued on the basis of the information provided on my American passport and driver's license. All particulars on both Ghanaian and American documents matched. My American driver's license was also refused, so it wouldn't be a matter of residency. 

What then was the point for the rejection; cause a delay by declaring that readily available identification documents were not useful?

The bank said a WU policy required a government issued identification document but it had to be my American passport. And that the full name on the Ghanaian driver's license that I presented did not show the same order as the name to receive the money. My American passport was the preferred document, but this document had the same name, in the same order, as all the documents I had so far presented.

I thought this was a matter that a little discretion could settle since I didn't have my passport on me at the time. The inconvenience of going back home for my passport when I had a Ghana government issued identification document on me was too much. Beside, I was an Ecobank customer. So I asked to see the manager.

I met the same intransigence at the meeting with the manager. Western Union policy was so strong that my Ghanaian government issued identification document was of no consequence, if I were to believe the manager.

I sensed a planned delay in the transaction so I went home for my passport.

On return, I first brandished the Ghanaian issued dual citizen identification green card that accompanied my passport, hoping it would induce some discretion for the transaction to move forward. The green card hard allowed me entry into Ghana and the particulars on it were genuine and same as those on my American passport.

Still, the green card was refused.  The American passport was the preferred one.

I am not hinting conspiracy at this stage. But it suffices to say now that this WU policy, if legal, is inimical to the maintenance of confidence in the integrity of Ghana's sovereignty. A Ghanaian government issued identification document has been rejected by a bank, licensed to operate in the country by the same government, on the say so of a foreign financial institution's policy!

The disrespect embodied in the formulation and exercise of this WU policy is something the government of Ghana should worry about, if it cared about its reputation. This policy becomes even more insulting; a fiat when you consider the way it was exercised without discretion at the Ecobank branch.

Our cedi doesn't sell overseas. Must our government issued identification document be also turned into a joke in this country?

I collected the money on the strength of the American passport, but my doubt about the transaction lingered: Whom does this policy seek to protect or benefit?

In a recent Africa Progress Report, the former UN Secretary General, Mr. Kofi Annan, pointed an accusatory finger at Western Union and Moneygram. He said both financial institutions were "ripping off the African diaspora" in the amount of billions of dollars per annum by unfair practices.

Western Union is a currency exchange enterprise. In this province there is much to be gained from timing and delaying of payments, the effect of either could favor WU. An overnight investment of your money by WU is one benefit. The constant fall in the value of the cedi with timed delays also adds another level of benefit as payments are made.

And thanks to the demand by the Ghana government for remittances to be paid in the local currency only and then turning blind eye on procedures that cause delays in payments, the benefits for WU will continue at the expense of the receiver.

A day or two's delay in payments could present the opportunity for overnight investment of huge sums received from the diaspora, not to even mention worldwide by the likes of WU, as receivers wait for senders to affect corrections before collections.

The delay may not be intentional. But the effect in benefits and profit for WU will be the same.

Western Union's advice on its web site for money collection reads, "Visit an agent location near you with your government-issued ID. You'll also need to ask the sender for the tracking number (MTCN)."

The above sounds like a reasonable procedure. In my case, I went to the Ecobank branch with two Ghanaian government issued documents and I was turned down on both. Are the words on the WU web site false advertisement?

Some may cite fraud as the reason for this new policy. But fraud alone should not be enough to excuse this blatant overreach, considering all the security measures WU has put in its transactions to avoid the risk of fraud.

First, it demands senders and receivers' name and particulars on government issued identification documents at both ends of the transaction.

Second, it provides a distinct control number (MTCN) for the transaction.

Third, it demands that the sender provide a question and a corresponding answer which only the sender and the recipient would know.

From the above, it can be assumed that a safe transaction can be conducted without a demand for anything extraordinary other than a legit government issued identification document.

Why on earth, after all this should WU put extra burden on a recipient, beyond the requirement provided on its own web site, then proceed to enforce a policy that denigrates the Ghana government to boot?

The charge of "ripping off" the African diaspora by former Secretary General Kofi Annan may be true to the extent that delays in payouts by these institutions could be part of the scheme for the rip off.

Note: Ghanadot has requested an interview with WU in Ghana through the Ecobank branch manager but so far no response. Any clarification or statement from WU about this issue will be promptly published.

E. Ablorh-Odjidja,Publsiher www.ghanadot.com, Washington, DC, May 14, 2014

Permission to publish: Please feel free to publish or reproduce, with credits, unedited. If posted at a website, email a copy of the web page to publisher@ghanadot.com . Or don't publish at all.