## BPM7 Annex 4. Remittances: Annotated Outline

## Source details

**Canonical URL:** [BPM7 Annex 4. Remittances: Annotated Outline](https://www.imf.org/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-4-remittances-annotated-outline.pdf)

## Other formats

- [Markdown version](/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-4-remittances-annotated-outline.pdf.md)
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### Changes from BPM6 and Scope
- Annex is an update to BPM6 Appendix 5 and will be mostly maintained as in BPM6 Appendix 5 with minor updates.
- Adjustments emphasize new transmission channels of remittances due to advances in fintech such as e-money/mobile money (GN F.7 “Impact of Fintech on Macroeconomic Statistics”).
- The term “Remittances” will be subject to the outcome of the work of the Communications Task Team—GN CM.2 “Terminology and Branding of the Economic Accounting Statistical Standards”. (Footnote 2)
- Prepared by Wilson Phiri (BPM editor) and cleared by Carlos Sánchez-Muñoz (the BPM Project Manager). (Footnote 1)

### I. Economic Concept of Remittances and Why They Are Important
- Will discuss the concept of remittances and their significance for the balance of payments.
- Will address how remittances are recorded in the balance of payments framework.

### II. Concepts of Residence, Valuation and Time of Recording
- Will cover residence determination for remittance transactions.
- Will detail valuation methods and principles for time of recording remittance flows.

### III. Standard Components in the Balance of Payments Framework Related to Remittances
- Will present the standard balance of payments components related to remittances.
- Will clarify classification and recording practices under the BPM framework.

### IV. Supplementary Items Needed for Compilation of Remittances
- Will identify supplementary items required by compilers to estimate remittance flows comprehensively.
- Will address data sources and adjustments needed to capture remittance channels, including fintech-related instruments.

### V. Related Data Series
- Will list and describe related data series relevant to remittances compilation and analysis.
- Note: Data by Partner Economy (Section F of Appendix 4, BPM6) is not included in this Annex and will be included with additional guidance in Annex 11 “Data by Partner Economy”. (Footnote 3)

### Schematic Overview (Structure of the Annex)
- I Economic Concept of Remittances and Why They Are Important
- II Concepts of Residence, Valuation and Time of Recording
- III Standard Components in the Balance of Payments Framework Related to Remittances
- IV Supplementary Items Needed for Compilation of Remittances
- V Related Data Series

### References and Guidance Cited
- BPM6, Appendix 5: Remittances
- International Transactions in Remittances - Guide for Compilers and Users
- GN F.7 Impact of Fintech on Macroeconomic Statistics (posted at Update of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6))

### Key Stakeholders Consulted
- Balance of Payments Task Team
- System of National Accounts Lead Editor
- IMF Statistics Department Financial Institutions Division and Government Finance Division
- Global Consultation of the External Sector Statistics Community

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_Source: https://www.imf.org/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-4-remittances-annotated-outline.pdf_