Frequently Asked Questions (FAQs)
Responses to the most frequently asked questions by our customers are given below
Is it safe?
As required by Sri Lankan law, Kapruka has deposits in dollars in each bank we deal with. Your remittances are paid out of these funds. Therefore your money is safe.
Can you give discounts for multiple transfers at one time or for regular customers?
There is a cost to running a business. We have maintained the same prices since inception in 1999 in spite of increases in our costs. Sorry we cannot give discounts for regular customers or multiple remittances
How much time will it take for payments to be credited to the beneficiary accounts
Please follow this link to the table with this information.
What if my beneficiary does not get the money in time?
As we use legal channels for our transfers the money you send can always be traced even after 5 years. Where possible we follow up to ensure transactions have gone through correctly. On several occasions we have informed the sender when the beneficiary has failed to collect over the counter payments from the bank. Please refer to the bank contacts in Sri Lanka.
What if my beneficiary is paid less than the quoted amount?
Sometimes people forget that Sri Lanka banks charge a local fee. Always check with your beneficiary and if the amount is short we will take it up with the bank.
Can I cancel my transfer?
If your beneficiary has not withdrawn the money banks can reverse the transaction for which they will charge a fee.
What if you have missed my transaction?
Here we need your help. When transferring money to our account especially by EFT, please indicate your customer ID so we can easily identify your deposit.
There are several other methods by which you can inform us of your deposit. You can use the Deposit form on our web site. You can also email us or call us during business hours.
If you have a standing order for remittances, please include your customer ID on this to ensure we do not miss your remittance.
Please check your email for the receipt. Sometimes the receipt can go to the Junk/Spam mail folder therefore please check in this folder also.
What about discount to charities?
If yours is a registered charity in Australia remitting money to a legal charity in Sri Lanka we will, at our discretion, remit the money free.
What are the minimum and maximum amounts we can remit?
There is no minimum amount, however, we cannot give a discount on our fee because the amount is small as our costs for each transaction is the same irrespective of value.
There is also no upper limit. The only requirement is that the money should be legally earned and you have paid tax on it. If you bring amounts over $10,000 in cash we have to report to AUSTRAC our regulatory authority. In Sri Lanka if the beneficiary receives over Rs. 500,000 Central Bank form No. 2 has to be filled out giving details of purpose of funds, relationship to sender and source of funds.
Due to costs we incur, we have an upper limit of $9,000 for remittances to NRFC accounts. There is no upper limit for LKR transfers.
Why is your exchange rate low than in Sri Lanka?
Our payments are made from funds we have deposited in banks and are paid out by the bank at the prevailing rate. There can be a Rs 3/- difference between the buying and selling rate.
Ours is not a chit or hawala (Undial) system of transfer. We cannot offer black market rates.
You can always remit in dollars, however the local bank fees and our charges are higher for these transfers. When you transfer, the foreign exchange risk is yours. Rates can change by the hour.
Once we set the rate it remains the same for the whole of that day in spite of market fluctuations that may occur through the day as we absorb the exchange risk.
Our rate is not negotiable.
When do you get the highest exchange rates? Can you inform us when the rate is high
Exchange rates depend on a host of factors. There is no pattern and the rate cannot be predicted before hand.
We are sorry we cannot inform you individually.
What risks are there for customers?
Our absence from work due to unforeseen circumstances. You are advised to check our availability before making deposits. Technical problems with internet and computers may delay the transfers at both ends.
What if my beneficiary passes away?
If it is an over-the-counter payment, we can arrange for the money to be paid to another beneficiary or to be refunded.
If the money has been paid to an account, there are procedures laid out by the banks that have to be followed. Please check with the recipient bank in this event.
How can we obtain receipts of past transactions
We can email you past receipts free of charge. If however you require certified hard copies, we will levy a fee for these to cover our costs.
What about the privacy of our records and transactions?
We comply strictly with Australian Privacy Laws at all times. Your personal details will be used only for the purpose of remitting monies and will not be divulged to anyone outside Kapruka Pty Ltd.
Transaction details are confidential and are not available even to spouses.
Why are we required to provide Date of Birth and Identity card details?
From the 1st of January 2008, AUSTRAC has brought in new regulations that require us to obtain this information. This is required to enable identification of remittances. DoB also helps in the event that two people with the same name exist and use the same service.
Can I get Tax deductions for my remittances?
No. Please check with your accountant if a deduction is possible for remittances to charities.
Is there a tax to be paid by the recipient?
Family assistance payments are normally tax free.
Does the government know about our transfers?
Yes, every transaction is reported to AUSTRAC.
Can I bring money from Sri Lanka
Usually it is not possible. For more details please contact the bank you use in Sri Lanka and read the Central Bank regulations. We do not provide this service.
Can I pay by Credit card or BPay?
No. There is a bank charge of up to 3% commission from us on these facilities. However you may use Paypal.
As a student can I remit money? If I remit money will this affect my TR/PR application in future?
For tax purposes students are considered citizens and are eligible to remit monies they have earned and paid taxes on.
As regards this affecting your future TR/PR application, please check with an immigration lawyer for a ruling on this.
Is Kapruka paid commissions by Sri Lanka Banks?
No. On the contrary we are charged a interest if our accounts in any of the banks is in overdraft and we are also pay an account keeping fees.
Can the monies we send be used for their personal gain by bank officials in Sri Lanka?
No. Your remittance has an audit trail and can be tracked.
Can I send gifts through you?
Kapruka.com is a separate company operating from the US.
Can I get an advertisement for our Souvenir?
As part of our Social Responsibility policy we give advertisements to a registered charitable community organisations for worthy causes for their fund raising however our budget for this is limited. Advertisements are a cost that is passed to the customer.
We don't have flashy one page advertisements in newspapers as we want to keep costs to our customers as low as possible.
Do I have to declare NRFC accounts to the Australian Tax Office?
Any income earned by an Australian citizen anywhere in the world has to be declared to the ATO. While the remittance to your NRFC is made out of tax paid income, this does not have to be declared, however any interest derived from these remittances have to be declared as this is an income and you do not pay any taxes in Sri Lanka for this.
Please contact your tax agent for more details on this.
Can you deny us the service?
Yes if we believe there are suspicious circumstances. We also have to report such matters to AUSTRAC.
I am a Sri Lankan/Dual citizen. Can I open a rupee account?
Sri Lanka has introduced a new rupee based investment accounts. When you are a permanent resident overseas, you cannot open current accounts in LKR. You can however continue to use the accounts you already have.
I am an Australian citizen can I open an NRFC account?
Yes, any person of Sri Lankan origin can open an NRFC account.
Can I open a joint NRFC account with my beneficiary in Sri Lanka?
No. NRFC is meant for people who reside outside Sri Lanka. Person in Sri Lanka can open an RFC account. Please contact your bank for details.