Sending Money from the USA to Egypt and the Arab World
A simple way to compare providers by what actually reaches your family, plus your legal rights and the new tax rules.
In short: To send money from the US to Egypt, Jordan, Morocco, Iraq, Lebanon or anywhere else, compare how much your family actually receives, not just the fee, because the exchange-rate markup is a hidden cost. Federal rules require remittance providers to show fees, the exchange rate and the amount delivered before you pay, and give you 30 minutes to cancel and 180 days to report an error. Since January 1, 2026, a 1% federal tax applies to transfers paid for in cash, but not to transfers funded from a bank account or card.
What are your options for sending money home?
There are three main kinds of providers, and each fits a different need:
| Provider | How it works | Best for | Watch out for |
|---|---|---|---|
| Bank (international wire) | Your account to a bank account abroad | Large amounts, tuition, installments | Flat fees can be high; an intermediary bank may take a cut |
| Money transfer operators | Agent locations or website; cash pickup, bank deposit or mobile wallet | Family who need cash quickly | Exchange-rate markups vary widely |
| Transfer apps | Funded from your bank account or card | Regular monthly transfers | Confirm the company is licensed and serves your country and payout method |
We don't recommend specific companies because pricing changes daily and by corridor. What matters is knowing how to compare them yourself.
How do you calculate the real cost of a transfer?
The real cost has two parts: the visible fee and the exchange-rate markup, which is the gap between the rate you're offered and the market reference rate. A "no fee" provider can easily earn more from you through a worse rate.
- Fix the dollar amount you'll pay, say $500, including all fees and taxes.
- Get quotes from at least three providers for the same country and payout method.
- Compare only the bottom line: how many pounds, dinars or dirhams land in your recipient's hands.
- Ask about fees on the other end: will the recipient's bank or payout agent deduct anything?
A worked example with hypothetical numbers: Provider A charges $0 but its rate is 3% below the reference rate. Provider B charges $5 with a rate 0.5% below. On $500, A costs you about $15 and B about $7.50. The "free" option was twice as expensive.
What rights do you have under the federal remittance rule?
The remittance rule, explained by the Consumer Financial Protection Bureau (CFPB), covers most electronic transfers from consumers in the US to people abroad, when the provider handles more than 500 transfers a year. Transfers under $15 aren't covered.
- Disclosure before you pay: fees, exchange rate, taxes and the amount expected to be delivered.
- A receipt afterward showing when the money will be available.
- 30 minutes to cancel at no charge, unless the money has already been picked up or deposited.
- 180 days to report an error, counted from the disclosed delivery date. The provider must investigate, and if the money never arrived you may be entitled to a refund or a resend.
- Disclosures in your language, generally, if the provider advertises or does business in Arabic.
Don't wait until day 179. Report a problem as soon as you spot it, and keep your receipt and tracking number.
The new 1% remittance tax (since 2026)
According to the IRS, starting January 1, 2026, a 1% tax applies to remittances sent from the US to recipients abroad when the sender pays the provider in cash, a money order, a cashier's check or a similar physical instrument. Transfers funded from a bank account or with a debit or credit card are not subject to it.
The sender owes the tax; the provider collects it and pays it to the IRS. In practice, if you walk into an agent with cash every month, funding the transfer from your bank account avoids that 1%. No account yet? See how to open a bank account in the US.
| How you pay the provider | Subject to the 1% tax? | On a $500 transfer |
|---|---|---|
| Cash at an agent location | Yes | About $5 extra |
| Money order or cashier's check | Yes | About $5 extra |
| From a bank account | No | No remittance tax |
| Debit or credit card | No | No remittance tax (watch credit card fees) |
Which payout method suits your family?
Payout method affects both price and speed. Bank deposit suits larger, regular amounts and leaves a clear paper trail. Cash pickup helps older relatives or anyone without an account, but needs an exact ID match and a trip to an agent. Mobile wallets are available in some Arab countries and are fast, with lower limits. Ask your family what's easiest and which currency they prefer, then compare providers on that exact method; the cheapest for bank deposit may not be cheapest for cash.
Do you owe tax when you send money to family as a gift?
Under US rules, gift tax generally falls on the giver, not the recipient. Each recipient comes with an annual exclusion: as of September 2026, the IRS lists it at $19,000 per recipient for 2026 (the same as 2025).
- Sending your mother $6,000 over the year is under the exclusion, so there's no gift tax return to file for her.
- Go over the exclusion for one person in one year and you must file Form 709. Filing it doesn't necessarily mean you owe tax.
- Gifts aren't deductible on your income tax, except qualifying charitable contributions.
Rules get more complicated for noncitizens and for large amounts, such as helping buy property back home, so talk to a qualified tax professional first. Start with our US taxes guide, and if you keep accounts in your home country, read our FBAR guide.
Practical notes for sending to Arab countries
- Match the name exactly. Enter the recipient's name as it appears in Latin letters on their national ID or passport. Mohamed versus Mohammed can hold up a cash pickup.
- Ask which currency is paid out. In some countries your family can receive dollars or local currency, and the rate difference can be large.
- Check coverage. Not every provider serves every country or payout method, and some destinations carry extra restrictions.
- Keep records. Hold on to your receipts; you may need to show the source or purpose of funds.
Informal hawala: why the risk isn't worth it
Hawala runs on trust: you hand cash to someone here, and a partner pays your family there. It can look cheaper and faster, but the risks are real.
The Treasury Department's Financial Crimes Enforcement Network (FinCEN) treats informal value transfer systems, hawala included, as money transmitters that must register with it, no matter how small. Operating unregistered carries civil and criminal penalties. And if your money disappears with an unregistered broker, you have none of the cancellation or error-resolution rights above.
How do you avoid money transfer scams?
International transfers are hard to reverse once collected, which is why scammers love them. The CFPB flags these warning signs:
- Someone you've never met in person asks you to send money, whether a "relative" on the phone or a romantic interest online.
- Pressure to act now, or a deal that's "only good today."
- A request to pay by wire, gift card or cryptocurrency.
- A message or call that seems to come from a government agency or bank. Voices and letterheads can be faked with AI, so call the organization at its official number.
If you've paid a scammer, contact the provider you used immediately. If an "official" letter is asking you to wire money, check it against our guide to official letters.
Common mistakes
- Comparing fees only and ignoring the exchange rate.
- Paying cash when you could fund from your account, and paying the 1% for nothing.
- Typos in the recipient's name or account number, followed by weeks of waiting.
- Using an unregistered broker because "everyone in the community uses him."
- Tossing the receipt before your family confirms they got the money.
What next?
If you send a fixed amount every month, pick one bank account and one licensed provider after comparing, then recheck prices every few months. Build the transfer into your monthly budget, too; our cost of living guide helps you plan.
Frequently asked questions
Is there a tax on sending money from the US?
Since January 1, 2026, a 1% tax applies to remittances paid for in cash, by money order or by cashier's check. Transfers funded from a bank account or with a debit or credit card aren't subject to it.
Can I cancel a transfer I sent by mistake?
With providers covered by the remittance rule, you have 30 minutes to cancel at no charge unless the money has already been picked up or deposited.
Do I owe gift tax on money I send my family?
Gift tax generally falls on the giver. The 2026 annual exclusion is $19,000 per recipient; above that you file Form 709, which doesn't necessarily mean you owe tax.
Is hawala legal in the US?
Anyone transferring money as a business, hawala included, must register with FinCEN. With an unregistered broker you also lose your cancellation and error-resolution rights.
What if my transfer never arrives?
Contact the provider right away and keep your receipt. You have 180 days from the disclosed delivery date to report the error, and the provider must investigate.
Official sources we reviewed
- CFPB: What Are My Rights When I Send Money Internationally? ↗
- CFPB: Money Transfers — Key Terms ↗
- IRS: Proposed Regulations on the New Remittance Transfer Tax ↗
- IRS: Frequently Asked Questions on Gift Taxes ↗
- FinCEN: Money Services Business (MSB) Registration ↗
- CFPB: Warning Signs of Fraud and Scams ↗