Money Transfers: What’s Bothering The Bank and General FAQs

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Money Transfers: What’s Bothering The Bank and General FAQs

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A consistent concern that comes up in discussions with clients is that they get so nervous when transferring funds, mostly because they are terrified that their banks will begin asking questions and delaying their transactions. Of course, for good law-abiding citizens, there is no reason for concern, but banks may be giving you a hard time anyway. Here are some basic tips to help you relax and ensure transfers are executed smoothly.

 

Are the bank’s concerns justified?

The banks have been charged with investigating money transfer transactions to maintain compliance with anti-money laundering regulations and related international agreements. Bank employees are personally responsible for every transaction that they touch, hence their paranoia. As long as you know your source of funds is legitimate and properly taxed, you should have no reason for concern, although it may take your banker some time to feel as certain as you are.

Are we doing something wrong?

International agreements require banks to verify that your sources of income are properly reported and taxed in every relevant jurisdiction in the world. Assuming you properly report your income each year, you should be fully compliant. However, beware if you have been avoiding or circumventing certain reporting requirements in any country. There are no secrets and tax authorities actually have agreements for sharing of information between countries.

Are we doing something illegal?

Transferring funds internationally is not illegal. Millions of dollars are being transferred on a daily basis between banks and countries. If you feel your bank is intimidating you, tell them to explain what their concern is, ask them “is there something illegal about my transaction? Please tell me what it is!” In most situations, they will have no clear response and will accept the transfer for you.

Are there tax ramifications when transferring currency?

No. Transferring funds in itself is not a tax event. It does not trigger any tax. But once again you should be certain that your source of funds has been properly reported and taxed.

Will it cause more reporting requirements?

No. Transferring funds does not cause reporting requirements. Of course, US citizens should be including their Israel bank accounts in their annual F-BAR report. Check with your accountant for more information about FBAR requirements.

Is it important to keep transactions under $10,000?

No. We recommend doing transactions properly per your needs, and with full disclosure. Financial institutions report all transactions in accordance with their local laws and international agreements. Attempts to circumvent regulations may in themselves raise a red flag that may trigger a suspicious report.

How can we make it easier?

Just do your transactions properly “Bederech Hamelech.”  It is better to work within the system properly than to try to beat it. Properly licensed transfer companies, like Adesco Bridge, are equipped and obligated to help you do things correctly. Transferring funds through licensed operators should typically save you time, money and headaches.

 

Feel free to contact us with any questions big or small!

073 -731-5100 or info@adesco.co.il

Adesco Bridge Ltd. is a licensed currency services provider that provides professional banking advisory services to both corporate and private clients.

 

 



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