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#1247821 - 09/10/09 02:19 PM Wire Travel Rule
Tocomply Offline
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We wire funds to correspondent clients that have a line of credit for lending to customers. If we elect to not put the ultimate borrowers' name on wires to the clients, will this violate the Travel Rule?

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#1247880 - 09/10/09 02:47 PM Re: Wire Travel Rule Tocomply
Elwood P. Dowd Offline
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I do not understand the fact situation, but if the funds you are sending belong to your customer there is no election available to you. You must include the name of the transmitter (originator).
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#1247939 - 09/10/09 03:19 PM Re: Wire Travel Rule Elwood P. Dowd
Tocomply Offline
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The funds go to our customer, the lender. They in turn pay the customer. So no, the borrower is not our customer only the client we send the funds to.

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#1248070 - 09/10/09 04:21 PM Re: Wire Travel Rule Tocomply
Tocomply Offline
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This is the quaestion I received. For the travel rule: A mortgage Warehouse is lending money to a lender who will in turn make a loan to a borrower who wants a mortgage. Does the borrower's name have to be on the wire?

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#1248079 - 09/10/09 04:27 PM Re: Wire Travel Rule Tocomply
Elwood P. Dowd Offline
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In my opinion, no. This is simply a bank to bank wire.

Having the borrower's name on the wire might be useful for audit purposes.
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#1248094 - 09/10/09 04:42 PM Re: Wire Travel Rule Elwood P. Dowd
ACBbank Offline
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I would agree with Ken. It looks like a bank to bank wire to me as well.
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#1248126 - 09/10/09 05:16 PM Re: Wire Travel Rule ACBbank
Hrothgar Geiger Offline
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I'm going to nit-pick a little here...

First, I do agree that a wire showing the mortgage warehouse as the originating party and the lender as the beneficiary party (and assuming all the address and account information is present) would comply with the travel rule.

I disagree with the sentiment that this is categorically a bank-to-bank wire. It's only a bank-to-bank wire if both entities are banks. If the 'mortgage warehouse' is some other type of non-bank financial institution, they may not have the capacity to send a SWIFT 202 to a bank. They may be sending a 103. And that's only if they're a SWIFT member. If the wire is funded by their account on another bank, then it's clearly a third party wire...

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#1248149 - 09/10/09 05:35 PM Re: Wire Travel Rule Hrothgar Geiger
Elwood P. Dowd Offline
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I don't have a problem with that, but you have to assume more facts than were offered to get there. Also, I'm not certain how that would require the name of the borrower, the question actually asked.
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#1248223 - 09/10/09 06:22 PM Re: Wire Travel Rule Elwood P. Dowd
Hrothgar Geiger Offline
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Similarly, you have to assume more facts than are presented to say that it's a bank-to-bank wire.

In any event, I agreed with the general conclusion reached by others.

In my opinion, the borrower's name is only required (using the example provided) if the wire contains the 'for further credit' instruction.

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