I'm looking to enhance our wire processes, specifically the information that we obtain at the time of the request. We are a small community bank with a high volume of wire transactions. Do other FI's require/request the purpose/reason for outgoing wires? Do you require this for all your customers? $ thresholds? what's a reasonable explanation? do you deny transactions if customers refuse to supply the reason or reasons are too vague? who monitors the reasons for being acceptable?

Any insight is greatly appreciated. If anyone has a wire req. form they are willing to share, I'm also looking to completely revise ours.

Once again, Thanks!

We request that on all wire out requests. Although we don't initially attempt to verify the veracity of the customer represented purpose, the information is helpful should, in the future, the account get flagged for unusual/unexpected activity. At that point, as needed, we would consider further vetting the stated purpose.

Thanks LiveFromNYC.

Requesting a statement of purpose for a wire transfer is due diligence at a fundamental level. At one end of the spectrum, community banks, it is rarely required. At the other, some banks not only require a statement of purpose, but an invoice in support of that statement of purpose.

Give your customers advance notice of the change in procedure along with an indication that there will be no exceptions. If you want to wiggle your toes in the water a little first, start by requiring it on international wire transfers first.

If your wires can be organized in a spreadsheet format you can compare the purposes your customer has claimed over a period of time...

Thanks Ken! Appreciate your feedback