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#366586 - 06/01/05 08:14 PM Wire Transaction or Monetary Instrument?
NeverEndingSupport Offline
100 Club
Joined: Jan 2004
Posts: 210
Alaska
I need help. We sell international drafts to customers and non-customers by collecting U.S. dollar exchange equivelant from the purchaser. We then wire the funds to Citicorp who issues the draft and mails it directly to the payee or the purchaser, depending on the instruction.

The purchaser isn't initiating a wire, they just wanted a draft. So if the transaction involved $3,000 to $9,9999.99 in cash, should we record it like a monetary instrument or do we record it as an outgoing wire transaction?

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#366587 - 06/01/05 08:37 PM Re: Wire Transaction or Monetary Instrument?
Anonymous
Unregistered

Is the bank the originator of the wire to Citicorp? If so, then I would log it as a monetary instrument.

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#366588 - 06/01/05 10:46 PM Re: Wire Transaction or Monetary Instrument?
NeverEndingSupport Offline
100 Club
Joined: Jan 2004
Posts: 210
Alaska
Yes, we are the originator on the wire.

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#366589 - 06/02/05 03:45 PM Re: Wire Transaction or Monetary Instrument?
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
One fine point: The requirement for recording information on cash purchases of monetary instruments extends for dollar amounts of $3,000 to $10,000 inclusive (because CTR requirements kick in at $10,000.01).
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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