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#1590545 - 08/11/11 12:48 PM International wire change
NotDoneYet Offline
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NotDoneYet
Joined: Jul 2010
Posts: 482
PA
Something unusual has come up in my monthly review of our wire log. The transactions are common and ongoing between one of our big business customers and a Mexican business. Suddenly, the transfers are appearing as domestic wires instead of international. My online search does not show the company as having any new locations in the US. I am wondering if the proposed reporting some banks may have to do concerning cross-border transactions is resulting in this business finding a loop hole so this isn't going to show up? It's just odd and I am trying to risk assess this change. Has anyone else noticed a change like this?
Thanks for any insight and help in advance!

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#1590559 - 08/11/11 01:06 PM Re: International wire change NotDoneYet
AFaquir Offline
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AFaquir
Joined: Jan 2011
Posts: 763
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I haven't seen a change like this. However they may have opened up a domestic account.

Compare the routing and acconut numbers of the old foreign wires to the routing and account numbers of the new wires. I will bet you will see it change from a Mexican Bank to a large regional or major us bank, B of A I will bet.

This is not unheard of. However if you don't feel comfortable with this, I would just add some additonal due diligence or contact your customer to politely inquire about this activity, and monitor the account(s) more frequently.

Cheers!
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#1590613 - 08/11/11 02:11 PM Re: International wire change AFaquir
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 3,959
New York City
I doubt any banks are making changes based on proposed rules at this time. Especially considering that the ABA is lobbying very hard against this particular proposal. If your search produced no results, I would contact the customer for more information. Something in their business could have changed.
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#1590853 - 08/11/11 06:38 PM Re: International wire change ACBbank
NotDoneYet Offline
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NotDoneYet
Joined: Jul 2010
Posts: 482
PA
I don't think the banks did. I was thinking more the businesses are trying to stay out of the future cross-boarder reporting by setting up US branches before it happens. My suspicious nature at work.
Anyway,I've done my due diligence and I am documenting it for Audit Committee since the numbers will change and I wanted to have the reasoning ready.
Thanks for all your help!

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#1591193 - 08/12/11 02:26 PM Re: International wire change NotDoneYet
cbinder63 Offline

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cbinder63
Joined: Dec 2001
Posts: 674
Colorado
Perhaps they have started using a Foreign Exchange Market (Forex) to trade the currencies directly.
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