Skip to content
BOL Conferences
Thread Options
#1967461 - 10/07/14 02:07 PM Wire purpose
CO Banker Offline
New Poster
Joined: Dec 2011
Posts: 11
I am curious if other FI's ask for the purpose when sending wire transfers? If so, do you have it set to just ask if it is personal or business-related, or do you have a fill in the blank response. Do you differentiate between domestic and foreign wires?

We started asking for the purpose of the wire about a year ago for all foreign wire transfers with a fill in the blank response. We recently received feedback from a banker's association that they typically see FI's only ask if it is for personal or business. We may be impacted by FATCA for foreign wires so trying to get a better understanding of what others are doing. Thanks.

Return to Top
BSA/AML/CIP/OFAC Forum
#1967477 - 10/07/14 02:34 PM Re: Wire purpose CO Banker
What?? Offline
100 Club
What??
Joined: Feb 2007
Posts: 170
California
Also interested in knowing.

Return to Top
#1967494 - 10/07/14 02:42 PM Re: Wire purpose CO Banker
gacompliancegirl Offline
100 Club
Joined: May 2009
Posts: 234
hanging on by a thread
We require it on international wires. We consider those to be more high risk than domestic wires and that information is pertinent to our BSA program. However, we have also trained our staff to ask the question of anyone if the wire seems outside of normal activity for the account.
_________________________
Help find a cure for diabetes - www.jdrf.org

Return to Top
#1967524 - 10/07/14 03:10 PM Re: Wire purpose CO Banker
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,965
TN
gacompliance - just a question out of curiosity - if the customer doesn't want to give the purpose of the wire do you refuse?
_________________________
My Opinions Only

Return to Top
#1967540 - 10/07/14 03:36 PM Re: Wire purpose CO Banker
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
We may be impacted by FATCA for foreign wires

Care to explain???
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1967556 - 10/07/14 03:54 PM Re: Wire purpose CO Banker
CO Banker Offline
New Poster
Joined: Dec 2011
Posts: 11
http://www.aba.com/Issues/Index/Documents/FATCAWithholdingexceptionswiretransfers.pdf

This is hard for us to interpret, but if we have knowledge of the payment, and it is a withholdable payment, we may need to withhold 30%.

Return to Top
#1967557 - 10/07/14 03:57 PM Re: Wire purpose CO Banker
Xian Ngyuen Offline
100 Club
Joined: Aug 2013
Posts: 221
Some countries, India for example, require purpose of the wire on all cross-border wire transfers.

Return to Top
#1967632 - 10/07/14 05:53 PM Re: Wire purpose CO Banker
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Originally Posted By: IA Banker
http://www.aba.com/Issues/Index/Documents/FATCAWithholdingexceptionswiretransfers.pdf

This is hard for us to interpret, but if we have knowledge of the payment, and it is a withholdable payment, we may need to withhold 30%.


That's fine and dandy - how does that apply to you as a domestic financial institution sending wires for your customers?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z