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#1967461 - 10/07/14 02:07 PM Wire purpose
CO Banker Offline
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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.

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#1967477 - 10/07/14 02:34 PM Re: Wire purpose CO Banker
What?? Offline
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What??
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Also interested in knowing.

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#1967494 - 10/07/14 02:42 PM Re: Wire purpose CO Banker
gacompliancegirl Offline
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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.
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#1967524 - 10/07/14 03:10 PM Re: Wire purpose CO Banker
Skittles Offline
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gacompliance - just a question out of curiosity - if the customer doesn't want to give the purpose of the wire do you refuse?
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#1967540 - 10/07/14 03:36 PM Re: Wire purpose CO Banker
rlcarey Offline
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Galveston, TX
We may be impacted by FATCA for foreign wires

Care to explain???
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#1967556 - 10/07/14 03:54 PM Re: Wire purpose CO Banker
CO Banker Offline
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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%.

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#1967557 - 10/07/14 03:57 PM Re: Wire purpose CO Banker
Xian Ngyuen Offline
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Some countries, India for example, require purpose of the wire on all cross-border wire transfers.

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#1967632 - 10/07/14 05:53 PM Re: Wire purpose CO Banker
rlcarey Offline
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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?
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