Skip to content
BOL Conferences
Thread Options
#2065340 - 02/22/16 07:48 PM International Wires on IOLTA accounts
LSmith Offline
Platinum Poster
LSmith
Joined: Dec 2002
Posts: 703
According to the ALTA Best Practices Framework: Title Insurance and Settlement Company Best Practices, banks are asked if they
can
• Utilize Positive Pay or Reverse Positive Pay, Automated Clearing House blocks and international wire blocks, if available.

Does this mean that an International wire CANNOT be sent from an IOLTA account or that there are Controls and Procedures as to who has authority to wire funds, not that we can’t send one.

Return to Top
Deposits and Payments
#2065360 - 02/22/16 08:11 PM Re: International Wires on IOLTA accounts LSmith
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Sorry, but what do ALTA and IOLTA have in common???
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2065370 - 02/22/16 08:31 PM Re: International Wires on IOLTA accounts LSmith
LSmith Offline
Platinum Poster
LSmith
Joined: Dec 2002
Posts: 703
This comes from the ALTA Best Practices documentation. This concerns Trust accounts. We have had numerous requests from Attorneys asking us if we can block International Wires. We cannot, but we do have a 100% call back procedure among other safeguards.


2. Best Practice: Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.
Purpose: Appropriate and effective escrow controls and staff training help title and settlement companies meet client and legal requirements for the safeguarding of client funds. These procedures help ensure accuracy and minimize the exposure to loss of client funds. Settlement companies may engage outside contractors to conduct segregation of trust accounting duties.
Procedures to meet this best practice:
• Escrow funds and operating accounts are separately maintained.
o Escrow funds or other funds the Company maintains under a fiduciary duty to another are not commingled with the Company’s operating account or an employee or manager’s personal account.
• Escrow Trust Accounts are prepared with Trial Balances.
o On at least a monthly basis, Escrow Trust Accounts are prepared with Trial Balances (“Three-Way Reconciliation”), listing all open escrow balances.
• Escrow Trust Accounts are reconciled.
o On at least a daily basis, reconciliation of the receipts and disbursements of the Escrow Trust Account is performed
o On at least a monthly basis, a Three-Way Reconciliation is performed reconciling the bank statement, check book and Trial Balances.
o Segregation of duties is in place to help ensure the reliability of the reconciliation and reconciliations are conducted by someone other than those with signing authority.
o Results of the reconciliation are reviewed by management and are accessible electronically by the Company’s contracted underwriter(s).
• Escrow Trust Accounts are properly identified.
o Accounts are identified as “escrow” or “trust” accounts. Appropriate identification appears on all account-related documentation including bank statements, bank agreements, disbursement checks and deposit tickets.
• Outstanding file balances are documented.
• Transactions are conducted by authorized employees only.
o Only those employees whose authority has been defined to authorize bank transactions may do so. Appropriate authorization levels are set by the Company and reviewed for updates annually. Former employees are immediately deleted as listed signatories on all bank accounts.
• Unless directed by the beneficial owner, Escrow Trust Accounts are maintained in Federally Insured Financial Institutions.
• Utilize Positive Pay or Reverse Positive Pay, Automated Clearing House blocks and international wire blocks, if available.
o Background Checks are completed in the hiring process. At least every three years, obtain Background Checks going back five years for all employees who have access to customer funds.
• Ongoing training is conducted for employees in management of escrow funds and escrow accounting.

Return to Top
#2065385 - 02/22/16 09:02 PM Re: International Wires on IOLTA accounts LSmith
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
ALTA is a title company trade association. What you are quoting are best practices for title companies to follow internally with thier own accounts. It has nothing to do with the bank.

IOLTA accounts are attorney accounts that hold funds that belong to thier clients.

There is no relationship between the two.

If you have attorneys that don't want you to wire out funds internationally, tell them not to submit such orders. You normal security procedures would not allow an improperly placed order wire transfer to occur..
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2065536 - 02/23/16 04:59 PM Re: International Wires on IOLTA accounts LSmith
LSmith Offline
Platinum Poster
LSmith
Joined: Dec 2002
Posts: 703
Thanks

Return to Top

Moderator:  John Burnett