If you attempted a money transfer recently, you may have been surprised at the amount of documentation you were asked to provide.
Any financial institution can ask for proof as to why you’re moving money. They do this to make sure that they are in compliance with anti-money-laundering regulations.
Even law-abiding citizens may need to submit extra proof when they want to transfer funds from one financial institution to another, especially between banks and brokerage firms.
Bank accounts enable you to take care of daily money needs: pay bills, write checks, use credit cards, or make automatic bank transfers. An investment account is geared to long-term growth or, depending on the holdings, steady income payments (bond interest, dividends, etc.). Even if you have liquid investments in such an account, moving money in and out can raise suspicion.
Possibly suspicious activities even if they are 100% legit
Legitimate money transfers may get flagged as suspicious, so be prepared to show extra documentation in the following cases:
- Sending money to an account with a different name (even to a child)
- Receiving funds and sending them out again shortly thereafter – for example, to buy a house. Be prepared to show proof, like a contract.
Every bank and brokerage house has its own regulations. Before transferring money, make sure you understand what documentation you need to provide and how long it will take the funds to move.
While your money is yours, you may need to follow certain rules to access it. Though we can’t eliminate documentation requests, Profile Investment Services, Ltd. deals with money transfers on a regular basis and can advise you about what you can do to make moving your money go more smoothly.
To get help with oversight of your American brokerage account and accessing your money, be in touch with our office for customer-oriented service and professional advice (02-624-2788). Or, if you want to learn why transferring money could be expensive, click here.
Douglas Goldstein, CFP®️ is the director of Profile Investment Services, Ltd. www.Profile-Financial.com He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published March 6, 2017.