Moving money from one financial institution to another, or from one country to another, is not as easy as it sounds.
Even though the money may be legitimately yours, financial institutions can make you jump through hoops in order to gain access to it.
Moving money in and out of accounts can look suspicious, so it is important to prove that your transfer is legal and for a legitimate purpose. When you want to move money from one account to another, you need to provide various documents and fill out forms to prove who you are and why you are making the transfer. Financial institutions require this process because they need to comply with anti-money-laundering regulations.
Financial institutions may ask to see proof of the source of incoming funds, or may want to see reasons for large transfers of outgoing funds (such as a contract to buy a house). While questions may seem as if they are an invasion of your privacy, it is the regulators’ way of stopping funds from being used for terrorism, drug deals, and other nefarious purposes.
How to transfer money easily and efficiently
When moving money, follow these guidelines:
*Pay close attention to details. The slightest misspelling of a name on a document can create complications.
*Allow enough time. It can take two or three business days for a routine dollar wire to clear. If you then need to convert dollars into shekels, it will take even longer. So leave enough time to make the transfer and to account for unforeseen problems.
*Select a responsible company that is properly qualified to handle your money. Research the bank or money transfer company that you are using to make sure that it satisfies all legal requirements to do money transfers and is sufficiently well-versed in the regulations to do the job properly.
For more information about transferring money, read here.
Douglas Goldstein, CFP®, investment advisor, is the co-author with Grandmaster Susan Polgar of Rich As A King: How the Wisdom of Chess Can Make You a Grandmaster of Investing and director of Profile Investment Services, Ltd., which specializes in helping people meet their financial goals through asset allocation and financial planning.
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 July 12, 2018.