Five Tips for Wiring Funds to Non-U.S. Banks

As your mission organization spreads the good news around the world, you may encounter a need to transfer money to an international account. These transactions can be complex, so it is good to exercise caution and due diligence. Understanding the process can help you avoid delays in delivering money to those who need it. Here are some suggestions to consider. 

Check with Your Bank

Most U.S. banks should be able to guide you through the process of sending funds internationally. They will be able to share anything specific they require for these transfers. Also, they may be able to help you understand requirements from intermediary banks, the destination bank, or a foreign government.

As an alternative, your mission organization could consider working with a financial institution that specializes in international transfers.

Understand the Process

This article from U.S. News & World Report details a few factors to think through before initiating an international transfer, such as: 

• Transfer fees (charged by your bank and other institutions).
• Currency exchange rates.
• Minimum and maximum transfer amounts.
• Time required to complete a transaction.
• Requirements of the destination country.

Double-Check the Transaction Details

Make sure everything is accurate before attempting to execute the transfer, including: 

• Your name, address, and bank account information.
• Your recipient's name, address, and bank account information.
• Any bank identifier or routing numbers, such as the IBAN (International Bank Account Number) or SWIFT (Society for Worldwide Interbank Financial Transactions) Code.
• The currencies used in the transfer.

International transfers can be complicated, and any details that don't line up could cause delays in processing the transaction. 

Consider Applicable Laws, Sanctions, and Regulations

Government restrictions may limit your ability to wire funds to certain destinations. Ask yourself the following questions before moving forward.

• Will any United States trade sanctions prohibit the transfer? The U.S. Treasury Department's Office of Foreign Asset Control (OFAC) publishes applicable restrictions for both countries and individuals.
• Will any foreign regulations affect your transfer? The destination country could prohibit or restrict the transfer of U.S. funds into their country.
• Will any federal financial laws or filing requirements apply? For example:
  • Any U.S. person that “has a financial interest in or signature authority over foreign financial accounts” must file an IRS report of Foreign Bank and Financial Accounts (FBAR) if the accounts ever exceed $10,000 in value during the calendar year.
  • Under the Foreign Account Tax Compliance Act, certain U.S. taxpayers holding financial assets outside the United States must report the assets to the IRS.

Tax laws and required filings are often very complex. Your ministry would likely benefit from consulting with a locally licensed tax professional, such as a CPA or tax attorney. This person can help you make sure you are considering all applicable laws and protecting your ministry's interests.

Consult with a Licensed Attorney

A licensed international law attorney can help make sure your mission organization complies with local and foreign laws about financial transfers.

If you need help locating one, it may be helpful to seek a referral from a reputable source. Brotherhood Mutual doesn’t endorse any resource providers, but an organization like the International Lawyers Network may be able to point you in the right direction. As you would do before hiring any contractor, you’ll want to conduct your own research and evaluate any recommendations before hiring an attorney.

Related Resource

• OFAC Regulations

Posted September 2, 2021