If you have to send money internationally, you need to understand the rules and regulations of sending money abroad. The laws that control the international money transfer are unique to every country. You need to understand the regulations in your country and the country you are sending money to.
International Wire Transfer Reporting Requirements
The service provider or bank you choose should guide you in the process of transferring money abroad. You should ask the service provider whether they have a limit on the amount of money you can send abroad. Amount varies depending on the value you are sending, currency, and the country you are sending money to.
For sending money
If you are making a money transfer internationally, the service provider is normally responsible for providing legal paperwork, reports, and retaining your information in case there is a follow-up about the transfer. A company like Western Union takes care of the paperwork and guides you around any paperwork that you need to fill in the process.
For receiving money
If you are the recipient of an international transaction, you might be responsible for the report depending on the situation. Sometimes you have very little to provide other than your identification to authenticate receipt. However, if you are receiving money in an overseas account in your name, you are required to file a report with the IRS. This applies to you if you have had $10,000 or more in that account at any time in a calendar year.
If you have an overseas account, you need to learn more about your responsibilities as an account holder. Sometimes this means that you should seek legal advice to ensure you understand your duties and you perform them properly to avoid having mishaps during transactions.
International Wire Transfer Regulations
There are different ways of transferring money internationally. These methods have different regulations.
Inward and outwards remittance
Receiving money is known as inward remittance while sending money is outward remittance. Wire transfer is the easiest way for international money transfer to your employees, family, or business associates. Different governments have laws in place to assist the third-party operators and the people transacting to have a smooth operation. International money transfer through the bank wire system is the safest method.
There are online and offline services where you provide the name of receiving bank, the purpose of sending money, the currency being transferred, the bank account number of the recipient, and the SWIFT code. This is standard across most banks. If you are doing a fixed deposit, you might not need the account number.
Global Payment Services
You can also opt to send money through offline service providers like Western Union or MoneyGram. Here are some of the laws you need to know while transacting with Western Union;-
- You do not need a bank account, citizenship documents, or credit cards. You need photo identification from the government.
- The agent needs you to have a credit or debit card that the company accepts for an online transfer to be done.
- You can send money to a mobile phone if the Telco Company accepts.
- There are limits to how much you can send in a day between two countries. For example, the maximum you can send in India is $2500 a day.
With that said, it would be helpful if you read and understand different laws that regulate international money transfer.