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Federal Reserve Rules on Bank Wire Transfers

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    Foreign Nations

    • Bank wire transfers that come from foreign nations must comply with strict rules. Transfers cannot go directly to a Federal Reserve bank from a foreign nation. However, an American bank can be used as an intermediary in a "double wire transfer" format, where the money from overseas is transferred to an American bank, which then immediately transfers the money to a Federal Reserve bank. Federal Reserve banks are required to keep records of most transfers that originate from foreign nations.

    Disclosures

    • Banks must provide disclosures to customers who use wire transfers. These disclosures are supposed to be provided immediately. They can be provided in a foreign language if the person or company involved in a wire transfer is from a non-English speaking nation. Timing, fees and reporting to government agencies or third parties should all be clearly laid out at the time of a wire transfer. Specifically, all banks in the United States should disclose that the usual privacy policy for clients can be overturned in the case of a criminal investigation.

    Records

    • Banks are required to keep records of wire transfers for at least two years to the day after the transfer takes place. If this date falls on a nonbusiness day, the bank must hold the records until the next open business day. In addition, a bank must maintain records for any wire transfer that is under investigation or may be involved in a criminal investigation. Banks receive notice from the appropriate investigative unit about any transfers, companies, individuals or specific transactions that involve records that should be preserved.

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