What Are the Basic Requirements for Money Transfers?

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    Record Keeping

    • Requirements of the Department of the Treasury state that for transfers totaling more than $3,000, banks must keep records of the details of the transaction. Businesses transferring funds within the company or between branches are exempt from this requirement.

    Sending

    • To send a wire transfer, the sender is required to provide information to the sending bank for the funds to be transferred. This information includes details about the receiving bank and branch details, the recipient's bank account number, the name and address of the recipient and the sender's name and address

    Receiving

    • To receive a wire transfer, the recipient is required to provide information to the sender. This information includes details about the the recipient's bank and address, the routing transit number of the receiving account, the account number receiving funds and the name on the account as it appears on bank statements.

    Reporting

    • Financial institutions are required to follow two federal record keeping rules, the Joint Federal Reserve Board and Department of Treasury Record Keeping Rule and the Department of Treasury Travel Rule. These rules require information be collected about money transfers including the name and account number of the sender and recipient, the address of the sender, the amount of the transfer, the identity of the receiving institution and the name and address of both receiving and sending financial institutions.

    Suspicious Activity

    • Federal standards have been established by the Comptroller of Currency that require banks to report transactions which meet the standards. These standards apply to transfers from personal accounts to countries that hide banking information; transfers of larger whole dollar amounts such as $1,000; transfers both into and out of the same account or multiple accounts on the same day; multiple transfers less than $3,000 that are then consolidated into one account; and regular sizable transfers into nations known for criminal activity.

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