Wire Transfer Regulations

Wire transfers are an exchange of money that can be for private or business purposes. There are regulations governing what information must be collected in order to conduct a transfer. In addition, business and international wire transfers have their own set of regulations.

Purpose

A wire transfer is a way for an individual to move funds from his account to another account by using electronic payments. Banks and companies that handle wire transfers charge fees that are based on the amount transferred.

Information Records

Banks and other financial institutions are required to keep information on any wire transfer greater than $3,000. The institution that sends the wire transfer must verify the identity of the person requesting it.

Personal Information

The institution from where the wire transfer is being sent must collect specific information about the person sending the wire transfer as well as the individual receiving it. The name, address, phone number, bank account number, and routing number are needed.

International Transfers

To do an international wire transfer, you must have the name of the person handling the transfer in the other country and a SWIFT code, which is used to identify the bank receiving the funds.

Business Transfers

For an individual to do a wire transfer for a business, she must have verification that proves she is authorized to make the transaction. This could be done by having the individual be an authorized user of the account.

References

• Federal Communications Commission: Wire Transfer
• Bank of America: Wire Transfer FAQ’s
• Merchants Bank of Vermont: Wiring Money