Multi Currency Notes – Bank Transfer Risks

by | May 19, 2008 | Archives

Multi currency investing is complicated by bank transfer risks.

Yet we must prevail because bank transfer risks are everywhere as you can see below.

An even bigger risk is inflation and the risk of losing your purchasing power if you do not hold multi currency portfolios.

Last month a multi currency message at this site looked at the growing “need to know” dilemma banks (and hence their clients) are facing.  It is becoming increasingly difficult to transfer money from one bank to another without proving the source.

If you missed that message read it at Multi Currency Banking Problem.

That message was written after I had transferred a down payment to my
attorney to buy some condos on Ecuador’s  beach.

My attorney’s bank refused to release the funds until I proved the source of funds.

My bank in Denmark, who wired the money in the first place, kindly sent an email stating that the funds had come from my pension account.  This did not satisfy the Quito bank.

Finally after more than two weeks, and only after my Ecuador attorney threatened to take legal action, were the funds finally paid.

“What is going on?”, I asked.

After checking around it has become evident that the first problem is that governments worldwide have decided they must know more about the flow of money to help them prevent terrorism.

The second problem is that these governments have placed the burden of this tracking on banks.

The third problem is that no one has made it clear how banks should do this.

The fourth problem is that every bank has then decided its own way of doing this and not trained their staff well.

The fifth problem is that this hodge podge of commercial regulation has created enormous confusion.  For example, one Canadian banker stated that nothing had changed. He could not understand why funds were being delayed.  Another Canadian banker told me that Latin America was on a prohibited list and funds could not be wired to Ecuador.

Probably what this means is that one Canadian bank wires money to Latin America all the time.  Another may have had a problem and will not.

This appears to be a “catch as catch can” situation and whether your money flows easily depends on what combination of banks you have chosen and which employees within those banks handle your transaction.

Delays add freezing of funds and can take place for international or even local transactions for a variety of reasons.

For example, one reader sent this note after the last message about this problem:

“How frustratingly typical!  I opened a basic stock trading account with an
online broker as I wasn’t 100% happy with my existing one. Today two days later they put a block on my new account, and sent me an email about there being a ‘negative public record’ on me.

“It turns out that some other dude with the same name as me, nine years ago, was indicted on charges of laundering money and other wild and roguish things.

“Now let’s remember that the word ‘indicted’ doesn’t actually mean ‘convicted’- just formally charged.  It appears that even being indicted (ACCUSED) of something is enough for this provision to kick-in.

“Let’s be clear here that this is just someone with the same name as me who nine years back in the same state was CHARGED with something. I say ‘same state’ although I did not even visit this state where I live now until three years after the indictment.

“It took me weeks to regain access to my account. Lucky my name wasn’t James Smith which is the most common combination of first and last names in the USA”


Since having my problem in Ecuador, my attorney there wrote the following:

“I just talked to my bank officer.  When the amount is higher than $50,000 it is necessary to justify the origin of the funds.  To do this the bank requires an official letter from your bank stating that the amount you are wiring has been deducted from your account.  You can scan this letter and email it to me.

“A second option is to just email me a scanned copy of your account report where it is shown that the amount has been wired from this account.  Of course,  I feel this is an invasion to your privacy, so I suggest to go for the first option.

“Another way to do it is to transfer the money in separate wires (different dates as well) of lower amounts than $50,000.”

So here is what I am doing.  When I am about to make a transfer, first if it is reasonable send less than $50,000. For example right now I am making a
$76,000 condo payment.

I first informed my sending banker what the wire is for.  I outlined the entire transaction and why I am sending the way I am.

Clear communication in advance is my plan.

Second, I informed my attorney and asked her to contact her banker and let him know everything in advance and make sure this is all okay…to ask if he wants anything else in advance.

When I received the okay reply, I wired $35,000. Once my attorney has confirmed receipt of these funds, I’ll wire the next $36,000.

I’ll let you know how this goes.

Until then, let me read your horror stories on transferring funds.  Better still let me know your solutions.


See dates for our Ecuador courses and tours:

Coastal Real Estate Tour

Here is our last tour group at this Ecuador beach hotel for lunch.


Here they are dining in the ocean breeze.


Maybe tme for a snooze on the beach after in the hotel hamocks?


Nope we gotta move on and view Ecuador beach property for sale on this beach.

Super Thinking + Spanish Course

Imbabura Real Estate Tour

On the Imbabura tour we often dine for lunch on this lake.

Gary Scott

Where these Ecuador Lake lots are for sale.


Ecuador Shaman Mingo Tour

Ecuador Import Export Course

See discounts for attending more than one course.

Make Better Decisions

We are also pleased to announce that we will host a weekend workshop
conducted by our business intuitive, Susan Stanton Rotman.

The course is entitled,  “Escaping the Tryanny of Reason: Intuitive Development for Practical and Business Decision Making”

This seminar will introduce you to working with your own intuition to develop greater insight, creativity, and more informed decision-making and problem solving skills, all important elements for greater success. We will examine intuition in the business context, the use of intuitive process as a complement to rational decision-making, and the integration of intuitive knowing with analytical thought.

Susan will present the basic concepts of intuitive knowing and its development, including how to access your own intuition, and skill building to evaluate, process, trust and apply your information. She will help you explore the experience of intuition and its forms, including exercises to develop sensitivity and to practice using intuition as a navigational tool.

Merri and I have found that escaping the tyranny of reason helps us greatly when faced with questions that cannot be humanly answered.

Merri and I have several weapons in our information processing armory. One of the great assets is Susan, a professional business intuitive.

She consults with businesses and individuals using both her clairvoyance and other psychic abilities combined with her rational skills to help people and businesses with decision making and navigation.  She consults with clients from around the world.

Susan does not really like the word psychic (nor do Merri or I) as a lot of the information she comes up with does not just pop out of the air. She has a strong educational, legal and business background. Susan originally trained as a corporate attorney and mediator.

Susan is a Phi Beta Kappa graduate of Georgetown University, having received a Bachelor of Science in Foreign Service in 1977, cum laude, and graduated from Georgetown University Law Center in 1981.

She practiced corporate law for many years and has extensive experience representing both individual and corporate clients.

She also understands business from the entrepreneurial side—she owned her own retail art-jewelry business and is an expert in pearls.

Susan has a broad background in esoteric and metaphysical studies, spirituality, and personal, business, and family development practices.

This course will be conducted Friday, Saturday and Sunday  August 15, 16 and 17 2008 at our Blue Ridge Farm.  All meals and accommodations ARE included.

We are pleased that Susan will be with us. She will present two days of group instruction and workshop plus will provide individual consultations after the seminar concludes (a consultation is included as part of the course).  Individual consultations may be in person on August 17 or by telephone at a later date.

To enroll click here.