Limits to International Money Transfers

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The widespread availability and ease of use make international money transfers a large part of how money moves around in the global economy. Government regulations are put in place to counter the illegal use of these services by criminal parties, from small-time crooks to organized crime entities, so limits and rules to how much money and how it can be sent or received are in place to protect all parties involved. Money transfer agents also have policies in place which set limits on how the service operates so that the safety and security of their users and their money can be guaranteed. Some of these security policies and limits that are in place include:

1. Verified I.D

All money transfer parties need to verify their identity in one or another by having a valid account that can be verified.

This regulation is in place so that fraud and theft can be prevented against by the service agent of the international money transfer.

2. Notification to government of large transactions

In the U.S, the government has put regulations in place, which sets a limit on how much money can be sent via international money transfer. The current limit is set at $10,000 before the government must by law be notified of the amount and names of the parties to the transfer. Criminal organizations will try to use the service of an international money transfer to move cash across borders in an effort to launder cash or hide it off shore. Any attempt to avoid this rule by splitting a large amount into several smaller transfers is also illegal.

3. Limits by the Bank/Transfer Agent

Individual companies may have policies in place which limit the availability of the service without an account upgrade or set a proxy limit by charging large fees. Limits are also placed on the amount in some cases which can be sent to different destinations by banks or money transfer companies.

4. Suspicious Movements of Money and Disclosures of Details

Government regulations mean close scrutiny of international money transfers, and though rules and limits might not be broken in any particular way, any suspicious activity will be flagged to alert authorities. Limits are placed on senders and receivers so that money transfer services can provide the government with necessary information such as name, social security number, and account provider in cases such as this. Suspicious money transfer activities across borders can be traced and tracked to further help in preventing illegal activities by criminals operating in other jurisdictions.

International money transfers are relied upon throughout the world and are an important part of the economy. With large sums of money being exchanged all the time, safety and integrity in this field are of the utmost importance. Rules and regulations put in place by both governments and individual agencies go a long way in achieving this goal.