Bank Wire Telegraphic Transfer

Week 13.1 Bank Wire Telegraphic Transfer

Some of the consideration in bank wire includes

a)      The exchange rate offered

b)      Special discount for foreign exchange rate offered for transferring big amount of money.

c)      Bank Wire. Telegraphic Transfer charges. Varies from RM10, RM25 to RM30.

d)     Time spent to do the transfer (try to avoid month end).Some branches in certain bank are famous for traffic jam especially month end.

e)      Routing charges. How much less the receiver will get? That varies from bank to bank depending on how the routing is done.  Normally when you transfer fund oversea, the fund may not go directly to the receiver bank account. It may go through 1-2 intermediate banks before it reaches the final destination bank. For each intermediate bank, there are applicable routing charges. For routing to USA, on average you will lose USD15.00 for public bank and CIMB bank, for Maybank it about USD25 to USD40 dollar depending on the bank wire amount. Well, if you TT to USA or some part of the world to buy silver, your money may go through JP Morgan or HSBC first (the famous silver short).

f)       Certain bank like Standard Chartered, the bank wire must be deducted directly from the bank account because in case the bank wire failed, the balance minus the forex loss + routing fee will be refunded directly into the account.

g)      Kepo bank staff. Wow! You selalu beli apa ni. How professional is the bank staff in keeping your information private?

h)      Correctness of bank wire information entered into the system. Sometimes, you face with not so well-trained staff, there may be possibility that your bank wire is wrongly entered especially if there are specific routing instruction to follow. Normally, the bank wire information is double-checked by two staff before the TT is done.

i)        Prior to 1^st Oct 2007, a bank wire of RM50,000.00 is required to fill up a Borang P. I believe the amount was raised to RM200,001. The Borang P will go straight to Bank Negara for forex monitoring within 7 business day from the date of transaction. For amount RM10,000 to RM200,000, a consolidated bulk payment reports will be sent to Bank Negara within 14 calendar days after end of month.  For large amount, try to break up the transaction in multiples of RM200,000. Don’t get conned, OK some Tan Sri ABC used your name to do the bank wire RM1 million to Papua New Guinea for an ang pau of RM1000.00, then next 2 weeks, someone from Bank Negara or income tax will pay you a visit.

j)        Lastly, just gives them just enough info to complete the bank wire process. Try not to give them the invoice as it involved pricing and costing. Surely you don’t want the bank teller to know the cost of your product and over the cup of coffee they spread the info like wild-fire.