Here are a few reminders on how to handle member requests for receiving international wire transfers:
Let your member know that a SWIFT code, commonly used for international transfers, is not required for your member to receive the funds. Normally, foreign financial institutions have correspondent relationships with large U.S. banks to handle these types of transfers. The U.S. correspondent bank will convert the foreign currency wire to U.S. dollars if necessary, and route the wire transfer into the domestic wire transfer system. Your credit union will receive the transfer just like other domestic wire transfers.
As with any domestic wire transfer, please provide the following instructions for your member to relay to the foreign remitter:
Receiving Financial Institution: System United Corporate Federal Credit Union
Routing Number: 307087399
Beneficiary Financial Institution: [Your Credit Union Name]
Routing Number: [Your Credit Union Routing Number]
Beneficiary Information: [Your Member’s Name and Account Number]
Remember to perform your normal OFAC checks on these incoming wire transfers before posting the entry. Also, check with your BSA Compliance Officer to determine if any additional BSA monitoring or reporting is required.
If you have any additional questions regarding international wire transfers, please contact our Member Services Department.
Counterfeit or altered cashier’s checks and corporate drafts are becoming increasingly common, and have the potential to cause major losses for credit unions. We continue to see this type of fraud activity and the related losses.
As an issuer of cashier’s checks or corporate drafts, your credit union can be targeted by fraudsters who alter legitimate checks or just create high-quality counterfeit checks. If you return these checks as fraudulent within the 24 hour return deadline, the depository bank or the payee will most likely suffer the financial loss. However, if you miss the return deadline, the loss will most likely be suffered by the credit union.
In order to meet the return deadlines, we recommend that credit unions review cashier’s check / corporate draft clearings on a daily basis – comparing check numbers and amounts with your records of issued checks. If it is not practical to review all clearings every day, you might want to consider random checks on a periodic basis – maybe targeting those checks above a specific dollar amount.
You can utilize our Image Connect System to review all your corporate draft and cashier’s check activity. Click here for instructions on how to access corporate draft information and images from the Image Connect System.
If you have questions or concerns, please contact our Member Services Department or your Business Development Officer for assistance.