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If a wire transfer comes to you from another country, and the bank hold the funds for more than 10 business days,

Las Vegas, NV |

can I have access to the funds or some of the funds while they investigate the origin of the funds? the funds will be coming from Nigeria.

Attorney Answers 4

  1. Best answer

    No, you most probably cannot. Banks have to comply with various regulations among which Anti-Money Laundering, the Anti-Terrorist Financing Act and the Bank Secrecy Act. Banks are required to keep record of international financial transactions and check them closely. Your bank is required to keep record and/or reconstruct your financial transactions.

    This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the undisclosed individual asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of New York. Responses are based solely on New York Law unless stated otherwise. Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

  2. I agree with Mr. Melchionna and would add that wire transfers from Nigeria are subject to close anti-money laundering scrutiny due to the large number of scams that have historically been traced to Nigeria. If you consult the Financial Action Task Force's website you will see that Nigeria appears on their high risk and non-cooperative jurisdictions.

    Due to the lack of complete information provided in relation to the situation discussed, any answer given is general in nature and should not be construed as or relied upon as legal advice. A written legal services agreement must be signed by both the attorney and the client to establish an attorney-client relationship.

  3. this is a fraud! report it to law enforcement.

  4. The following types of deposits must be made available on the first business day following the banking day of deposit ("next-day availability"):

    1. Cash deposited in person.

    2. Electronic payments received by the institution for deposit in an account. An electronic payment is considered received (deposited) when the institution has received both payment in collected funds and information on the account and the amount to be credited. (Under other rules, funds for most electronic deposits are made available on the day of deposit.)

    3. U.S. Treasury checks deposited in an account held by a payee of the check. Unlike deposit types listed in four through eight below, which pertain to deposits made in person, Treasury checks deposited at an ATM owned by your institution (a "proprietary" ATM) must be accorded next-day availability.

    4. U.S. Postal Service money orders deposited in person into an account held by a payee of the check.

    5. Federal Reserve Bank and Federal Home Loan Bank checks deposited in person into an account held by a payee of the check.

    6. State or local government checks deposited in person into an account held by a payee of the check, if the institution is in the same state as the payer of the check. (Note: If the customer desires next-day availability of funds from these checks, the bank may require use of a special deposit slip.)

    7. Cashier's, certified, or teller's checks deposited in person into an account held by a payee of the check. (Note: If the customer desires next-day availability of funds from these checks, the bank may require use of a special deposit slip.)

    8. Checks drawn on an account held by the institution ("on-us checks") deposited in person to a bank employee or an on-premises ATM or night depository, if the branch or branches involved are in the same state or check-processing region.

    9. Deposits that include some checks of types not listed above. The first $100 (or the amount of the deposit if it is less than $100) of non-"next-day" checks must be made available the next day.

    Exceptions: When deposits of types one, four, five, six and seven are not made in person (for example, when they are made at an ATM), the funds must be made available by the second business day. Deposits, cash or check, made at an ATM that the bank does not own (a "nonproprietary" ATM) must be made available by the fifth business day.

    Source: The Federal Reserve Board's Guide for Financial Institutions Compliance with Regulation CC

    Financial institutions are allowed to treat differently new customers, customers with a prior history of overdrawing their account, checks deposited during emergency conditions and checks that the bank is doubtful about their ability to collect.

    Regulation CC and The Expedited Funds Availability Act of 1987 provide the standards for financial institutions in this area.

    EFAA provides a standard of two-thirds as a rule-making guide for the Federal Reserve Board. This means that the hold period for nonlocal checks should be the approximate length of time when two-thirds of returned checks are returned.

    This means that banks should only be at risk for one-third of checks returned to them, a standard approved by Congress in the EFAA. Under Regulation CC, financial institutions are required to post their funds-availability policy and provide a notice of funds availability on the front of all preprinted deposit slipsCommercial banks, savings banks, savings and loans and credit unions all have a funds-availability policy that determines when a deposit will be available for your use.

    The key to funds availability is the determination whether the deposited check is considered local or nonlocal. With certain exceptions, funds deposited as nonlocal checks have to be available by the fifth business day following the day of deposit.

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