Moving money.
Sep 19th 2007, 1:35 am
#16
SUPER MODERATOR
Joined: Dec 2005
Posts: 88,020
Re: Moving money.
This $10,000 myth comes up a lot.
There is nothing illegal about having > $10,000 come into the US in a wire or even a cashier's check from a bank in the UK to a bank in the US.
If you bring in more than $10,000 IN CASH--i.e. a big wad of bills, stuffed in envelopes or mattresses or whatever, then the business (i.e. sometimes a bank) is often required to obtain a form that is filed with the IRS for >$10,000 cash transactions. This is designed to prevent BMW dealers from selling cars to drug dealers for cash (really, that's pretty much why the law was written). Note: It is not illegal to bring in > $10,000, it just has to be reported. If there is no US tax owed on the money, then really the only thing you need to be worried about is a slight violation of your privacy rights.
http://en.wikipedia.org/wiki/Bank_Secrecy_Act
HOWEVER, breaking up a large transaction into many smaller ones specifically to avoid the reporting requirement IS A CRIME! (yes, you can commit a crime trying to avoid something that is not a crime). It is called "structuring" and is illegal (though there have been some cases both ways).
As for the original question, first--don't use paypal, unless you want to pay 2.9% off the top as a fee. Just send a wire from your UK bank to the US one. If the rate blows (as it often does) than consider XE trade.
If you have more questions, contact your US bank and ask to talk to someone in their foreign currency department or their wire room, or ask to speak to someone in their legal department for more information.
There is nothing illegal about having > $10,000 come into the US in a wire or even a cashier's check from a bank in the UK to a bank in the US.
If you bring in more than $10,000 IN CASH--i.e. a big wad of bills, stuffed in envelopes or mattresses or whatever, then the business (i.e. sometimes a bank) is often required to obtain a form that is filed with the IRS for >$10,000 cash transactions. This is designed to prevent BMW dealers from selling cars to drug dealers for cash (really, that's pretty much why the law was written). Note: It is not illegal to bring in > $10,000, it just has to be reported. If there is no US tax owed on the money, then really the only thing you need to be worried about is a slight violation of your privacy rights.
http://en.wikipedia.org/wiki/Bank_Secrecy_Act
HOWEVER, breaking up a large transaction into many smaller ones specifically to avoid the reporting requirement IS A CRIME! (yes, you can commit a crime trying to avoid something that is not a crime). It is called "structuring" and is illegal (though there have been some cases both ways).
As for the original question, first--don't use paypal, unless you want to pay 2.9% off the top as a fee. Just send a wire from your UK bank to the US one. If the rate blows (as it often does) than consider XE trade.
If you have more questions, contact your US bank and ask to talk to someone in their foreign currency department or their wire room, or ask to speak to someone in their legal department for more information.
Sep 19th 2007, 1:43 am
#17
MODERATOR
Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,214
Re: Moving money.
Yes, good point. Bringing in > $10,000 in cash and those types of checks also has to be declared at Customs. Again, it's a cash thing.
Sep 19th 2007, 1:39 pm
#18
And YOU'RE paying for it!
Joined: May 2007
Location: kipper tie?
Posts: 2,328
Sep 20th 2007, 1:12 am
#19
BE Forum Addict
Joined: Aug 2007
Location: Maine
Posts: 2,043
Re: Moving money.
One thing to be aware of is that when you come to buy a house in the US you will need to take out a mortgage. They may well want to see information about the money you have had from the UK house sale - the date it was sold, date the money was transferred, etc.
We are about to take out a mortgage and our provider wants from us...
2 months bank statements
verification of the completion of sale of UK property plus verification of receipt of proceeds in US bank and conversion rates
letter from UK mortgage holder to verify payment history for last 12 months
landlord reference for time spent in the US
evidence of residency status
social security numbers
4 credit references to verify 12 months satisfactory payment history in the UK - utility bills, phone compnay, car insurance, any other credit provider
tax returns for last 2 years
homeowners insurance provider details
drivers licence copy
Some of this is because we have no credit history so far - we have only been here a few months. We could've waited a year and built up credit but we wanted to buy now so we are jumping through all the hoops to get a mortgage.
I plan to bring over the money with InterchangeFX or similar. I already sent over £20k, got an excellent exchange rate, and they did it all in one day. My bank had offered a similar rate but it was going to take them four days to wire the money.
We are about to take out a mortgage and our provider wants from us...
2 months bank statements
verification of the completion of sale of UK property plus verification of receipt of proceeds in US bank and conversion rates
letter from UK mortgage holder to verify payment history for last 12 months
landlord reference for time spent in the US
evidence of residency status
social security numbers
4 credit references to verify 12 months satisfactory payment history in the UK - utility bills, phone compnay, car insurance, any other credit provider
tax returns for last 2 years
homeowners insurance provider details
drivers licence copy
Some of this is because we have no credit history so far - we have only been here a few months. We could've waited a year and built up credit but we wanted to buy now so we are jumping through all the hoops to get a mortgage.
I plan to bring over the money with InterchangeFX or similar. I already sent over £20k, got an excellent exchange rate, and they did it all in one day. My bank had offered a similar rate but it was going to take them four days to wire the money.
Sep 20th 2007, 1:26 am
#20
SUPER MODERATOR
Joined: Dec 2005
Posts: 88,020
Re: Moving money.
Why would they need to know this...it's none of their business? I have never heard of it before.
Sep 20th 2007, 2:02 am
#21
Just Joined
Joined: Sep 2007
Posts: 7
Re: Moving money.
My U.S. bank will accept a sterling check but charges 1% for the currency conversion. My U.K. bank will create a U.S.dollar check for 18 pounds. I imagine different banks have different policies. I'm also not sure which bank would use the more favorable exchange rate, so its pretty hard to know which is the best deal.
Sep 21st 2007, 8:04 pm
#22
And YOU'RE paying for it!
Joined: May 2007
Location: kipper tie?
Posts: 2,328
Re: Moving money.
BTW, just on the subject of trying to be clever by transferring sums slightly less than $10,000: http://online.wsj.com/article/SB1190...hpp_us_pageone
Sep 22nd 2007, 10:12 am
#23
BE Forum Addict
Joined: Feb 2006
Posts: 4,820
Re: Moving money.
NO ????? ............. havn't seen any better sugestion than mine yet 
Sep 22nd 2007, 2:17 pm
#25
Queen of my house
Joined: Aug 2007
Location: Ohio
Posts: 5,043
Re: Moving money.
I agree. Hubby had his UK bank wire his money in one lump sum into our joint account here. We only paid his bank 20 pounds and our bank $15.
Sep 22nd 2007, 2:27 pm
#26
Queen of my house
Joined: Aug 2007
Location: Ohio
Posts: 5,043
Re: Moving money.
One thing to be aware of is that when you come to buy a house in the US you will need to take out a mortgage. They may well want to see information about the money you have had from the UK house sale - the date it was sold, date the money was transferred, etc.
We are about to take out a mortgage and our provider wants from us...
2 months bank statements
verification of the completion of sale of UK property plus verification of receipt of proceeds in US bank and conversion rates
letter from UK mortgage holder to verify payment history for last 12 months
landlord reference for time spent in the US
evidence of residency status
social security numbers
4 credit references to verify 12 months satisfactory payment history in the UK - utility bills, phone compnay, car insurance, any other credit provider
tax returns for last 2 years
homeowners insurance provider details
drivers licence copy
Some of this is because we have no credit history so far - we have only been here a few months. We could've waited a year and built up credit but we wanted to buy now so we are jumping through all the hoops to get a mortgage.
I plan to bring over the money with InterchangeFX or similar. I already sent over £20k, got an excellent exchange rate, and they did it all in one day. My bank had offered a similar rate but it was going to take them four days to wire the money.
We are about to take out a mortgage and our provider wants from us...
2 months bank statements
verification of the completion of sale of UK property plus verification of receipt of proceeds in US bank and conversion rates
letter from UK mortgage holder to verify payment history for last 12 months
landlord reference for time spent in the US
evidence of residency status
social security numbers
4 credit references to verify 12 months satisfactory payment history in the UK - utility bills, phone compnay, car insurance, any other credit provider
tax returns for last 2 years
homeowners insurance provider details
drivers licence copy
Some of this is because we have no credit history so far - we have only been here a few months. We could've waited a year and built up credit but we wanted to buy now so we are jumping through all the hoops to get a mortgage.
I plan to bring over the money with InterchangeFX or similar. I already sent over £20k, got an excellent exchange rate, and they did it all in one day. My bank had offered a similar rate but it was going to take them four days to wire the money.
Most of these items are normal things lending companies ask for in the U.S. I am USC and have bought 5 houses here (4 with ex and one alone). I've never had to come up with a landlord reference because I've never rented...I went straight from parents to house purchase. And I've not needed proof of residency, but everything else you've listed looks normal (at least in Ohio). Instead of credit references, I had to sign an approval for them to do a credit check on me. They just want to make sure you are going to pay your mortgage...they are protecting their investment.
A good loan officer makes all the difference also on how smoothly everything goes. I have used the same person for my last two purchases, and it was almost painless.
Good luck.
