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DarkestLight

Do banks in China require transfer proof letters of money is transferred from one company account to another?

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DarkestLight

If you transfer a huge amount of money from the exchange company in your home country to the company account in China, does that mean that the Chinese company receiving the amount needs to present a transfer proof letter to the bank in order to release the amount into their account? Also, if the letter is required, what is the procedure of having it issued?

A friend of mine is having trouble and the exchange company that he used to transfer the amount refuses to issue the letter. They say that the receipt they gave him was the transfer proof. And that he needs nothing else. (Not that they will give it to him anyway). He used the exchange company so he could send the amount in dollars.

Any help is welcome.

 

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889

Banks even in China are becoming more demanding in light of the worldwide campaign against money laundering. I suspect but do not know that the bank wants to see underlying documents explaining the reason for the transfer, such as an invoice for a sale of goods.

 

That he used an exchange company complicates the issue a great deal, since the transfer did not come direct from your friend's bank account but from a third party's bank account. The Chinese bank wants to know who's actually behind the transfer and the reason for the transfer.

 

It's possible the bank will not be satisfied, of course, and the transfer reversed.

 

When you are transferring huge sums, and sometimes not too huge sums, internationally these days, you best do the transfer directly between the bank accounts of the principals without intermediaries and have proper documentation at hand supporting the reason for the transfer.

 

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DarkestLight
15 minutes ago, 889 said:

 

It's possible the bank will not be satisfied, of course, and the transfer reversed.

Reversed to whom? To the exchange company? Will be be able to collect his amount?

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889

If the Chinese bank does not accept the transfer, it would go back to the bank account of the exchange company. Then your friend will have to deal with the exchange company to get his funds returned.

 

As I said, it simply is not wise to use a non-bank intermediary when transferring "a huge amount" internationally. If something goes wrong it can be a hassle to unravel.

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roddy

And really, the Chinese company should know what's needed - it shouldn't be your (or your friends) job. Assuming this is tuition fees, perhaps an admission letter / proof of student visa would work - but the only people that really know is the Chinese bank, and you can't ask them.

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