Dear Richard and friends

with the current financial/credit crisis at hand I have the following questions :


1. Will it be hard to recieve large sums of money from Top rated European banks ( Large meaning 15 million dollars ) the funds will be going to a JP Morgan chase account ( funds are going to a leagally registered business . )



2. upon reciept of the funds how long will it be before the client is able to use the funds .





Thanks

It all depends on the following factors:

1. How long has the business account has been with Chase bank?

2. How long has the company been in business and what is the nature of the business?

3. What is the average deposit look like (historical deposits)?

4. Can the company justify a receipt in the amount of $15Mn USD into their Chase bank account?

If the company just opened and it does not have a history of "movement" of funds on this level (for example, the average movement is between $5,000 and $20,000 USD) then, how can they justify an incoming wire transfer in such a large amount?

If the company has been in business for more than 5 years and it has had the account with Chase for that long and the movement of funds show an steady monthly increase, justifying this amount; will be no problem. Talk to your personal banker and bring this incoming transfer to his / her attention. Perhaps a documented explanation may help you make your case when you meet with your banker.

Thanks trb I appreciate the advice , here is the deal ( I am unable to put specific names on the board )

the company is a 6 year old finance company


they have not had any significant account/or consistent activity within their business accounts .



the account at Jp Morgan Chase is less than a year old .



Tell me if this makes sense .

perhaps the client should use their attorney trust account as a paymaster . this way it will smooth the way for the client to recieve the funds ,


in any event the client is going to recieve these funds wheter the bank likes it or not .



What say you !!!!!!!!!!

do not do this direct, since the account is relatively new and has no history you need to trickle it in, do not use a trustee account because it will pass through the origin of funds and the master transaction number or blank it out immediately; also it depends from where in Europe the money comes. Depends for what you want to use the money as well as tax issues. If you do it, expect a red flag, an automatic SAR (the bank issues them just in case to cover their own exposure with authorities) and a lot of questions before you can use the money, the receipt of the funds can be instantaneous but could also be refused. A successful wire is almost immediate.

It all depends, if Europe includes any country like Switzerland, Monaco, Lichtenstein, Andorra etc or the owner of the originating account is registered there, expect trouble, you also have not said from which background is it coming, if this is a commission etc expect that none of the normal parties will substitute the tracing to the main transaction which may raise questions. If such is the case you need to replace the the origin data, which means trickling and substituting will be included in bank charges and structure charges of a total of 2.5% of the wire amount.

Richard the funds are coming out of the llb bank in luxemburg, it will be about 15 million from a legitimate transaction , the funds will be used for business purposes and it is a commission . how does this client move forward .

look at your email

if you have trouble opening the email

ok thanks I will go take a look right now

Richard thanks for the advise , the client has opened or will be opening an account with the Liechtensteinische Landesbank AG and feed at least 100 to 200k per month to the U.S account , all tax issued will handled properly , the client will seek counsel from you in the future .

my dear friend, you may go to Google News and put the banks name in it and you will find that after the scandal in Germany and back up of client data with the German IRS (which spread via the information system to all partners of the German IRS with other governments, including the US in the monthly data back up) all money movements from LLB are monitored and there is an information system set up. If he really wants to do in by himself choose a different bank or at least open the account under a corporate id.

anyway, you have my email.

Richard everything is and will be done under the corporation name, the client would not dare do this under his personal name ,.. As for the tax issue the client has nothing to hide and will give full disclosure, the client is not trying to avoid or evade taxes. besides he is running a legitimate business . I look forward to your wise counsel .