Sending Large Sum $ out of NZ - Implications ?

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12-02-2020, 05:53 PM
SBQ

Sending Large Sum $ out of NZ - Implications ?

I'm compelled to sending $ overseas via wire TT but I received an interesting reply from my bank manager:

"The low interest rate environment is tough for people with money and there does not appear to be any end of these low interest rates any time soon - but in saying that, there are no guarantees either. Seeking higher returns will mean accepting greater risks - as you are aware. We do have an Investment/Wealth area - would you like to meet with them to discuss options? I would be happy to make an appointment for you - just let me know

A transaction of NZD$xxx,xxx. leaving NZ (that is what is in the account presently) will mean that it is subject to scrutiny and to this end, you would need to talk with your accountant."

My initial contact with him was to get a better NZD to USD exchange rate conversion for the day. I am aware there are other options such as FX brokers etc. but would prefer to stick with the bank to do it all (convert and wire TT) as it's a huge hassle to open new accounts with a different firm when it's only going to be a "ONE OFF" transaction. Again hassles brought on by AML, CRA, etc. requirements.

Has anyone else had queries when sending large sums abroad? Particularly by IRD if it will trigger an audit? These are after-tax funds that matured from a term deposit and quite frankly, it should seem fit as I please what to do with those funds? But reading the FMA, it seems all the banks have to cross the 'T's and dot the 'I's as they can't afford to make a mistake so it may be of no surprise.

I'm awaiting a reply from my accountant.

To avoid further questions, I would be gifting these funds to my father who holds a US based broker account and is a non-resident of NZ.
12-02-2020, 07:21 PM
fish

Quote:

Originally Posted by SBQ

I'm compelled to sending $ overseas via wire TT but I received an interesting reply from my bank manager:

"The low interest rate environment is tough for people with money and there does not appear to be any end of these low interest rates any time soon - but in saying that, there are no guarantees either. Seeking higher returns will mean accepting greater risks - as you are aware. We do have an Investment/Wealth area - would you like to meet with them to discuss options? I would be happy to make an appointment for you - just let me know

A transaction of NZD$xxx,xxx. leaving NZ (that is what is in the account presently) will mean that it is subject to scrutiny and to this end, you would need to talk with your accountant."

My initial contact with him was to get a better NZD to USD exchange rate conversion for the day. I am aware there are other options such as FX brokers etc. but would prefer to stick with the bank to do it all (convert and wire TT) as it's a huge hassle to open new accounts with a different firm when it's only going to be a "ONE OFF" transaction. Again hassles brought on by AML, CRA, etc. requirements.

Has anyone else had queries when sending large sums abroad? Particularly by IRD if it will trigger an audit? These are after-tax funds that matured from a term deposit and quite frankly, it should seem fit as I please what to do with those funds? But reading the FMA, it seems all the banks have to cross the 'T's and dot the 'I's as they can't afford to make a mistake so it may be of no surprise.

I'm awaiting a reply from my accountant.

To avoid further questions, I would be gifting these funds to my father who holds a US based broker account and is a non-resident of NZ.

I have never had IRD problems in the past-I sent a 6 figure sum last August.
Do not know if this has changed.
I do know do not do it through your local bank if you want a good rate.
I normally get ASB securities to put me directly in touch with the dealer-the rate varies by the minute and then its up to you to accept or not .
12-02-2020, 07:50 PM
stoploss

I would do it via an FX transfer company much better rate & credit ratings very high..AML is easy they can ID you off your drivers license.
PM me if you need an introduction or any more details.
12-02-2020, 08:47 PM
SBQ

Quote:

Originally Posted by fish

I have never had IRD problems in the past-I sent a 6 figure sum last August.
Do not know if this has changed.
I do know do not do it through your local bank if you want a good rate.
I normally get ASB securities to put me directly in touch with the dealer-the rate varies by the minute and then its up to you to accept or not .

Yes the major banks have large spread on the exchange rate. Well in excess of 2% from the market rate. I will need to ask if my BNZ manager can get me in touch with their 'International Team' to get me a better rate. However, uncertain how readily accessible this would be. I'm certain most bank teller workers would be unaware of this feature.

More to come so stay tuned!
12-02-2020, 08:49 PM
SBQ

Quote:

Originally Posted by stoploss

I would do it via an FX transfer company much better rate & credit ratings very high..AML is easy they can ID you off your drivers license.
PM me if you need an introduction or any more details.

The issue with the FX transfer company is the hassles with opening up an account. It's not so 'straight forward' as before and they require a lot of information to setup an account. But since we're dealing with a large amount, it may be warranted - keep in mind, this is a ONE-OFF transaction so i'm not sure how the FX company would regard this?

Message me who - I would prefer someone in Christchurch where I am. If I recall, this AML requires to be "in person" to validate the genuine status that the person does exist.
12-02-2020, 09:06 PM
Paddles

Quote:

Originally Posted by SBQ

I'm compelled to sending $ overseas via wire TT but I received an interesting reply from my bank manager:

"The low interest rate environment is tough for people with money and there does not appear to be any end of these low interest rates any time soon - but in saying that, there are no guarantees either. Seeking higher returns will mean accepting greater risks - as you are aware. We do have an Investment/Wealth area - would you like to meet with them to discuss options? I would be happy to make an appointment for you - just let me know

A transaction of NZD$xxx,xxx. leaving NZ (that is what is in the account presently) will mean that it is subject to scrutiny and to this end, you would need to talk with your accountant."

My initial contact with him was to get a better NZD to USD exchange rate conversion for the day. I am aware there are other options such as FX brokers etc. but would prefer to stick with the bank to do it all (convert and wire TT) as it's a huge hassle to open new accounts with a different firm when it's only going to be a "ONE OFF" transaction. Again hassles brought on by AML, CRA, etc. requirements.

Has anyone else had queries when sending large sums abroad? Particularly by IRD if it will trigger an audit? These are after-tax funds that matured from a term deposit and quite frankly, it should seem fit as I please what to do with those funds? But reading the FMA, it seems all the banks have to cross the 'T's and dot the 'I's as they can't afford to make a mistake so it may be of no surprise.

I'm awaiting a reply from my accountant.

To avoid further questions, I would be gifting these funds to my father who holds a US based broker account and is a non-resident of NZ.

This is the reason (partly) that Satoshi created Bitcoin. The hoops you have to jump through to manage your own money, that has likely already been taxed generously, is boarding on criminal.
12-02-2020, 09:45 PM
SBQ

Quote:

Originally Posted by Paddles

This is the reason (partly) that Satoshi created Bitcoin. The hoops you have to jump through to manage your own money, that has likely already been taxed generously, is boarding on criminal.

Well cryptocurrencies in my opinion is gambling so not gonna touch it. Besides, sooner or later you'll need to realise it in fiat currency and to do that, it has to pass through into a banking system. Globally, the banks are riddled with regulations and tax so when a whopping sum appears in the account out of no where... the tax dept is gonna ask how it came about and will tax it accordingly.
13-02-2020, 12:01 PM
SBQ

OK good news. Came back from BNZ and was very impressed with the exchange rate. At the time the open market rate was 0.6464 and the dealer rate he offered (as it changes minute by minute) was 0.6425. A difference of 0.006033 or 0.6% as he mentioned, moving $ around has become a lot more difficult for the banks with lots of regulations ; 'it's the 0.1% that wrecks it for the 99.9% of those who are legit and play by the rules'.

Thanks for your reply stoploss, however I could not resist the great rate BNZ gave me.
13-02-2020, 12:30 PM
Paddles

Quote:

Originally Posted by SBQ

Besides, sooner or later you'll need to realise it in fiat currency and to do that, it has to pass through into a banking system.

That's not necessarily true.

It is possible to survive using crypto only. In fact crypto will take you further than anyone single fiat currency will.
13-02-2020, 02:33 PM
SBQ

Quote:

Originally Posted by Paddles

That's not necessarily true.

It is possible to survive using crypto only. In fact crypto will take you further than anyone single fiat currency will.

well I wouldn't want to make it a challenge. At the moment i'm not seeing places like Countdown and PaK N Save accepting BTC payments. Likewise trying to buy a car in NZ or paying your house bills or even buying a new house. The AML laws are very clear and strict where the $ flows.
13-02-2020, 04:09 PM
Paddles

Quote:

Originally Posted by SBQ

well I wouldn't want to make it a challenge. At the moment i'm not seeing places like Countdown and PaK N Save accepting BTC payments. Likewise trying to buy a car in NZ or paying your house bills or even buying a new house. The AML laws are very clear and strict where the $ flows.

Sorry, I know its off topic, but you can do all of that with crypto.

Buying a house could be problematic but not impossible. Ill go one step further, when you buy a house in the future, it will be done on a blockchain.
13-02-2020, 06:47 PM
peat

Quote:

Originally Posted by Paddles

, when you buy a house in the future, it will be done on a blockchain.

I'm not having my Title Deed stored only as 1's and 0's thank you. :p
13-02-2020, 06:48 PM
iceman

Quote:

Originally Posted by SBQ

Yes the major banks have large spread on the exchange rate. Well in excess of 2% from the market rate. I will need to ask if my BNZ manager can get me in touch with their 'International Team' to get me a better rate. However, uncertain how readily accessible this would be. I'm certain most bank teller workers would be unaware of this feature.

More to come so stay tuned!

They should do this for you to get a better rate. I recently did this with ANZ and they got me in touch with their International team. I did however end up going through OFX (I have an account with them) as ANZ could not quite match them. But you are right about the hassle of setting up such an account for one transaction is very cumbersome and time consuming.
13-02-2020, 07:16 PM
SBQ

Quote:

Originally Posted by iceman

They should do this for you to get a better rate. I recently did this with ANZ and they got me in touch with their International team. I did however end up going through OFX (I have an account with them) as ANZ could not quite match them. But you are right about the hassle of setting up such an account for one transaction is very cumbersome and time consuming.

My accountant came back and like my bank manager, moving $ around isn't what it use to be. She quoted that for many of the trust accounts she handles where she has to routinely send funds abroad like in the US, if the amounts are over $1,000, then she is required to file a notice to the NZ Police as part of the AML requirements.

All in all 0.6% spread is a very attractive rate and I would be surprised if other FX brokers could beat it.
13-02-2020, 10:18 PM
Timesurfer

I have a Nigerian prince contact who would swap large sums of money with you ... at least that is what his email said.
13-02-2020, 10:59 PM
iceman

Quote:

Originally Posted by SBQ

My accountant came back and like my bank manager, moving $ around isn't what it use to be. She quoted that for many of the trust accounts she handles where she has to routinely send funds abroad like in the US, if the amounts are over $1,000, then she is required to file a notice to the NZ Police as part of the AML requirements.

All in all 0.6% spread is a very attractive rate and I would be surprised if other FX brokers could beat it.

I send most months a modest amount from a property investment in a Nordic country, back to NZ. Can set the transfer up with online banking in that country but then need to fill in a form that I send to my bank contact there and she forwards it to the Reserve Bank in that country. It sure is getting very cumbersome to send money internationally and nearly impossible to open new accounts with new institutions. All in the name of stopping terrorist funding and money laundering. I wonder if they actually achieve a reduction in such transfers or only make it more difficult for the rest of us !
14-02-2020, 08:14 AM
SBQ

Quote:

Originally Posted by Timesurfer

I have a Nigerian prince contact who would swap large sums of money with you ... at least that is what his email said.

:lol::lol::lol::lol: same thing when I hear about meeting so and so by unknown acquaintances.

In a similar front, I received an email from IRD saying I got a tax refund but the return email address was:

Inland Revenue - Te Tari Taake <elsway@xtra.co.nz>

"You are eligible to receive a refund of $129.85 NZD.

You have tax returns for period ending 25 Jan 2019, due 25 Feb 2019, now available for refund!

Remember: We tried to send it to you automatically but were unable to do so as we don't have your details on file."

To start, please visit our website below:

https://my3ir.services.ird.govt.nz/2019.overpayments/Refunds.dll?auth/

After completing it, please submit the form on your screen and allow us
from 1 up to 5 business days for processing.
16-02-2020, 02:04 AM
GTM 3442

Quote:

Originally Posted by peat

I'm not having my Title Deed stored only as 1's and 0's thank you. :p

It's been a long time since it was stored as anything else peat. New Zealand's Title Registry migrated online in the last decade of the last century.

However the transactions involved in buying and selling property may very well end up using blockchain.

And why not? After all, it's only a mechanism for recording things that happen out in the "real" world.