BanReservas Put Hold on Account

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philly

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Feb 14, 2003
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Ok so i haven't sent any significant money to the DR in a long time but last time i had no problems but now...

Facts:
Joint account in US $ opened recently at Ban Reservas
300 minimum to open
account is in sister and brother in laws name (both Dominicans)
recently transferred to account 18kUS from US bank account
Money arrived but Ban Reservas refuses to allow access to money until a letter of justification is obtained by my brother and sister in law...

Questions:
Is this legit? Did they just start doing this? Is this b/c they suspect something awry? or is it their policy for all transactions over a specified amount? has anyone else had to go through this? Are there other banks to open US$ accounts in the DR?

Thanks for any information on this...
 
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yanandu

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Jan 23, 2011
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Generally they need to know the source of the funds and the purpose for any sum over about 10k$.
It's a good idea to keep a few years source of money record.

Yanandu
 
Robert

Robert

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philly said:
Ok so i haven't sent any significant money to the DR in a long time but last time i had no problems but now...

Facts:
Joint account in US $ opened recently at Ban Reservas
300 minimum to open
account is in sister and brother in laws name (both Dominicans)
recently transferred to account 18kUS from US bank account
Money arrived but Ban Reservas refuses to allow access to money until a letter of justification is obtained by my brother and sister in law...

Questions:
Is this legit? Did they just start doing this? Is this b/c they suspect something awry? or is it their policy for all transactions over a specified amount? has anyone else had to go through this? Are there other banks to open US$ accounts in the DR?

Thanks for any information on this...
Click to expand...

Yes it's legit and they are required by law to report any transactions over US$10,000 due to money laundering.

You will need to present all the docs they have asked for before they will release your funds.

Next time keep the transactions under US$9,999.
 
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philly

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Feb 14, 2003
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thanks for responding

I don't have a problem with the reporting of it to whomever.

They would only put a hold on it though if the suspect something right? or if they want to give you a hard time? What I am getting at is they don't have to put a hold on the account and require justification? or is that BanReservas Policy now?

i now live in the dr part of the year and can't imagine going through this every time i buy something large....is there a better way then just transferring less then 10k?
 
bob saunders

bob saunders

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philly said:
thanks for responding

I don't have a problem with the reporting of it to whomever.

They would only put a hold on it though if the suspect something right? or if they want to give you a hard time? What I am getting at is they don't have to put a hold on the account and require justification? or is that BanReservas Policy now?

i now live in the dr part of the year and can't imagine going through this every time i buy something large....is there a better way then just transferring less then 10k?
Click to expand...

I transferred 15 K to mt wife's account in BHD, where the manager knows both us quite well. It still took 5 days to clear, even with the proof of origin.
 
Robert

Robert

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philly said:
thanks for responding

I don't have a problem with the reporting of it to whomever.

They would only put a hold on it though if the suspect something right? or if they want to give you a hard time? What I am getting at is they don't have to put a hold on the account and require justification? or is that BanReservas Policy now?

i now live in the dr part of the year and can't imagine going through this every time i buy something large....is there a better way then just transferring less then 10k?
Click to expand...

As I told you in my first response "they are required by law to report any transactions over US$10,000". Regardless of the person sending, background etc.

This is not BanReservas giving you a hard time or their policy, it's required by law and all banks require the same documentation. Until they get that, your accounts are frozen or the funds frozen.

Better way? Make sure you have the required paperwork and your bank is informed ahead of time. If I wanted to transfer US$100,000 and have it clear the same day, no problem. All I need to do is speak to my account rep, inform them ahead of time and provide them with whatever they need. If you know your rep personally, it can be as simple as a phone call.
 
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philly

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what do you have to show for proof of origin? the actual statement from you bank where you initiated the transfer? or paycheck or something? it seems they should know where the origin is?!?

they asked for "justificacion" not sure it that is the same thing you were asked for but essentially we have to get someone else to confirm what the money is going to be spent on...
 
bob saunders

bob saunders

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philly said:
what do you have to show for proof of origin? the actual statement from you bank where you initiated the transfer? or paycheck or something? it seems they should know where the origin is?!?

they asked for "justificacion" not sure it that is the same thing you were asked for but essentially we have to get someone else to confirm what the money is going to be spent on...
Click to expand...

They aren't concerned on what you'll spend the money on, just where it originated. If it's from your bank account a letter from the bank or your bank statement showing where the deposits came from. It's not complicated.
 
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philly

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I hear ya Bob but they didn't ask for where it originated (unless something got lost in the translation :) they asked for a justification of how it will be spent ... they gave my bro in law a form that the 3rd party has to fill out stating what they are selling and for how much etc...

proving where it originated makes more sense to me....asking for proff of how it will be spent doesn't...what if you aren't spending it on anything just...just b/c you transfer money to a bank account doesn't mean you will spend it ever...but it has to come from somewhere...jijijijiji
 
Robert

Robert

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Welcoming to banking 101 in a country that has a very long history of money laundering.

They do not know your sister from the next Dominican, especially as its a new account.
Even more so "if" she has no banking history of transacting in US$ at other banks etc.
That being said, it does not surprise me they are asking for justification of how the funds
will be spent.

Fill out the form, tell the truth and hopefully it will be easier next time around :)
 
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philly

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yeah it isn't that big of a deal just a surprise! just wanted to make sure it wasn't some type of scam and make others aware too....
 
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yanandu

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US regulations are that you must state purpose as well. With some banks even for small sums.
I have to do so on every transaction : e.g. living expense and rent;

Yanandu
 
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mountainannie

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yanandu said:
US regulations are that you must state purpose as well. With some banks even for small sums.
I have to do so on every transaction : e.g. living expense and rent;

Yanandu
Click to expand...

I have never ever heard of this.. was this from foreign transfer of funds?

I know about the 10k limit .. has to be reported to the IRS.. but asking how you are going to spend it sounds ridiculous.

I mean. who is gonna say that they are going down to buy cocaine and ship it out inside hollowed out pumpkins?
 
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AndyGriffith

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bob saunders said:
They aren't concerned on what you'll spend the money on, just where it originated. If it's from your bank account a letter from the bank or your bank statement showing where the deposits came from. It's not complicated.
Click to expand...


I thought an account statement would suffice, but in many instances they want more detailed information such as income tax statement, payment stubs or invoices for the origin of the money. I tried to point out to them that U.S. banks have the same regulations and more so than here in DR, but the rep at the DR bank said it does not matter even though he personally understands the hypocrisy of it all.
 
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belmont

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A point that may have been overlooked. The OP stated that he transferred the money from his account in the US to an account in the DR which is in his sister's and brother-in-law's names. The bank may be determining if there is any Dominican tax on this transaction (For all the bank knows, this may have been a business transfer of funds with ITBIS due.). This was not a simple transfer of funds from the OP's account in the US to his own account in the DR.
 
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rubio_higuey

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philly said:
what do you have to show for proof of origin? the actual statement from you bank where you initiated the transfer? or paycheck or something? it seems they should know where the origin is?!?

they asked for "justificacion" not sure it that is the same thing you were asked for but essentially we have to get someone else to confirm what the money is going to be spent on...
Click to expand...

In the future make your originating bank attach a SWIFT system message that the "Funds are clean and clear, and of non-criminal origin". If your bank knows you well and knows the source of your funds, they should have no problem issuing this statement.

Best to ask BanReservas of what exactly they need as "proof of clean funds". You can also try to get your sending bank send a SWIFT message referencing to the transfer they sent issuing the above-referenced statement. It MIGHT be all the BanReservas would need, because the statement made by the originating bank is a legal statement in international banking. The originating bank would not issue the statement if it is not 100% sure the funds are clean and clear.
 
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AndyGriffith

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rubio_higuey said:
In the future make your originating bank attach a SWIFT system message that the "Funds are clean and clear, and of non-criminal origin". If your bank knows you well and knows the source of your funds, they should have no problem issuing this statement.

Best to ask BanReservas of what exactly they need as "proof of clean funds". You can also try to get your sending bank send a SWIFT message referencing to the transfer they sent issuing the above-referenced statement. It MIGHT be all the BanReservas would need, because the statement made by the originating bank is a legal statement in international banking. The originating bank would not issue the statement if it is not 100% sure the funds are clean and clear.
Click to expand...

Is it not a given that the sending bank, for example in the U.S., already knows that the funds are legitimate? How would they have those funds deposited in their institution without the review of their compliance department? That is why funds flow freely from account to account inside the U.S. as a result of compliance regulations. Hence, there is really no need for DR banks to be required further documentation from monies sent from U.S. institutions.
 
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philly

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the saga continues...

After providing the "Justification" documentation they said the "adjudicator" is reviewing the case. After a week more of the money not being available...they come back and now require proof of where I got the money!!!

So i had my bank rep call them and we still couldn't resolve it. My bank rep (from the wire transfer division of TD Bank) is telling them that the funds have already been approved for international wire transfer. That the funds were taken from my checking account and are free and clear and should be made available to recipient within 3-5 business days.

So now we canceled the account with BanReservas and are looking for a new bank...this time i will make 2 deposites of < 10k

oooo boooy

I think what is going on is BanReservas thinks we are opening the account only to transfer the money and then close it and they don't want that business...which they are wrong that is not our intention but that is what i think is going on...

oh well...banco popular anyone? let's try them next..
 
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