International Business And Bank Money Transfers - Douglas E. Castle

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International Business Update: Wiring Funds And Banking

If you are either conducting business internationally or are contemplating conducting any type of business which may require international electronic or SWIFT transfers of funds (i.e., funds transfers inbound or outbound via wire) the current terrorist threat levels are already creating additional diligence and reporting on the part of depositary institutions, as certainly as it will now take you longer to go through airport security clearance protocol on any international flight due to the prevalance of consciousness relating to possible terrorist or Ebola virus-related problems throughout the world.

Following are several suggestions to provide your banker, or your recipient's banker – as well as the host of regulators to which they now answerable – with additional comfort regarding the nature of your transactions, business and funds. 

While you may see these steps as “overkill,” rest assured that they are not, and that they will reduce the likelihood of any holds or restrictions on your funds. Again, these are not legally mandated, but are just an extra step of precaution:

1. Do not, under any circumstances, accept any inbound transfers, or make any outbound transfers by wire (or by check, for that matter) to businesses or other organizations located in any of the prohibited jurisdictions on US Ex-Im Bank's most recent publication of the Country Limitation Schedule (a link to which which follows for the purposes of example) or which happens to be on the Department Of The Secretary Of State's “Watchlist” (a link to which follows for the purposes of example) ;
2. Pre-advise your bank, via email to your account officer or manager, if you are anticipating any transfer into or out of your account in any amount in excess of $1.0 million US;
3. Have any transferor execute the following undertaking [or one in a format suggested by your legal counsel] in a signed writing and either fax or email the same to your banker (in the form of a PDF attachment) with your own covering letter to accompany it: “ _________________ is transferring funds in the amount of _____________________ to ________________ [recipient name] via SWIFT [or even via check, if you'd like to take that extra precaution when you are accepting a check drawn on a foreign bank in payment for goods or services]. This transaction is made using clean, cleared funds of non-criminal origin, and is being transferred in compliance with applicable laws; further, these funds are free of all liens, taxes, encumbrances and other claims of any sort, and are being conveyed to be utilized for legal purposes.”

The above steps will help to keep both you and your bankers in the best possible standing. Should you wish to view Ex-Im Bank's latest updated Country Limitation Schedule (CLS), go to http://www.exim.gov/tools/countrylimitationschedule/index.cfm.

Should you wish to find out if the country with which you are considering doing business is “watchlisted” by either the Department Of State or the Department Of Homeland Security, go to either http://www.state.gov/ or http://www.dhs.gov/ respectively. Both websites offer you telephone numbers to contact helpful civil servants to answer any of your questions.

Douglas E. Castle

NOTE: THE INFORMATION CONTAINED IN THIS ARTICLE SHOULD NOT BE CONSTRUED BY THE READER AS BEING LEGAL, FINANCIAL, TAX, ACCOUNTING, ECONOMIC OR INVESTMENT ADVICE. NO OFFERING OF SECURITIES OR OTHER INVESTMENT INTERESTS OF ANY TYPE IN ANY ENTITY IS MADE HEREBY, NOR IS A SOLICITATION FOR THE PURCHASE OF SECURITIES OR OTHER INVESTMENT INTERESTS OF ANY TYPE IN ANY ENTITY MADE HEREBY. THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND REPRESENTS THE VIEW OF THE AUTHOR ONLY.

THIS ARTICLE IS COPYRIGHT 2014 BY DOUGLAS E. CASTLE, WITH ALL RIGHTS RESERVED. ANY REPRODUCTION, TRANSMITTAL OR DISTRIBUTION OF THIS ARTICLE, EITHER IN WHOLE OR PART, IS UNAUTHORIZED AND MAY BE UNLAWFUL, UNLESS FULL ATTRIBUTION IS GIVEN TO THE AUTHOR AND ALL LINKS IN THE ARTICLE REMAIN INCLUDED AND “LIVE.”

TAGS, LABELS, SEARCH TERMS, CATEGORIES AND KEY WORDS FOR THIS ARTICLE: Douglas E. Castle, International Ventures, Banking, Wire Transfers, EX-IM Bank, Department Of State, Department Of Homeland Security, Representations, Anti-Money Laundering, Terrorism, Ebola.

U.S. and INDIA: A Tighter Alliance

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There is an ever-increasing warmth between these two countries, which is economically and politically beneficial to both parties. While those of us who are readers of The Internationalist Page Blog or just categorically Internationalists, this is a bit ironic because India has been a substantial outsourcing destination for U.S. companies and is occasionally maligned for "taking jobs away from Americans." While in a sense this might be true, the savings (arbitraging the cost of Indian labor against the much higher cost of American labor) to certain U.S. companies has helped to keep them in business in a time of extraordinarily low capital availability, and has saved some employees by keeping their employers in business.

India is also becoming more of a consumer market, and some United States companies are offsetting the outflow of dollars to India by selling U.S.-produced products to the growing middle-class in India's confusing but nonetheless fast-emerging economy.

In terms of politics, both countries have their concerns about the spread of radical Islam and terrorism from Pakistan, Afghanistan and other nations in the region.

While the cultures are quite different, both countries have some serious security and economic concerns in common, making them wonderful international trade partners.

The's a definite warming up of relations on all fronts between the two nations.

This warmth is signified (in a monetary marriage) in an excerpt below from Chairman Fred Hochberg's Quarterly Ex-Im Newsletter Report:
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Ex-Im Bank Signs $500 Million Agreement with ICICI  Bank

Chairman Hochberg traveled  to India in January on a business-development mission. While in India, the  Chairman signed a $500 million Memorandum of Understanding (MoU) with ICICI  Bank pledging cooperation on financing projects beneficial to both India and  the United States. Up to $500 million in new transactions could be financed as  a result of the initiative.

ICICI Bank is  India's largest private sector Bank and this MoU will support the financing of  U.S. goods and services by ICICI Bank's customers. Ex-Im and ICICI Bank see  specific opportunities in air traffic control and infrastructure; railway;  urban metro and port development projects; power generation, including  renewable energy; oil and gas projects; and water treatment projects.

"India  is an emerging market that provides enormous opportunities for U.S. companies," said Chairman Hochberg. "This $500 million MoU represents a  partnership between our two countries and will help ensure that American  companies and workers help India meet its growing infrastructure needs, while  creating jobs here at home."

Speaking on the  occasion, Chanda Kochhar, MD & CEO, ICICI Bank said, "ICICI Bank is pleased  to be working with the U.S. Ex-Im Bank towards the growth of India-US trade.  This MoU combines the strengths and expertise of both our institutions, helping  U.S. Ex-Im to leverage ICICI Bank's strong corporate relationships and project  finance capabilities, and ICICI Bank to offer diverse funding options to its  clients."

Ex-Im Bank's  authorizations in India continue to increase dramatically, bringing the Bank's  total exposure to India to $8.5 billion as of the end of the first quarter in  FY 2013. India is currently the Bank's second largest market in terms of  overall exposure. Last year, US Ex-Im Bank financed 17 percent of all U.S.  exports to India.

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As a trend-spotter and the Author of The Global Futurist Blog, I would expect this warming trend to continue over the next several years. Personally, I am hoping it will. Both countries can help each other, and the U.S. needs to cultivate some genuine allies in the region.

As always, thank you for reading me, and thank you for sharing my articles with your colleagues through your vast, expansive social media networks.

Douglas E. Castle

Sponsored By:
ICS - International Connection Services
CFI - CrowdFunding Incubator LLC
Global Edge Technologies Group LLC

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CLS - Country Limitation Schedule: EXIM Bank, USA

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If you conduct business with The Export-Import Bank of The United States, the Bank periodically publishes a list of countries which have limitations or restrictions placed upon them (usually in accord with U.S. political policy, with a respectful nod to those United Nations' sanctions, pronouncements, resolutions and other sentiments expressed in their many meetings) by the Bank in terms of their eligibility for EXIM's participation.

Following is the latest schedule which will likely be in effect at least for the first calendar quarter of 2013. The bulletin is excerpted from a regular notification which The Internationalist Page Blog and CrowdFunding Incubator LLC both receive:

You are subscribed to Country Limitation Schedule (CLS) for the Export-Import Bank of the United States.  This information has recently been updated, and is now available.

The Country Limitation Schedule (CLS) issued by the Export-Import Bank of the United States (Ex-Im Bank) has been updated. The new CLS is effective December 27, 2012.

The new CLS may be accessed on-line on December 27, 2012 at: http://www.exim.gov/tools/countrylimitationschedule/index.cfm. The CLS and Cover Letter are also attached as PDF files.

The CLS indicates where Ex-Im Bank is "open for cover" and where Ex-Im Bank is "off-cover". The "open for cover" designation refers to the possibility, rather than the certainty of Ex-Im Bank support in particular cases. Where the CLS presents an X mark, Ex-Im Bank is "off-cover", and is therefore not willing to consider approval of routine transactions. These "off-cover" determinations are due to economic and/or political risks associated with the country.

For more information on the Ex-Im Bank, please visit our website at:
http://www.exim.gov

• CLSCOVERLTRDec2012.pdf
• CLSDecembert2012.pdf

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Always remember that there are a number of EXIM banks throughout the world and situated in a number of countries. Each of these has the same basic agenda (i.e., to stimulate its home country's exports, and help with its Balance Of Trade and Balance Of Payments, et cetera). Without rendering any professional opinion or offering you any advice, a saavy businessperson can arbitrage the CLS and other differences in policies between these banks through re-domiciliation and a number of other devices to favorably arbitrage some very exciting business transactions.

As always, thank you for reading me and for re-tweeting me.

Douglas E. Castle

p.s. The notion Of "Going Green" is a major, growing trend, and will become increasingly involved in government policy-making, contracts and favors, as well as being heavily infused into the capital markets, including CrowdFunding - reference The Global Futurist Blog. Expect the EX-IM Banks in most of the industrialized nations to reflect this in their willingness to issue financing and guaranties.

p.p.s. "Always remember that one country's protectionism is another country's industry opportunity." -  Douglas E. Castle

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Export Import Bank (EXIM) Update - Reading Between The Lines

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I've taken several weeks to analyze the implications of EXIM's Chairman's Quarterly Newsletter, cited below. On the surface, it "feels" positive -- at least in terms of its artful, bulletized roster of achievements.

But let's not forget that that EX-IM exists largely for the purpose of assisting smaller, entrepreneurial enterprises in getting trade financing, credit enhancements, guaranties, and project financing to make it easier for them to enter the global marketplace. This should, in theory, create export, joint venture and project development opportunities for US businesses throughout the world, for the benefit of the US small business sector, the other nations interacting with these businesses, and the US economy-at-large in terms of the balance of trade, the balance of payments and employment. Noble objectives all.

Yet, very large companies, like Caterpillar are the recipients of the greatest percentage, by far of EX-IM funds and credit enhancements. It would seem to be as if EX-IM simply helps big winners continue to win. In other cases, many of the loans and guaranties issued to "small businesses," are actually issued to separately incorporated subsidiaries or affiliates of much larger businesses - like Halliburton Corp, or even ENRON Corp. (in days past) for example. It is not an easy process for a small business to navigate its way through the mountain of compliance and reporting paperwork required by EX-IM. It is only natural then, for large companies to use their resources and expertise to use certain small businesses (particularly those with some minority or special status) as proxies for them to obtain this inexpensive financing.

Too many "small businesses" truly qualify as such only superficially, with most of the recipients of funding and benefits being extensions of much larger businesses with greater resources and lobbying power. While this does benefit the Balance of Trade and Balance of Payments for the United States, it hardly promotes new jobs creation in the US. Sadly, too much of the largesse of the EX-IM Bank does not actually 'trickle down' to the independent US small businesses which would generate the greatest returns in terms of employment and taxable profits... nor does this benefit the smaller businesses internationally which might gain a market advantage or edge by either importing a US product, or by partnering with a peer-sized US company.

Truly independent US-based small businesses need an easier, less-complicated route to EX-IM's resources and programs; at the same time, I believe that EX-IM might do more to qualify those smaller businesses which are not not looking for less-expensive financing -- but those that would, of necessity, use a limited infusion of capital most prudently and efficiently.


The Quarterly Newsletter follows:

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The following information is from the Export-Import Bank of the United States (Ex-Im Bank). It is being sent to subscribers to the Bank's email list for those interested in learning about Ex-Im Bank's activities.

 Export-Import Bank of the United States

Office of Communications

CHAIRMAN'S QUARTERLY NEWSLETTER
October 18, 2011
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Ex-Im Reports Record-Breaking Year

Ex-Im Approves Over $32 billion in financing for FY2011; $6.0 billion in financing to small business

For fiscal year 2011, Ex-Im Bank approved over $32 billion in financing, an all-time record for the Bank and up 110% from 2008. These financings supported approximately 300,000 U.S. jobs and included more than 3,000 small business transactions - up nearly 20%. Fiscal year 2011 marks the third consecutive record-breaking year, with significant growth seen in industries such as aircraft, renewable energy, and infrastructure as well as key markets including Colombia, India, Turkey, and Sub-Saharan Africa.
Ex-Im Bank is steadfast in achieving the goals of the President's National Export Initiative (NEI) in doubling exports by 2015. In addition, significant progress was made in accomplishing Ex-Im Bank's goals to add 5,000 new small businesses to the Ex-Im Bank portfolio, double the small business volume to $9 billion, and approve $30 billion in total small business transactions.

• Add a total of 5,000 new small businesses to the Ex-Im Bank portfolio
   1500 as of 9/30/11
  5000
• Double its annual small business volume to $9 billion
   $6 billion as of 9/30/11
  $9 billion
• Approve $30 billion in total small business transactions
   $15.3 billion as of 9/30/11
  $30 billion

Preliminary FY'11 Highlights Include:

• 3,750 transactions
• 1,019 companies new businesses to Ex-Im portfolio
• $6.0 billion in small business export financing, an all-time record
• $719 million in minority- and woman- owned export financing
• $720 million in renewable financing, up from $30 million in 2008
• Over $1.3 billion in Sub Saharan Africa - first time we have passed the billion dollar mark in Africa
• $2.9 billion increase to India, a direct result of the President's efforts to build a strategic alliance

Ex-Im Bank Issues Over 100 Express Insurance Policies

Since its launch at Ex-Im Bank's 2011 Annual Conference, express insurance has proved to be a much-needed short-term export insurance product, which is available only to small businesses. One hundred and twelve exporters purchased an express insurance policy in fiscal year 2011 leading to over $50 million in authorizations. Thirty-two of our insurance broker partners distributed more than 90% of the express insurance policies, with Trade Acceptance Group of Minnesota and Global Business Solutions of North Carolina tied for the most express policies sold.

 SEE THE ENTIRE PUBLICATION OF THIS QUARTERLY REPORT IN A NEW WINDOW AT http://www.exim.gov/newsletter/volume6/newsletter_October18.cfm
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It would also seem to make sense for the US Small Business Administration (SBA) to work in closer coordination and cooperation with EX-IM to better serve the purposes of these little 'employment and innovation engines' than what is being done at present.

Douglas E Castle




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MORE EXCELLENT RESOURCES FOR U.S.-BASED EXPORTERS!

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DATE OF THIS INFORMATION: 23 August, 2007.

Dear Friends:

See the picture on the right? Yes you do. Some people look at it and get depressed, but others (like myself, irrational optimist that I am), see it and say, "Goodness! This bodes well for the export and trade businesses!"

Ex-Im Bank has come out with some new announcements regarding resources which they stand ready to make available to U.S.- based exporters who have more time on their hands than capital in the bank (just a joke, really...no offense intended).

EX-IM'S OWN TRADE FINANCE CONSULTANTS GIVE YOU ADVICE AND ASSISTANCE AT NO COST:

www.exim.gov/marketing/enewsresponse.cfm

SMALL BUSINESS PORTAL AND INTERACTIVE CD (FREE!):

www.exim.gov/smallbiz/index.html After you have done that, email joseph.butler@exim.gov in order to get your free interactive CD designed to assist non-financial folks in finding trade finance solutions that address the challenges they face in growing their businesses.

FIND CO-VENTURERS AND TRADING PARTNERS AT EXIM'S OWN EXPORT YELLOW PAGES:

www.exportyellowpages.com/exim

Faithfully,

Douglas Castle,

Internationalist