International Wires, Drafts, or iACH
All requests for international payments should be submitted to Accounts Payable, following the procedures identified in Operating Policy and Procedure (OP) 72.11. International payments can be made by wire transfer, draft, or international ACH (iACH).
Required Payment Information
In addition to invoice processing requirements identified in OP 72.11, international payments to foreign vendors must include complete information, as follows:
- Receiving bank - include the name, address (including country), IBAN Number, SWIFT BIC Code, and account number
- Beneficiary - include the name, address, contact e-mail address, and beneficiary's account name
- Currency - when payment is to be made in a foreign currency, be sure to indicate the currency type
Following receipt of the invoice, Accounts Payable will input the payment information into the authorized global payment provider's web portal in order to initiate the transaction approval process.
Some vendors require payment by bank draft. A bank draft is "a type of check where the payment is guaranteed to be available by issuing bank. Typically, banks will review the bank draft requester's account to see if sufficient funds are available for the check to clear. Once it has been confirmed that sufficient funds are available, the bank effectively sets aside the funds from the [entity's] account to be given out when the bank draft is used" (Source: http://www.investopedia.com/terms/b/bank_draft.asp).
A bank draft can be purchased in the currency of the beneficiary’s choice (not U.S. dollars). The draft will be drawn on a bank in the destination country. Please let Treasury & Cash Management know if the draft needs to be returned to the originating department for mailing to the beneficiary. Otherwise, the draft will be sent directly to the beneficiary.
Treasury & Cash Management allows 14 business days for international items to settle. If the beneficiary claims “non-receipt” of funds, please contact Treasury & Cash Management at 806.742.1700, to begin an investigation process.
International payments differ from domestic wires in several significant ways:
- Settlement dates can take up to 14 days
- Additional fees are often added by each correspondent bank. These expenses may be passed on to the requesting department.
- Attempts to retrieve funds (due to an error) are lengthy, expensive, and sometimes impossible. The risk factor increases exponentially in underdeveloped and emerging countries, or those areas that are embroiled in national strife.
The U.S. government subjects certain countries to sanctions, which means the TTU System is prohibited from sending money to these regions. View the current list of sanctioned countries.
Seek advice from General Counsel if the payment:
- Is directed to a bank that is not located in any of these countries, BUT the payee (organization or individual) resides in any of the sanctioned countries.
- Units must consult General Counsel to obtain approval for the expenditure. The approval
and associated documentation must accompany the invoice or the payment request will
be rejected by Treasury & Cash