Bangkok Bank Ordered To Halt Wire Transfers

[Guest endure]

Regulators' report disciplines BBL

New York branch will tighten scrutiny

DARANA CHUDASRI

US regulators have ordered Bangkok Bank's New York office to temporarily halt wire transfers and demand drafts pending the improvement of compliance with US anti-money-laundering laws.

The 25-page directive, dated April 20, ordered Bangkok Bank to stop wires until it set up an approved software system to allow the identification of potentially suspicious activities and monitor transactions to meet the US Bank Secrecy Act (BSA).

//Edit - For full report please consult Bangkok Post

[Ulysses G.]

It took me YEARS to get Bangkok Bank to let me send money freely out of the country for business purposes and now the US is giving them exuses to go back to the stone age.

[John K]

I don’t think you will have a problem. The program is just a watch dog. If your transactions are legitimate, then there only may be a short delay while they get it in place. I think Thaksin would be more worried. He will need to stash his cash soon.

[Chang_paarp]

The US regulatory action identifying weaknesses in Bangkok Bank's internal controls mirrors a directive made last year by Japanese bank regulators against Bangkok Bank's Tokyo and Osaka branches.

Japan's Financial Services Authority in November announced that the two Bangkok Bank branches had been found to have "serious problems" in their internal audit procedures and risk controls, and had been "found to have repeatedly violated the duty of personal identity verification" when processing currency transactions and opening bank accounts.

"Remarkable inadequacy was found with respect to the construction of a system for guidance and training of executives and employees, and control of administrative work," the FSA said in a statement. These are strong words for a Japanese burocrat.

A review by the bank after an FSA inspection in September found a number of "suspicious transactions".

Samart Buranawattanachoke, an assistant governor at the Bank of Thailand, said the central bank would request information from Bangkok Bank to examine whether its New York branch had affected local operations.

He said corrective measures would not be introduced right away."It is normal for financial regulators to examine commercial banks in their respective countries and punish or order them to correct what may not comply with standards."

I should be gob smacked that a large company doing business in foreign markets did not bother to keep up with the local regulations.

Will anyone give odd that Bankok Bank will fall foul of other banking regulators for failing to comply with the change of regulations since 9/11? "What new regulation?"

[Johpa]

It took me YEARS to get Bangkok Bank to let me send money freely out of the country for business purposes and now the US is giving them exuses to go back to the stone age.

If such requests from the US causes a crimp in the Sophonpanich's family profiting from the transfer of illegally obtained funds out of the country then I am all for it, even if if causes you some mild inconvenience.

[IMA_FARANG]

Regulators' report disciplines BBL

New York branch will tighten scrutiny

DARANA CHUDASRI

US regulators have ordered Bangkok Bank's New York office to temporarily halt wire transfers and demand drafts pending the improvement of compliance with US anti-money-laundering laws.

The 25-page directive, dated April 20, ordered Bangkok Bank to stop wires until it set up an approved software system to allow the identification of potentially suspicious activities and monitor transactions to meet the US Bank Secrecy Act (BSA).

//Edit - For full report please consult Bangkok Post

I can't seem to get the link to that Bangkok Post article to work. It just gives me a blank window, and after about 3 minutes of blank space I get a "site not found" error.

I transfer an amount monthly from my U.S. bank to Bangkok Bank for my Thai GF's account. The last transfer was made on 6 June. To the best of my knowledge, it was made and confirmed by my U.S. bank.

This is a recurring wire transfer, which has been pre-approved by my U.S. bank, and has been in effect for over a year. Hopefully, that is enough to keep the wire transfer going.

[IMA_FARANG]

Regulators' report disciplines BBL

New York branch will tighten scrutiny

DARANA CHUDASRI

US regulators have ordered Bangkok Bank's New York office to temporarily halt wire transfers and demand drafts pending the improvement of compliance with US anti-money-laundering laws.

The 25-page directive, dated April 20, ordered Bangkok Bank to stop wires until it set up an approved software system to allow the identification of potentially suspicious activities and monitor transactions to meet the US Bank Secrecy Act (BSA).

//Edit - For full report please consult Bangkok Post

I can't seem to get the link to that Bangkok Post article to work. It just gives me a blank window, and after about 3 minutes of blank space I get a "site not found" error.

I transfer an amount monthly from my U.S. bank to Bangkok Bank for my Thai GF's account. The last transfer was made on 6 June. To the best of my knowledge, it was made and confirmed by my U.S. bank.

This is a recurring wire transfer, which has been pre-approved by my U.S. bank, and has been in effect for over a year. Hopefully, that is enough to keep the wire transfer going.

Update:

Got thru to the Bangkok post article. As I interpret the article the problem is with some "over the counter" transfer requests (i.e. people wo walk in to the Bangkok Bank in New York with cash to transfer to Thailand). The concern is that Bangkok Bank in New York hasn't been checking properly on the background of these people. Don't think it will affect wire transfers from other U.S. banks. Anyhow, we shall see.

[lopburi3]

I made my last wire transfer in May and this helps explain why my bank advised me that the wire would use Chase New York as intermediary. Did not see any effect in time required (next day deposit in Bangkok).

[Ulysses G.]

It took me YEARS to get Bangkok Bank to let me send money freely out of the country for business purposes and now the US is giving them exuses to go back to the stone age.

If such requests from the US causes a crimp in the Sophonpanich's family profiting from the transfer of illegally obtained funds out of the country then I am all for it, even if if causes you some mild inconvenience.

It ain't mild!

[thaihome]

SWIFT transfers to Bangkok Bank (BKKBTHBK ) go direct to Thailand and do not go through the NYC branch.

TH

Edited June 19, 2006 by thaihome

[lopburi3]

SWIFT transfers to Bangkok Bank (BKKBTHBK ) go direct to Thailand and do not go through the NYC branch.

TH

SWIFT most surly does go through an intermediate bank and that bank could have been, and for me was, Bangkok Bank New York, in the past. At that bank (Bangkok Bank NY) US$5 was deducted from the total transfer to Thailand as a processing fee and was listed on receipt provided by Bangkok Bank branch here if you asked for a copy.

[thaihome]

SWIFT transfers to Bangkok Bank (BKKBTHBK ) go direct to Thailand and do not go through the NYC branch.

TH

SWIFT most surly does go through an intermediate bank and that bank could have been, and for me was, Bangkok Bank New York, in the past. At that bank (Bangkok Bank NY) US$5 was deducted from the total transfer to Thailand as a processing fee and was listed on receipt provided by Bangkok Bank branch here if you asked for a copy.

Interesting... I note that the Bangkok Bank NYC branch has a different SWIFT (BIC) code (BKKBUS33) then the Thailand main office (BKKBTHBK). I do know that my BofA SWIFT transfer did not go through the NYC branch as I had them look for a transfer a couple of years ago and they informed me if I used BKKBTHBK it did not go through them. I also wonder why a transfer must go through an intermediate bank?

TH

[ToTheBeach]

I also wonder why a transfer must go through an intermediate bank?

TH

Not all banks in all coutries have direct contact with eachother and are therefor not able to directly transfer between those banks. They normally 'clear' those transaction via intermediare banks who than deal with the receiving bank. Often international monetaire hubs are used for this clearing. I have seen many international transactions seen routed via New York and intermediare banks there.

[lopburi3]

BoA, as a major bank, probably has direct contact but most banks do not and use an intermediary bank. In my case it is now Chase, New York. The swift code is used by Chase. My bank uses the ABA number in New York for Chase. Bangkok Bank New York also has an ABA number which I assume my bank used in the past (although I never provided them any information other than the BBKBTHBK Swift code and local bank information).

I made another transfer Monday night at 2200 and an ATM receipt at 1150 on Tuesday showed the amount in my Bangkok account so it seems to be just as fast using Chase.

[thaihome]

BoA, as a major bank, probably has direct contact but most banks do not and use an intermediary bank. In my case it is now Chase, New York. The swift code is used by Chase. My bank uses the ABA number in New York for Chase. Bangkok Bank New York also has an ABA number which I assume my bank used in the past (although I never provided them any information other than the BBKBTHBK Swift code and local bank information).

I made another transfer Monday night at 2200 and an ATM receipt at 1150 on Tuesday showed the amount in my Bangkok account so it seems to be just as fast using Chase.

I am sure you are correct, a non-connected bank would make an ACH transfer to a connected bank which then intiates the SWIFT transfer. SWIFT has a web site with a BIC Directory that will show you if a bank is connected or not.

Interestingly, as I have posted in the past, 2 separate banks have declined to make ACH transfers to the NYC Bangkok Bank branch for forwarding on to my Thailand account. This, after both have made validating transfers that shows it works, and in one case after making 2 transfers for $5K each. Both banks said their ACH provider would not make transfers to a account outside the US. I do somewhat understand their position in the current anti-money laundering environment. Too bad, though, because it was considerably cheaper then SWIFT transfers.

TH