Monday, April 22, 2019

Four Days To Clear

The other day, Adolf had to send a tidy sum from his bank account to the trust account of a conveyancer.   (Here, lawyers don't do conveyancing - I'm not sure why.)

I tried to do the transaction using internet banking but there was a $20k daily limit and I was informed I'd have to go into a branch, be identified and an inter-bank transfer could be arranged.

So, off I trotted to the local branch.  The ladies were very helpful but I was astonished to learn that the funds could not be cleared for four working days.  I had thought the Commonwealth Bank was good enough for instant clearance on a paltry couple of hundred thousand or so.

Forty years ago, when there was no internet, no fax and no electronic banking I can understand why it might take a few days to clear funds from a private account.  But here we had the bank itself making the transfer, electronically.

I hope some knowledgeable reader can provide an answer to this question because I can't imagine what it might be.


gravedodger said...

Not sure on local law for you, but having been involved in some significant money movements in the last seven months, current money laundering regs and traceability rules has been in a word tiresome. Cant see the Drug dealers being concerned, a suitcase and a Glock seems to work for them.

Noel said...

Anonymous said...

Someone once told me it was so that they could pick up the interest on your money for a couple of days.

The Veteran said...

All to do with protection against money laundering but one has to wonder about overkill.

I chair a trust which gives out modest grants (usually in the hundreds of dollars)to the children & grandchildren of Vietnam veterans. Payments are made direct to the recipients bank account ... used to be by cheque but not now. Before the Trustee (Prudential Guardian) will action payment they need to sight original hard copy details of the recipients bank account details duly certified by the bank as correct. E-mailed copies are not acceptable. Has to be original hard copy.

Life used to be far more simple ... back then you had to go hand on knee to your local bank manager to convince him you were a right and proper person to be trusted with a cheque book. Happy daze?????

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