How can I protect myself when sending large sums of money overseas?

Only send large sums of money overseas to someone you know personally, or whose identity you’ve verified and are sure about. Even if you’ve dealt with a particular overseas company previously, always independently verify the bank account details you are sending money to - in order to prevent what's known as ‘cuckoo smurfing’ - which involves criminals laundering the proceeds of crime using legitimate bank transactions. Criminals exploit innocent individuals by hijacking their legitimate bank transactions and substituting ‘dirty’ money to gain a legitimate transaction receipt. To prevent cuckoo smurfing, be suspicious of anyone asking you to make payments overseas in multiple small amounts, and don’t respond to emails or texts purporting to be from AUSTRAC saying you have a received a large sum of money and asking you to click on a link. Also be suspicious of a company or individual wishing to collect your payment in cash at an overseas destination before providing goods or services.

What’s the difference between a transfer limit and a transaction limit when I’m transferring a large sum?

A transfer limit is the amount a bank or financial institute (or the government) places on a single transaction. For example, the Australian government has a $10,000 limit on all cash transactions, so whether you’re receiving money or sending money overseas, any transactions over $10,000 have to be reported to AUSTRAC. A transaction limit is the limit you choose to put on daily transactions on your bank accounts to limit your exposure to financial fraud. This limit includes all money out of your account in a single 24-hour period.

Which fees are usually charged for international transfers?

The fees charged by banks for transferring internationally are usually per transaction and vary widely from $4 up to $35. If you regularly need to make overseas payments, it may be a good idea to set up an international bank account which offers free international money transfers. Some banks offer a set number of international bank transfers free per month as a sweetener to encourage new clients to open an account . These bank fees for international transfers are in addition to and separate from the exchange rate you’ll receive for converting your money into another currency.

How long does it take to transfer large sums of money between banks?

International money transfers (through a transfer service such as Western Union) are almost instantaneous. International bank to bank transfers, where you use your own bank to transfer money to another person’s named bank account overseas, can take up to 48 hours to show up in your online banking. International bank drafts, which are like an international cheque that you can mail to a recipient overseas, can take weeks to process and clear the banking system, which is why they’re infrequently used nowadays.

How do I compare fees if I want to transfer a large sum of money overseas?

Savvy can not only make it easy for you to compare the fees you’ll encounter if you’re comparing bank accounts, but also those for money transfers. We can show you which company may be best for your needs by presenting you with clear and easy-to-understand comparison information so you can see which international transfer company may offer you the best deal.