International transfer limits are those pesky things we all have to deal with; here’s why they matter and how they keep you safe.
If you watch the Netflix hit series, Ozark, here’s the first thing you’ll learn: you can’t wire $8 million, or any large amount of money, overseas in one go. It’s almost impossible, and if you could do it, it would be illegal. The ‘why’ is simple: there are limits on how much money you can send overseas at once. These international transfer limits exist to prevent money laundering and terrorist financing.
The Netflix show, Ozark
We love Ozark as much as the next person—but if we don’t enforce limits on international transfers of cash, we could be enabling money laundering. It’s not that we think you would ever actually be part of a drug cartel—we believe in you and your ability to make smart choices. But if we didn’t have these limits in place, it would be super easy for criminals to move money. We don’t want to help criminals do their jobs. Instead, we want to help people like you accomplish what they need without having to worry.
Why do international transfer limits exist?
Ever wondered why you can’t just wire your life savings to the Cayman Islands like the Byrdes do in Ozark? Well, it turns out that transferring large amounts of money is a bit more complicated than it seems. In most cases, banks and money transfer services often have limits, which can vary depending on the nature of the transfer. Your bank may limit you to transferring $5,000 per day — or may have no limits at all.
Our new transfer limits for U.K and Canada
Lemonade’s previous transfer limit were $2000 (CAD) daily and £1000 daily for Canada and U.K respectively. We have recently increased limits to both countries.
See also: How Lemonade Finance works
What’s the link between criminal activity and limits?
The reason you can’t send five million dollars to your buddy is that it could provide funding for criminal activity. Money laundering laws require financial institutions to report international wire transfers over $10,000 and domestic transfers over $3,000. This is only part of the story.
The IRS (the Internal Revenue Service) is primarily concerned with the reporting of international wire transfers valued at $10,000 or more. Reporting is done by the bank or money transfer service to ensure that transfers aren’t connected to illegal activity, such as money laundering. Large amounts of cash in one place makes it easier for criminals to hide their profits from law enforcement.
On the other hand, if you want to transfer less than $10,000 internationally, there’s no limit on how much you can send overseas. However, you will need verify your identity and answer questions about where the funds are coming from. You may also need to disclose what those funds will be used for before you can complete your transaction. You should consider some other factors before initiating international transfers such as:
Ensuring you get the best deal and rates
If you’re sending money overseas, chances are you’re also dealing with foreign currency. It’s important to know what exchange rate they offer as well as any applicable markup or spread.
Many providers will put a cap on how much you can send in one go; this is because providers need to know where their customers’ money is coming from. Banks also need to ensure that large sums of money are not the proceeds of criminal activity. It’s why most providers will ask for proof of identity and address. These verification processes cost money and providers often pass on the cost to you and if you’re not paying attention, these costs add up.
Lemonade Finance allows you to send money from the U.K and Canada to selected African countries with zero fees and no costs at all. download the Lemonade App on Google Playstore and App store.
With a Lemonade Finance, you can hold multiple currencies at once and send money to selected African countries at no extra fee. Even better you get a $25,000 or £15,000 monthly limit
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