Transferring money abroad is a common operation for both individuals and companies. Some send funds to relatives, others pay for real estate or business deals in Dubai. But any transfer has its pitfalls. To avoid unpleasant situations, it’s important to understand the risks and how to minimize them.
Main risks in international transfers
Time delays
Even if a bank promises to transfer funds within 2-3 days, in practice it can take up to a week. There are various reasons for this: holidays, document checks, errors in the details.
High fees
Each intermediary in the chain takes their cut. Correspondent banks, currency conversion, and fixed fees—the total commission can reach up to 5–7% of the total amount.
Exchange rate losses
If money is converted from rubles or hryvnias to dollars and then to dirhams, at each step you can lose part of the amount due to an unfavorable exchange rate.
Blocks and checks
Banks and payment systems are required to maintain security. Therefore, any large transaction may be delayed and subject to additional documentation requests, such as contracts, invoices, and proof of funds’ origin.
Risk of fraud
When working with unverified exchange services, there’s always the risk that the partner will prove unreliable. This is especially true for cash-to-cash and hand-to-hand schemes.
How to minimize risks
Choose proven channels
SWIFT transfer remains the most official option, but it’s expensive and slow. Hawala and exchange services are more convenient, but it’s important to only work with companies that have been in business for a long time and have a reputation.
Split the amount
If you need to transfer a large payment, it’s best to split it into several installments. This will reduce the banks’ scrutiny and reduce the risk of losing all your funds if a problem arises.
Fix the course
Discuss the exchange rate in advance and secure it in your agreement with the intermediary. This will protect you from currency fluctuations during the transfer.
Prepare the documents
Even if you use alternative methods, have proof of the origin of the funds and the purpose of the transfer on hand. This will be helpful if questions arise from the bank or tax authorities.
Check the cut-off time
There’s an important detail about bank transfers: the deadline for same-day processing. If you send money later, it won’t be processed automatically until the following day.
Example: transfer of $100,000
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Via SWIFT: takes 3-5 days, commission is about 2-3%, plus the risk of delays.
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Via Hawala: takes 1 day, commission is about 1%, the rate is closer to the market rate.
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Via cryptocurrency: takes a few hours, the commission is minimal, but there is a risk of the coin’s value falling.
This example shows that each method has its own strengths and weaknesses.
Conclusion
Transferring money abroad always involves certain risks. But by planning your strategy in advance, choosing the right channel, and preparing the necessary documents, you can make the process fast, secure, and cost-effective. Remember: a reliable partner and transparent terms are the key to ensuring a smooth transfer of funds.
