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KhaoYai

Showing Income as a Foreign Exchange Transfer

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Posted (edited)

It is possible that someone else has posted on this issue but I'm short on time and just wanted to pass on some information I learned during a conversation with Transferwise today.  This situation doesn't affect me as yet but as I had reason to talk to Transferwise, I raised it.

 

People seem to be having probems proving that transfers into their account is a Foreign Exchange Transfer (FET). The consensus previously was that because Transferwise use Bangkok Bank as their partner in Thailand, you need to have an account with Bangkok Bank for any transfers through Transferwise to show as a FET. During my conversation today the agent I talked with traced my last transfer to use as an example.  The transfer took place on the 17th June and was actually sent via Kasikorn - however it arrived in my Kasikorn account showing as Dummy Branch MCL00004. So Kasikorn must class it as a domestic transfer when goes from their main account into my account.

 

I told the agent that I had been under the impression that Transferwise use Bangkok Bank as their partner - he advised me that they actually have 3 partners in Thailand - Bangkok Bank, Kasikorn and Thai Military Bank (TMB).  He told me it may be possible to specify which partner they used to make my transfers but I would need to contact them every time. However, as I described above - even if I specified Kasikorn, it will still not show as an FET in my account.

 

I'm sure I saw someone reporting that some of the transfers into their Bangkok Bank account failed to show as a FET - that it seems, may be because Transferwise used one of the other partners to facilitate that transfer (I'm guessing here but it could be that they decide who to route it through depending on who gives them the best exchange rate on the given day).

 

I advised the agent that this was a major headache for many expats in Thailand, he told me that Transferwise are aware of the issue and are looking into ways of solving it with their partners in Thailand.

 

For the moment he advise me that if I wanted proof that a transaction was a FET, I would need to do the following:

 

This is for those with Kasikorn Accounts - other banks will no doubt, be similar.

 

1. Call Transferwise each time I make a transfer and request it is made via Kasikorn (but he would look into whether or not a tag could be placed on my account that requested all future transfers were made via Kasikorn so I wouldn't have to call).

 

2. Contact Kasikorn's International Trade Centre who, on production of my passbook, passport and current visa, would be able to supply evidence that my transfers were FET's.

 

Complete pain in the ass but what choice do you have? If you want to get a better deal you have to accept that it will cause you some hassle but you could of course do a standard transfer out of your home account into your Thai account.

 

 

 

Edited by KhaoYai
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Posted (edited)
17 minutes ago, KhaoYai said:

1. Call Transferwise each time I make a transfer and request it is made via Kasikorn (but he would look into whether or not a tag could be placed on my account that requested all future transfers were made via Kasikorn so I wouldn't have to call).

 

Complete waste of time. They cannot guarantee it will arrive as international transfer. There are a zillion posts on here about  TW.

Edited by pontious
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3 minutes ago, pontious said:

Complete waste of time. They cannot guarantee it will arrive as international transfer. There are a zillion posts on here about  TW.

That is why you must contact the International Trade Centre for proof. I very much doubt that Transferwise have any control over the way their Thai partners handle the transaction.

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38 minutes ago, KhaoYai said:

That is why you must contact the International Trade Centre for proof. I very much doubt that Transferwise have any control over the way their Thai partners handle the transaction.

Look on the other threads regarding TW - some have spent hours trying to get the relevant documentation from intermediary  banks - a complete waste of time.

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Posted (edited)
16 hours ago, pontious said:

Look on the other threads regarding TW - some have spent hours trying to get the relevant documentation from intermediary  banks - a complete waste of time.

Possibly - I'm simply sharing what I was told so other members are aware. What do you suggest then? Do nothing?

 

This is a situation that needs putting right. The guy I talked to at Transferwise seemed concerned that they may lose business through this. If people are having problems getting the correct documents then letting Tranferwise know about that may be the best way of getting change.

 

Don't just whinge about a problem - deal with it.

Edited by KhaoYai
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has anyone used another transfer provider like Worldremit or WU Account transfer? Do these show as an FET?

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Some international transfers from Transferwise are recorded as FIT on my Bangkok Bank Statement.  lately those international transfers have been recorded as SMART. I asked the Manager of the Bank WHY... she replied all depends on the system used.. so I asked her.. would Immigration accept the code SMART.. she replied. . if they don't understand then I will give you a letter to clarify the coding.

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18 hours ago, KhaoYai said:

 

It is possible that someone else has posted on this issue

 

Many people, many times.

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After an exchange of emails with TW they said that they would tag my transfers to only go through the BKK bank partner to my BK bank account, this would then show FTT but they also said that they can't guarantee that this would happen every time. My account is in Germany and I have the phone number of the German office so I will ring them everytime that I initiate a transfer but before I send it to make sure. I can't do more than that. I use the German embassy for a letter of income so I don't really need this hassle but who knows what can happen, maybe they decide the letter is OK but they want the bank book as back up proof. I also spoke to a very understanding lady at my BKk bank branch who examined the SMT transfer from Kasikorn after my explanation about TW she said if needed she would write a letter for me to give to immigration so together with the TW PDF files, my German bank statement, my bank book and the letter from the bank and the embassy I should be good to go but TIT.

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TransferWise will set up a specific recipient tagged via Bangkok Bank to your Bangkok Bank account which always shows as an International Transfer in your Bangkok Bank account. Worked for me on my last 12 transfers!

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2 hours ago, Snow Leopard said:

has anyone used another transfer provider like Worldremit or WU Account transfer? Do these show as an FET?

I used xendpay recently, this gave the FTT i needed on my statement and bank book.

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Posted (edited)
1 hour ago, stewartthailand said:

I looked at a number of transfer options including TransferWise. All seemed to have risks as described above.

I settled on using my UK bank First Direct. I go online, set up the transfer of sterling to my Bangkok Bank Account and it arrives the same day and shows as an International transfer not only in the bank book when updated but also in the Bangkok Bank App.

No fees or charges at either end, maybe a less advantageous exchange rate but no worries etc. 4 monthly payments so far and all with no problems.

When FD Bank first setup this free service I transferred money in GBP to my Bangkok Bank and got the Bangkok TT rate (very good rate) and no charges either end. The second time I tried FD would no longer allow me to send in GBP and the website would convert to THB (a quite good rate) but then Bangkok Bank levied fees at the other end. If what you're now saying is true I'll have another look at this. I just did a quick comparison on Transferwise £1710 = 65,208 THB - HSBC (FD parent bank) £1710 = 63304 THB plus fees at the Thai end. Now if you sent GBP to your Thai bank via HSBC you will get a better exchange rate with £4 fee from HSBC and no fees at the Thai end because they make their profit from the currency conversion. If HSBC had retail banking in Thailand none of this would be a problem as internal transfers are free.  

From Bangkok Bank website: 

What fees are payable to receive funds from abroad?
The fee is 0.25% of the total amount (minimum fee of 200 baht and a maximum fee of 500 baht). However, an intermediary bank (between the sending bank and Bangkok Bank) may also deduct an additional handling fee before sending funds to us.
 
When I send GBP to my Bangkok Bank they do not charge me any fees as they make money from the currency conversion. I don't know if that is just my branch or nationwide - perhaps others can comment.
Edited by Jaggg88
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I wrote this on another topic regarding Transferwise.

 

This is the Jomtien Immigration only, I was down on Monday and discuss the problem and was told " FTT is needed if you are using the monthly income method if you are using the 800,000 it isn't necessary "  just has to show the money in bank two months prior.

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3 hours ago, Haso said:

lately those international transfers have been recorded as SMART.

Could that be that those transfers were first received by one of Transferwise's other partners? When this issue first came to light it was thought that people needed to have a Bangkok Bank account for their transfers to appear as FET's - now that appears to have changed. As I stated in my OP I made a transfer in June and it went through Kasikorn's international department, finally arriving in my personal account as 'Dummy Branch'.

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