Writing Ones Self A Check To Deposit In The Phils?

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Posted

I've heard if this method before but I wonder would it work on large sums. Lets say a foreigner wants to purchase an auto in Cebu for 25k. As long as he has the funds to cover the check,there would be no problem?

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Posted

No problem?  Hmm.  First you have to have a US$ account in Philippines, which is no problem really.  Then you need an account in a US bank with sufficient funds to write the check, again not a problem for many.  Then you have to wait 30 days or so for the check to clear, no problem except it takes a while.  Then you can take out US$ and convert them to pesos and spend them no problem.

 

So yep, no problem.

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Posted

Most banks here take about a month to process a check (crazy, I know), but yeah, you can do it.  For large sums like $25k - it might be the easiest, or at least cheapest, option.

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Posted

For large sums like $25k -  

 

 

Be ready for the question some might ask, "Where is this amount coming From." The PNB require a home Bank Certificate for amounts over $5.000 after 2 or 3 times they don't seem to bother but my First transfer/ Cheque deposit they wanted to know. 

 

JP :tiphat:

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Posted

Most banks here take about a month to process a check (crazy, I know), but yeah, you can do it.  For large sums like $25k - it might be the easiest, or at least cheapest, option.

 

It is not the banks fault. The delay is so the US government has time to review the transaction for criminality.

 

With the additional burden on foreign banks imposed by FATCA just be happy that you can still open bank accounts in the Philippines.

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Posted

 

For large sums like $25k -  

 

 

Be ready for the question some might ask, "Where is this amount coming From." The PNB require a home Bank Certificate for amounts over $5.000 after 2 or 3 times they don't seem to bother but my First transfer/ Cheque deposit they wanted to know. 

 

JP :tiphat:

 

 

I have written 10-15 checks to myself at BPI, with the largest being USD 25k (also for a car), and have never been asked any questions.

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Posted

I like OnMyWay have never had any issues. I wrote a $70,000 check for deposit into my wife's USD account for payment of our long-term lease. No issue with delays or fees past the normal 4 week processing time. 

 

The issue is usually with your home country's tax agency. The IRS will certainly inspect a large transaction like that but it doesn't mean that it is undoable. If you as a US citizen, write a large check for deposit like this, you will most likely have to report the transaction to the IRS (see FBAR) as it is larger than $10,000. Other than that it is easy.

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Posted
It is not the banks fault. The delay is so the US government has time to review the transaction for criminality.

I always assumed the delay was just the local bank keeping it for interest or something... or just basic Filipino inefficiency.   But I watched a check and it took 28 days before it processed in my US bank.  2 days later it was in my BPI.  Looks like the delay is, in fact, on the US side.  I was surprised.   :tiphat:

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Posted

 

It is not the banks fault. The delay is so the US government has time to review the transaction for criminality.

I always assumed the delay was just the local bank keeping it for interest or something... or just basic Filipino inefficiency.   But I watched a check and it took 28 days before it processed in my US bank.  2 days later it was in my BPI.  Looks like the delay is, in fact, on the US side.  I was surprised.   :tiphat:

Yes, it's because of USA. If I remember corect it started after the terrorist attack against World Trade center.  As if terrorist organisations can't make SEVERAL transfers of 9999 USD...    So I suppouse it DON'T stop terrorists,

but mess up for common people...

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Posted (edited)
Looks like the delay is, in fact, on the US side.  I was surprised.

 

I have heard others say that the check cleared their US account within the first week but they still could not access the money for 30 days.  IF it is on the US side then every other country should be able to deposit checks and have them clear much faster.  I asked my bank manager (years ago) if I could open a Canadian dollar account and deposit checks drawn on my Canadian bank.  She said Yes but I still have to wait 30 days for the checks to clear AND I have to take the money out in pesos because, unlike US dollars the bank does not keep a supply of Canadian dollars on hand to allow me to withdraw and they will not bring them in special for me unless I am a VERY important customer.

 

EDIT:  Taking the money out in pesos means I am subject to whatever exchange rate that bank wants to give me on that day.  It is never in my favor.

Edited by Dave Hounddriver
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