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I'm not in the US, but can fully appreciate the practice. If I were to request to move funds in 6-to-7 figures range across institutions, I absolutely would wa

by bostik 2y ago

I'm not in the US, but can fully appreciate the practice. If I were to request to move funds in 6-to-7 figures range across institutions, I absolutely would want the receiving outfit require that I visit my current outfit in person first to authorise such a transfer. Making sure that such visits are smooth and efficient is good service. On a related note, when I got my mortgage in the UK, the issuing bank/lender-arm required me and my wife each to get a Proof Of Being Alive. (I'm not a UK native.) Turns out embassies issue these quite routinely, for a modest fee, and a visit that lasts at most 15 minutes. At the time I found that requirement both confusing and irritating, but in the context of the article, it makes sense. The lender was about to issue a sufficiently large loan to a person with very limited[ß] UK transaction history. On the upside, more recently that same bank/lender prodded and arranged me to get an early, admittedly pretty good fixed deal on my remortgage - two months before the central banks started to hike their rates. Without that early intervention my current rate would be at least three percentage points higher. ß: from the viewpoint of a financial institution, who likely measures customer relationship ages in decades.

CaliforniaKarl 2y ago
> I absolutely would want the receiving outfit require that I visit my current outfit in person first to authorise such a transfer. So, about that… The Medallion Signature Guarantee is often obtained from an entity not involved in the transfer. From [0] on my post: > We do not provide medallion signature guarantees for assets you're transferring out of a Bank of America or Merrill account (guarantees are typically provided by a third party not involved in the transfer or by the firm receiving the assets). In a way, that's a good thing: By the time you've initiated this transfer, the receiving entity should have done their KYC. And the losing entity probably would not want to take the cost of the liability. Having a third party—one who has had you as a customer for some time—is a good layer of security.
- mananaysiempre 2y ago
  It’s also not unreasonable to expect that an entity you want to take assets out of will, to the first order of approximatiom, be incentivized to make any process involved in that as protracted and difficult to navigate as possible. (This is also, I expect, why the asset transfer process described in TFA is initiated from the receiving side, why mobile number portability is requested via your new mobile network, etc.) So if the recipient doesn’t want to take on the verification burden because they just met you, falling back to a third party rather than the sender makes sense.

by bostik 2y ago

CaliforniaKarl 2y ago

> I absolutely would want the receiving outfit require that I visit my current outfit in person first to authorise such a transfer. So, about that… The Medallion Signature Guarantee is often obtained from an entity not involved in the transfer. From [0] on my post: > We do not provide medallion signature guarantees for assets you're transferring out of a Bank of America or Merrill account (guarantees are typically provided by a third party not involved in the transfer or by the firm receiving the assets). In a way, that's a good thing: By the time you've initiated this transfer, the receiving entity should have done their KYC. And the losing entity probably would not want to take the cost of the liability. Having a third party—one who has had you as a customer for some time—is a good layer of security.

mananaysiempre 2y ago
It’s also not unreasonable to expect that an entity you want to take assets out of will, to the first order of approximatiom, be incentivized to make any process involved in that as protracted and difficult to navigate as possible. (This is also, I expect, why the asset transfer process described in TFA is initiated from the receiving side, why mobile number portability is requested via your new mobile network, etc.) So if the recipient doesn’t want to take on the verification burden because they just met you, falling back to a third party rather than the sender makes sense.