3301 PR.02 Obtaining Cash for Yale Activities Abroad

Contents

1.     Overview

2.     Considerations Regarding Transporting or Obtaining Cash Outside the United States

3.     Evaluating Cash Needs in Advance of International Travel

4.     Preferred Payment Options for Yale Activities Abroad

5.     Alternate Payment Options, Including Obtaining Cash, for Yale Activities Abroad

Yale individuals are engaged in various activities around the world including research activities, collaborative educational and research programs, conferences, and participation in student excursions.  Yale individuals frequently travel outside the United States (“U.S.”) in support of Yale’s activities and programs, generally, and in connection with specific academic and research projects.  While many expenses incurred by Yale travelers can be paid in advance through preferred Yale channels or charged to a credit card, travelers may also require some amount of cash while traveling.  In such instances, this procedure outlines the relevant considerations regarding those cash needs and the mechanisms for obtaining that cash for Yale activities abroad. 

A. Cash Restrictions

The methods by which Yale travelers obtain cash for University activities conducted abroad may raise legal and other compliance issues for both the individuals themselves and for Yale. 

An individual who carries more than $10,000 United States Dollars (“USD”) in cash or cash equivalents (including traveler’s checks and prepaid cards) outside of the U.S. must declare such amounts to U.S. Customs; failure to comply may result in confiscation of the funds. 

Many countries also impose restrictions on the amount of cash an individual may carry in or out of the country.  It is important that Yale travelers understand the specific cash restrictions, which in some cases may be lower than $10,000 USD or equivalent, prior to traveling to another country.  Please visit the appropriate country page of the State Department International Travel: Customs and Import Restrictions website for general guidelines for U.S. persons regarding cash restrictions for a particular country.¹

A non-U.S. traveler should consult with their country’s embassy or state department for cash restrictions related to traveling to another country.  In addition, travelers may contact Yale’s Office of the General Counsel or the Tax Office with any specific questions.

In the interest of personal safety and the safeguarding of assets while traveling abroad, travelers are strongly advised not to carry excessive amounts of cash while traveling or engaging in University activities in another country.

B. Foreign Bank Accounts

Yale is not registered to conduct business in other countries and, as a general matter, cannot open a bank account in countries where it has not registered.  In the rare instance the University is permitted to open a bank account without registration in a country, University Policy 2805 Establishing and Maintaining University Bank Accounts provides the requirements, including authorization, with respect to opening a University bank account.

The ability to maintain a bank account in a particular country is likely to be limited to entities that are organized in that country or have otherwise registered to do business there. 

In any country where Yale does not maintain a bank account, the opening of a bank account by a Yale employee or affiliate to conduct Yale activities creates legal, tax, and other compliance issues, for both Yale and the individual, and should be avoided.

If a traveler’s personal situation requires that the traveler have a financial interest or have signature authority over a financial account outside the U.S., the traveler may be subject to additional tax and other compliance reporting requirements.  Travelers should consult their personal tax advisor regarding these additional requirements.

It is critical that Yale travelers review their cash needs well in advance of any international travel and plan accordingly.  In evaluating cash needs, travelers should understand the recommended University options for obtaining cash for Yale activities abroad, as well as the relevant University policies and procedures.   

Advance planning will avoid unnecessary delays in processing payment requests.  For example:  

• Purchases and payments are subject to Policy 3201 General Purchasing and Policy 3401 General Payment.  In addition, certain purchases may require a formal agreement, per Policy 3210 Purchase Contracts.  Travelers are expected to evaluate anticipated purchases and payments in advance to determine whether any specific requirements may apply (e.g., a services agreement, comparative pricing documentation, etc.) and whether those purchases can be accomplished via University-preferred methods.
• In the case of a new supplier, a Create Supplier Request in Workday must be completed prior to the transfer of funds and should be initiated well in advance of request.
• Payments, other than payments for goods, to individuals who are not U.S. citizens or U.S. permanent residents (i.e., green card holders), require the completion by the individual of an IRS Form W-8BEN, as well as documentation of the location of the activity.  Payments to non U.S. companies will require the completion by the company of an IRS Form W-8BEN-E.  These requirements also apply to Yale individuals who make cash payments to suppliers.  For additional information, refer to Payments to Non-U.S. Individuals and Entities.
• Prior to a Yale individual making a cash or out-of-pocket payment (e.g., with a personal credit card which will be reimbursed later) to a supplier, the payer must ensure that the supplier has been screened against U.S. prohibited parties lists prior to the transaction.  If the supplier is included on one of the U.S. government prohibited parties’ lists, payment cannot be made.  Please consult the International Toolkit: Prohibited Parties List for additional information and guidance regarding compliance and due diligence.

Set forth below are several preferred options for making payments in support of Yale-related travel and Yale activities conducted outside the U.S.  Only when these methods are impossible or impracticable should travelers utilize the alternate methods described in Section 5, below.

A. Wire Transfer

Yale can wire funds to most countries.²  Funds may be wired directly from Yale to the bank accounts of suppliers in the local country in U.S. dollars or local currency for transportation, accommodations, conference fees, translation fees, services, labor, guides, tours, equipment, etc.  Please refer to Policy 3401 General Payment for additional information regarding direct payments to suppliers, including wire transfers.

Note:  By wiring funds directly to suppliers, Yale travelers minimize the need for cash, as well as the need to obtain additional documentation while traveling outside of the country.

B. Yale PCard 

Individuals authorized to use a Yale PCard may use their issued Yale PCard when traveling abroad, subject to the approval of their department. 

Prior to travel, the traveler should determine, in consultation with their departmental business office, whether the Yale PCard is generally accepted at the destination of travel and understand their specific PCard limits.  In doing so, the traveler should review their PCard limits per transaction, per cycle, and per category of expense (e.g., travel, supplies).

If the Yale traveler does not have a Yale PCard, they may submit an application for a Pcard, with approval from their departmental business office.  Any such applications should be submitted at least one month in advance of anticipated travel.  Please refer to Policy 3215 Yale Purchasing Card for guidance related to the use of the PCard and instructions regarding PCard applications.

C. Non-U.S. Institution Collaboration

If Yale has a collaboration agreement with a non-U.S. institution in support of work in the relevant country, it may be possible to structure the work under the agreement so that payments to suppliers in the country are made by the local institution.  In such a scenario, Yale could wire funds to that institution in satisfaction of Yale’s obligations under the agreement. 

For guidance regarding such agreements, contact the Office of General Counsel.

Set forth below are several alternate options for making payments in support of Yale-related travel and Yale activities conducted outside the U.S.  Yale travelers should utilize these methods only when the methods outlined in Section 4, above, are impossible or impracticable.  If, after reviewing the options below, a traveler has concerns regarding the options for obtaining cash for Yale activities conducted abroad, contact the Controller’s Office.

A. Expense Advance

Individuals may request an expense advance via the Create Spend Authorization process in Workday.  The details of this process and related requirements are described in Procedure 3305 PR.01 Spend Authorization Process for Expense Advances.  When utilizing an expense advance for obtaining cash for activities abroad, please note: 

• With respect to funds that are deposited into the individual’s bank account in the U.S., cash can be accessed via ATM (subject to ATM availability and daily cash limitations).
• Travelers should identify ATM locations in the region in advance, as ATMs may not be widely available, and take appropriate steps when using ATMs to assure their personal safety.
• Most providers’ websites list ATM locations by city on a worldwide basis.  For example, the MasterCard Global ATM Locator and Visa Global ATM Locator provide the location of ATMs worldwide.  Note: In rare instances, a department may be able to send cash to the traveler via Western Union or other similar service providers.  This is not a preferred method, as use of such a service is administratively burdensome.
• Advanced funds must be appropriately safeguarded and managed, and expenses must be properly recorded and cleared pursuant to Policy 3305 Expense Advances and Procedure 3305 PR.01 Spend Authorization Process for Expense Advances.   

B. Out-of-Pocket Reimbursement 

In rare instances where other methods are impossible or impracticable, travelers may utilize personal funds for expenses.  In such instances, individuals may seek reimbursement in accordance with Procedure 3215 PR.02 Yale Expense Management (Pcard and Out-of-Pocket Expenses).

1. Please note that the State Department International Travel site provides information on currency restrictions for travel to and from a country by a U.S. person.  In addition to these restrictions, in some cases, a traveler may be required to declare to the customs office a cash amount over a specific threshold amount.  Finally, it should be noted that many countries further limit the amount of cash that a traveler can carry out of a country to the amount he or she declared upon entry to the country.

2. Certain restrictions apply to transfers to countries against which the United States maintains an economic or trade sanction.  For additional information on these restrictions, please contact the Treasury Manager (treasury.manager@yale.edu) or visit Office of Foreign Assets Control (“OFAC”).