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3401 PR.06 Requesting a Wire Transfer
July 20, 2018
This procedure has been updated to accommodate Workday Financials business processes and terminology. Please note the effective revision date.
- Please note current countries subject to OFAC sanctions (Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine/Russia).
- All Wire instructions must be sent to email@example.com for existing suppliers or submitted with the New Supplier Request when setting up a new supplier.
This procedure provides guidance with respect to domestic and international payments made via wire transfer. A wire transfer is an acceptable form of payment for amounts of $100 or more which cannot be made via ACH, SUA, check, or purchasing card. Payments to U.S. payees are generally not allowed to be paid via Wire Transfer.
Please submit instructions to firstname.lastname@example.org if the supplier exists. If the supplier is not listed, complete the New Supplier Request form in Workday. This includes the supplier’s Wire account name as it is known by the receiving bank, a Society for Worldwide Interbank Financial Telecommunications (SWIFT) code, and International Bank Account Number (IBAN) number for all European Banks. The proper Wire instructions must be added to the supplier setup before Accounts Payable can process the Wire.
If funds are to be wired in foreign currency, you must inform Supplier Compliance of the appropriate currency to be used when sending the wire banking instructions.
Note: Supplier wire instructions must be submitted on their bank letterhead.
A bank confirmation of wire instructions is required to be attached to the supplier setup. The confirmation can be a copy of the bank statement header or a bank letter.
Complete Form 3401 FR.01 Wire Payment Setup and make note of the following:
- Payment should be in the currency stated on the invoice or contract.
- Supplier Name and the Bank Account Name must be the same and must match the supplier information.
Generally, the University will pay the supplier that provided the services or goods, not a third party: Payment to a third party is permitted only when it is expressly provided in the agreement for the provision of services or goods.
- Required Bank Account Information:
- U.S. Bank Account – Please do not send via wire transfer, send as ACH. Contact Accounts Payable with the ABA Number (i.e., routing number) and Bank Account Number
- United Kingdom and Europe Bank Accounts – SWIFT number (BIC Code) and International Bank Account Number (IBAN)
Note: The Society for Worldwide Interbank Financial Telecommunications (SWIFT) number is an internationally-recognized identification code for banks around the world and are most commonly used for international wire transfers. It’s also known as a Bank Identifier Code (BIC).
- Other Non-U.S. Bank Account – SWIFT Number, Bank Account Number and Bank Branch information (i.e., bank name and address)
- Please confirm wire instructions with the supplier. It can be very difficult to retrieve funds outside the United States in the event of incorrect wire instructions.
A. General Requirements for all Wire Transfer Requests:
- Original authorized Non-PO Invoice; see Procedure 3401 PR.04
Note: A Non-PO Invoice is an invoice not associated with a purchase order. Typically, the amount is < $2,000 and sent directly to department by the supplier for payment approval.
- Appropriate backup for payment (this would have been attached to a Check Request in the past)
B. Additional Requirements and Restrictions for International Wire Transfer Requests Only
The following additional requirements and restrictions may apply to payments to International Payees:
- Original wiring instructions:
In order to minimize errors in processing international wires, attach the email, fax or original invoice that includes the supplier’s wiring instructions.
- Required Documentation and U.S. Tax Withholding/Reporting:
U.S. immigration regulations impose restrictions on certain payments to non-U.S. payees. Further, the Internal Revenue Service (IRS) requires the University to report payments and withhold federal income tax on certain payments to non-U.S. payees.
Please refer to Policy 3401 General Payment Policy and Payment Requests for International Payees for payment restrictions, required documentation and tax withholding and reporting requirements for payments to international payees.
- U.S. Office of Foreign Assets Control (OFAC) Restrictions:
Yale is prohibited by law from engaging in certain business and financial transactions with designated countries, entities and individuals. Designated countries, entities and individuals, as well as a description of the prohibited transactions, are available at the OFAC website.
Current countries subject to OFAC sanctions are Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine/Russia.
A transfer of funds may constitute a prohibited transaction. Please contact the Yale’s Guidelines on Contracts and Export Controls to review possible transactions which may be subject to OFAC regulations. This review should occur prior to procuring services or goods and prior to submitting a request for payment.
- Individuals traveling internationally on University business:
Please note that in addition to risks involving personal safety, most countries limit the amount of cash (including, currency, travelers checks, gold coins and bars, bonds and other negotiable instruments) an individual may carry into a country and require a customs declaration upon arrival or departure. These limitations vary from country to country. Making payments via a wire transfer for certain expenses (e.g., lodging, program costs) may minimize the need to carry large amounts of cash while traveling.
Once all completed forms are attached to your Supplier Invoice Request and you have obtained a WR number from the TCN generator, submit the request.
Note: The WR number is the equivalent of a CR number but indicates that the payment method is a Wire Request rather than Check, ACH, or SUA.
Once submitted, the request will route within your cost center for the required approvals. Once the approvals at this level are completed, the transaction will route for all additional approvals necessary.
A. Initiating and Approving Payment Request
The Accounts Payable department reviews and processes all Requests for Wire Transfer and will obtain the required approvals by Accounts Payable and the Controller’s Office. Accounts Payable will also forward the appropriate requests to the Tax Department to determine any withholding tax and rate required.
Once the Request for Wire Transfer is approved and processed, Accounts Payable will send the request to Treasury Services to initiate the payment.
B. Processing Time
Completed Requests for Wire Transfer submitted with required documentation will generally be processed and paid within 4 business days of receipt by Accounts Payable for transfers of U.S. currency and 6 business days for transfers of foreign currency. Requesters should allow adequate time for processing the request.
Important Note: Requests for Wire Transfer that are incomplete or do not include required documentation will be delayed pending completion of the form or receipt of required information. Requests with incorrect information (e.g., bank account number, amount, bank account name) will also be delayed. If a Request for Wire Transfer is incomplete, incorrect or missing documentation, the request will be returned to the originator for completion.
Note Change in Process: all Wire instructions must be sent to email@example.com for existing suppliers or submitted with the New Supplier Request when setting up a new supplier.
Department administrators may contact the YSS Finance Service Center at firstname.lastname@example.org or 432-5394 in order to follow up on the status of a wire transfer request. Status inquiries are encouraged only after the normal processing time of 4 to 6 business days from submission of the request has elapsed.
C. Confirmation of Payment
Upon request, Treasury Services can provide confirmation that the funds have been transmitted by the University. The payment confirmation does not, however, verify receipt of funds by the supplier’s bank or bank account. Because Treasury Services cannot confirm that transmitted funds have been received by the supplier, a business administrator may wish to contact the recipient of the funds to ensure payment has been received. The confirmation provided by Treasury Services often facilitates the posting of funds to the recipient’s bank account.
Note: Funds transferred to non-U.S. banks may not be posted to a recipient’s account for several days or weeks.
D. International Wire Transfer Fees and Charges
Due to the administrative costs associated with international wire transfers, the University assesses a fee of $100 for each international wire transfer that is returned for incorrect wire instructions or must be investigated because the supplier claims non-receipt. This fee is charged to the department; it is not deducted from the total wire transfer amount.
A non-U.S. bank that receives funds may charge a fee for processing the wire payment. This fee is generally deducted from the wire transfer amount unless the supplier has a separate payment arrangement.
In addition to U.S. withholding and reporting requirements, the funds may be subject to federal, state or local fees or taxes in the recipient country.