Eduardo Pontaoe
7 July 2006
Marvin P. Flores:
The 25 to 30 days for your check to clear your bank while already deducted from your account is one of international banking regulations to prevent fraud. How can the bank in the Philippines know that you got sufficient amount in your account to cover such amount.
The amount that was deducted from your account was a transaction between you and your bank and not the bank where you got an account in the Philippines. Note that your issued check originates in the US with your address.
If you have questions about your bank’s (Philippines) policy of clearing foreign checks, you check. Financial institutions are not obligated to post their policy on clearing foreign checks. There is no standing policy that you will get your money at once when the check clears.
So, the wait though your checks clears in 4 days. Outright cashing of checks drawn on American banks is done under tight scrutiny of the clearing house which is the Federal Reserve Bank in the state where your check originates.
However, with Federal Reserve’s Regulation CC which requires US and foreign banks in the timely disclosure stating when funds of customers are available, bureaucracy overwhelms protocols.
Be aware also that if a check is submitted for collection, on any foreign checks, you will have to pay a collection fee.
Well, Mr. Flores, I recommend that if you are receiving defined-guaranteed benefit or Social Security payments you are better of to have them deposited directly in your account in the Philippines.
As a US expatriate living in the Philippines, it is to your advantage.
So much so for personal checks.
