Pay European companies with (NON CRS) UAE bank account - problem ?

[bigbite100]

Hello,

Someone would like to pay invoices for his parents. They have invoices from companies (germany) for renovation of their home (15k and 35k €). He would like to pay these invoices with a Non CRS UAE bank account.

1) Will these trigger any problems regarding CRS / reporting ?
2) Might the german banks which will recieve the money ask for source of funds or report the transaction?
3) Since it is a Non CRS bank account (Dubai resident), will this put the account "on the map" for the EU authorities?

 

[Fred]

Hello,

Someone would like to pay invoices for his parents. They have invoices from companies (germany) for renovation of their home (15k and 35k €). He would like to pay these invoices with a Non CRS UAE bank account.

1) Will these trigger any problems regarding CRS / reporting ?
2) Might the german banks which will recieve the money ask for source of funds or report the transaction?
3) Since it is a Non CRS bank account (Dubai resident), will this put the account "on the map" for the EU authorities?

Did so - no issues.

An medium size external company usually never cares from where the money comes as long as it comes and usually medium sized Companies in Germany anyway work with Deutsche/Commerzbank or a bigger Branch of a Sparkasse / Volksbank.

If it's a small village operation of a Sparkasse / Volksbank in a 1000 people village in Germany and you are THAT GUY who sends actually once in 10 years a transfer from UAE - it might be better to gift the mentioned amount to your parents as you as the child can gift 20-30k EUR every 10 years to your parents tax free.

Don't do anything if you run a Paper Setup in the UAE while living in the to be renovated house of your parents - take your parents to a Dubai Holiday and return with 10k EUR Cash each.

 

[bigbite100]

Did so - no issues.

An medium size external company usually never cares from where the money comes as long as it comes and usually medium sized Companies in Germany anyway work with Deutsche/Commerzbank or a bigger Branch of a Sparkasse / Volksbank.

If it's a small village operation of a Sparkasse / Volksbank in a 1000 people village in Germany and you are THAT GUY who sends actually once in 10 years a transfer from UAE - it might be better to gift the mentioned amount to your parents as you as the child can gift 20-30k EUR every 10 years to your parents tax free.

Don't do anything if you run a Paper Setup in the UAE while living in the to be renovated house of your parents - take your parents to a Dubai Holiday and return with 10k EUR Cash each.

Dont know if its a small branch or how the bank might react - what would be the worst case? since you recommended to gift instead of sending it to a small branch?

 

[Fred]

Dont know if its a small branch or how the bank might react - what would be the worst case? since you recommended to gift instead of sending it to a small branch?

Worst Case a small village Volksbank or Sparkasse can ask why they get Money from the UAE - Family support from the son which lives in UAE - "Thank you - Money is credited".

That's due to the fact that it comes through SWIFT - while when you send via SEPA - which some UAE Banks can do as well as "Quick Remmitance" - it's usually not even for a small village Volksbank worth a request.

Plot twist: any doubts setup your parents a dependent visa - open a UAE Personal Bank Account - send the funds there - take out by ATM.

 

[bigbite100]

Worst Case a small village Volksbank or Sparkasse can ask why they get Money from the UAE - Family support from the son which lives in UAE - "Thank you - Money is credited".

That's due to the fact that it comes through SWIFT - while when you send via SEPA - which some UAE Banks can do as well as "Quick Remmitance" - it's usually not even for a small village Volksbank worth a request.

Plot twist: any doubts setup your parents a dependent visa - open a UAE Personal Bank Account - send the funds there - take out by ATM.

Hi @Fred , what do you think about this?

"Foreign transfers of 12,500 euros or more must be reported to the Deutsche Bundesbank in accordance with Section 11 of the Foreign Trade and Payments Act (AWG)."

Isn´t that a risk?

 

[bigdaddyleon]

In my opinion, the easiest way would be a transfer between you (as an individual) and your parents preferably as SEPA and advantageously through the same bank.
I had the experience that smaller banks like the sparkasse in smaller communities are much friendlier & look less at transfers.

Otherwise services like Western Union with cash withdrawal would also be possible.

 

[apres777]

Hi @Fred , what do you think about this?

"Foreign transfers of 12,500 euros or more must be reported to the Deutsche Bundesbank in accordance with Section 11 of the Foreign Trade and Payments Act (AWG)."

Isn´t that a risk?

You can kindly ignore this, have been dealing with several German Bank Accounts / resident bank accounts and never "reported" this. (5+ years, + 4000 transactions).

 

[johnwickert]

1. It is possible that the payment could trigger CRS reporting, as the banks involved may be required to report the transaction to the relevant authorities if certain criteria are met.
2. The German banks receiving the payment may ask for documentation or information regarding the source of funds, especially if the amount is significant. This is a routine practice to prevent illicit activities.
3. While the UAE is not currently part of the CRS system, this does not necessarily mean that the bank account will not be monitored or flagged by EU authorities.