# Transfering 30K to my sisters current account



## hakouna (2 Nov 2006)

Hi , 

My sister (Non national) used to visit me in Ireland over the last few year , and she finally opened a bank account . I want to move 30K of my savings to her account as this money used to be hers but I was saving it to her over time . We agreed that it's time to return it back into her account.
I spoke with the bank and they seems OK with this action . Do you think I am doing anything illeagal here as I heard one day that I should not lodge more than 12K in any account without being questioned ?

Regards
HK


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## ClubMan (2 Nov 2006)

Transferring more than c. €13K is not illegal in itself - it's just that such transactions must be checked under the money laundering legislation. If there is nothing untoward going on then you have nothing to worry about other than a possible bit of bureaucracy.


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## hakouna (2 Nov 2006)

Could you please advice on what sort of checking they would ask me for ? The money will be transfered from my Irish bank account , and the money was built up over the time . Should I mention the story that she was leaving money every time she visits me ,...etc ? although I mentioned that to the bank verbally good few times before but I am not sure if they still remember .
thanks in advance


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## cjh (2 Nov 2006)

You could just move it in three lots of €10,000?


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## CCOVICH (2 Nov 2006)

cjh said:


> You could just move it in three lots of €10,000?


 

This could still constitute a suspicious transaction-staff are supposed to look at a number of similar events.


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## CCOVICH (2 Nov 2006)

hakouna said:


> Could you please advice on what sort of checking they would ask me for ? The money will be transfered from my Irish bank account , and the money was built up over the time . Should I mention the story that she was leaving money every time she visits me ,...etc ? although I mentioned that to the bank verbally good few times before but I am not sure if they still remember .
> thanks in advance


 
Was the money always lodged as cash, or was it a cheque, draft etc.

I would have thought that the onus will be on your sister more so than yourself to prove to her bank that the funds are 'clean'.

As your bank have already accepted the funds, they should have satisfied themselves as to the source already, but it is possible that they could choose to do so now.


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## paddyodoors (3 Nov 2006)

The bank won't question the transfer - you both already have open accounts thereby satisying KYC requirements and the money is already in the system - i.e. you are not trying to lodge 30k cash - as CCOVICH says the bank has already accepted the funds. Besides if you do it automatically on line there is noone to ask a question!

As far as the bank is concerned you could be paying for a purchase of a car etc.....

The issue you would have is taxation - gifting 30k - your sister needs to declare that I imagine - prooving it was her money in the first place wont be easy.

Paddy


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## hakouna (3 Nov 2006)

Thanks for all your clarifications .

That's what I was afraid of : "Taxation - gifting 30K" !! I have no clue how tax will look at it . Is it she gifting me or I am gifting her ?

The only prove that this is her money , is that I went to the bank couple of years ago to ask them to open a bank account for her to lodge her money , but they said she should be resident and has pps number , prove of address , ...etc .
They adviced I can put the money in my account and take it off whenever she wants , so I applied for extra ATM card for her to use the money whenever she wants .
This money originally coming for an appartment she used to own back home , she sold it , left part of the money in local bank and get some Euros to cover her trips to Ireland over the years .

Is it better to lodge the money cash ( 10K each time ) to her account than making electronic transfer ? this case it won't be shown where is this coming from ? Then if she is asked she can say that this is coming originally from her saving in home country bank ? - which is all true by the way

sorry for making it long 

Appreciate your support
hk


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## ClubMan (3 Nov 2006)

If beneficial ownership of the money is not changing and it is simply changing hands for some logistical purposes then it would seem to me that there are no tax implications. But I am not a tax expert.


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## extopia (16 Nov 2006)

You could think of it as repaying a loan to your sister.


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## PMU (16 Nov 2006)

I don't think you have a problem on "gift tax",which is really capital acquisitions tax.  AFAIK the threshold above which tax is payable, where the relationship betwen the disponer and beneficiary is sister is over €45,000.  You should confirm this with Revenue. Then just transfer the money.  Actually, just check it out on OASIS


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## extopia (16 Nov 2006)

You don't want to disclose this as a gift when it is not a gift, as it would mean that future "real" gifts would become taxable if the threshhold is reached.


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