Foreign Bank Draft - Lodge?

G

Gordon Gekko

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Hi,

If I’m given a bank draft from a Portuguese bank, can I lodge it in Ireland?

Many thanks,

Gordon
 
The bank will most likely send it for collection rather than just lodging it straight in to account but you never know!
 
The post it off to the bank in Portugal and wait to get funds back, can take a few weeks and usually a nice charge too for it! Now it's a while since I dealt with that so maybe there is some new online system for doing it rather than actually posting the physical draft, one would hope but that used to be the way anyway.
 
Unfortunately there's no electronic clearing in the EU. Yes, you can lodge it here, but they physically send the draft back to the bank that issued it. I'm not sure about Portugal, but with France for example it can take 20 working days, because the draft goes back to the physical branch it was written by in most cases.

Charges can be high, and the bank might not be able to tell you up front how much it will be.

If possible, it's far more efficient to get a SEPA transfer.
 
Monbretia said:
so maybe there is some new online system for doing it rather than actually posting the physical draft, one would hope
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Unfortunately, things haven't moved forward. I recently had to map out the route a French draft took, and it's shocking to see how many hands it had to pass through to get cleared funds.
 
Hello,

A friend of mine has Portuguese interests and also has a banking background - they've indicated that the process is very similar to France, and suggested it could take up to six weeks, for collection. He mentioned a fee of €35 being charged last year, for a relatively modest size draft, drawn on a Portuguese Bank (along with the other party having paid €10 to get it drawn in Portugal, to begin with).

Between the delay and likely cost, you really are better off avoiding this method, if possible, Gordon.
 
Thanks Mr Earl, and everyone else. My aunt and uncle have sold a villa. They don’t have a bank account in Portugal, but I do. The sale can close fine without them there (due to Covid) via a Power of Attorney. We’re just trying to figure out how to get the money. The closing can’t be done via bank transfer even though the deposit is being paid that way. Apparently it has to be a bank draft. The estate agent is saying that they have a client account and could take the proceeds and then transfer them to Ireland but we’re very wary of doing that given the amount involved. Ideally the funds would be lodged into my account but the other options we’re exploring are opening an account for them locally or FedExing the bank draft to Ireland. Neither of those options are straightforward by the sounds of it. Has anyone any other suggestions?
 
It seems odd that their legal representative, can't receive the sale proceeds into their client account, then transfer them to Ireland, but anyway..

If the funds are that significant, and you've a bank account in Portugal, then I think I would fly to Portugal and lodge it directly, myself.

If nothing else, it removes the significant delay, and frustration for your family (which will ultimately impact on you), during the waiting period.

Unfortunitely, that then brings potential requirements to self isolate, into the conversation.
 
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Gordon Gekko said:
The estate agent is saying that they have a client account and could take the proceeds and then transfer them to Ireland
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Hi Gordon

Are they using a solicitor in Portugal? Could the bank draft not be made payable to the solicitor and she could transfer the proceeds to Ireland.

The bank draft should be fine. But drafts can be stolen or forged. Presumably the Portuguese solicitors have figured a way around checking this.

Brendan
 
MrEarl said:
It seems odd that their legal representative, can't receive the sale proceeds into their client account, then transfer them to Ireland, but anyway..

If the funds are that significant, and you've a bank account in Portugal, then I think I would fly to Portugal and lodge it directly, myself.

If nothing else, it removes the significant delay, and frustration for your family (and by extension, for you!), during the waiting period.
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A seller doesn’t need legal representation in Portugal, so they don’t have a lawyer. It’s a really efficient process done through one State controlled “advocat” who’s paid by the buyer. The problem is they’re older and one of them is in Covid’s target market, so travelling over isn’t really an option. I might see if my bank can open an account for them remotely. Or if the Power of Attorney can be broadened to allow me to go and receive the money.
 
I don't know Portugal specifically but I know the notary system in some other civil-law countries.

Basically the notary holds the funds in a client account and releases them when the contract is signed. Paid by the buyer but basically acts for both parties.

Can the "advocat" not receive the funds from the purchaser (by whatever means) and then remit them to your aunt and uncle in Ireland via a SEPA transfer?

@Gordon Gekko - if your account is used you may run into money laundering controls as it could appear that you are fronting for someone else.
 
Gordon Gekko said:
Thanks, yeah, a bank’s gonna think it’s dodgy. I’ll investigate further.
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I dunno how often you use your bank account there. But assume the account is not heavily used and then within a few days there is six figures going in and six figures going out, cross border as well. It could raise flags.

So I think it's cleanest for your relatives to keep it in their own names the whole time.
 
NoRegretsCoyote said:
I dunno how often you use your bank account there. But assume the account is not heavily used and then within a few days there is six figures going in and six figures going out, cross border as well. It could raise flags.

So I think it's cleanest for your relatives to keep it in their own names the whole time.
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I use it pretty regularly and have a relationship manager who I actually know quite well so I could speak with her. I’ve utility bills on direct debit for their property already.
 
lodge to your account in Portugal, transfer via currencyfair to your irish account and then transfer to your aunt and uncle in Ireland?
 
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