International Transfer Options

I have to pay off a debt in USD (to a USA resident). He has asked for a cashiers cheque in either EUR or USD. This raises a few questions.

I take it it's better to pay in EUR as I can take the spot conversion rate in the market and not actually have to pay the spread and commission on 'buying' USD.

Is there a limit to how much a cashier cheque can be before it triggers AML / Tax issues for me ? (we're talking > €10k).

Are cashier cheques subject to commission or a fixed cost (AIB).

I will have no evidence that the debt was repaid, should I push for US bank details and effect a money transfer ? Would this create a retrievable paper trail should the recipient claim the money was never received.

if he accepts euro, surely he will not get the USD value he is due and will raise it with you, contact your ban here and find out how much euro the USDs will cost and also call currency.ie

Well if he was insisting on being paid in USD then I'd be stuck with the costs of purchasing that amount (in USD) but as he's happy to receive the EUR equivalent then should he lose money on it's exchange to USD that's his issue, IMO.

Rusty Cogs said:

... He has asked for a cashiers cheque in either EUR or USD. ...

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Is this the same as a bank draft?

Rusty Cogs said:

... I take it it's better to pay in EUR as I can take the spot conversion rate in the market and not actually have to pay the spread and commission on 'buying' USD...

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It'll certainly be cheaper for you to get euro than US$. He should be delighted to get euro as the rate vs US$ is still good.

Rusty Cogs said:

... Is there a limit to how much a cashier cheque can be before it triggers AML / Tax issues for me ? (we're talking > €10k)...

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You will probably be asked to explain the purpose of the draft (if this is what a cashier's cheque is) and when filling in the application form you will be asked for payee details. Not sure about the limit.

Rusty Cogs said:

... Are cashier cheques subject to commission or a fixed cost (AIB). ...

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Both - there is a minimum fixed cost for bank drafts (€2.50 ?) and then a sliding scale depending on value

Rusty Cogs said:

...
I will have no evidence that the debt was repaid, should I push for US bank details and effect a money transfer ? Would this create a retrievable paper trail should the recipient claim the money was never received.

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With a bank draft you will have a copy of your written application with the payee identified, you will get a receipt from the bank for the draft showing value and commission(s) paid. You can also take photocopies of the draft and send the original by courier / registered post so it has to get a delivery signature.

You could also fax a copy of the draft in advance and ask for a fax by return stating that "bank-draft no 123456 drawn on AIB High St Ireland in the amount of €4.75m is acceptable in full settlement of the debt of US$900m and the payee agrees to pay related currency conversion costs and bank processing charges", or other more legal words.