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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4545
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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My friend from Scotland who is a gas and oil contractor has

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My friend from Scotland who is a gas and oil contractor has a contract in Kuala Lumpur, Malaysia with Petronas. Petronas issued him an HSBC Bank draft with more than 2 million dollars. He deposited the HSBC bank draft at the HSBC Bank in Kuala, Lumpur. He was charged tax of more than $8,000.00 and several bank fees of more than $ 8,000.00 which includes the money laundering fee. He could not withdraw money because of some additional fees. Help

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Rakhi Vasavada :

I have been going through your question in detail. It is very common for the banks to have various checks and measures and have various reporting requirements to monitor possible money laundering activities.

Having said this, in your situation, this appears a normal business transaction, subject only to some of the internal reporting requirements by the bank. Every bank has its own charges and fees. However, in your case, at least it cannot be subject to any kind of taxes. It can be subject to some fees such as clearing fees (or some call it collection fees) but certainly not taxes.

Rakhi Vasavada :

Second issue is that your friend is not being able to withdraw money as well, which just doesn't go with me. Merely the fees cannot be the reason of not being able to withdraw.

Rakhi Vasavada :

The best thing, that I would advise you is to ask your friend to write a detailed communication to the HSBC, Kuala Lampur and demand a written explanation of itemization and break up of fees and charges. Also demand a detail written explanation as to why the bank is prohibiting him from withdrawing money.

Rakhi Vasavada :

I am sure this is nothing but a routine business transaction that you friend has done. This may be certainly be subject to surveillance and various reporting requirements but certainly not subject to any taxes (other than minor charges) and not tax at all.

The explanation from the bank would help you better understand what the exact problem is.

Rakhi Vasavada :

I a sure this would help.

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Warm Regards

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