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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4543
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I have some money in the US that I would like to have in

Customer Question

I have some money in the US that I would like to have in another country. I happen to know somebody that I trust who has the opposite situation, for the same amount. I would like to 'trade' funds with this person. We both have bank accounts in both countries
in question. 1) Is it illegal to simply have this person transfer to me while I transfer to them, within the same country where the monies are currently in? That way we would avoid internal wire fees, as well as the currency exchange spread. 2) Provided the
above is OK, will the other person have to pay taxes in the US for the amount that I'm transferring, even though it's a permutation rather than actual income?
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

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

Let me come to the point. First, there is nothing illegal in what you are contemplating to do. You CAN transfer money to him and he CAN transfer money to you. So long as you do all these transfers in legal official channel there is nothing wrong with it.

Secondly, I would suggest you to use official channels -- i.e. either wire or transfer through Western Union, etc., depending upon the amount. I would suggest you to keep this transaction through official channel so that it does not look as if you are laundering money. If these are official money -- use official channels to transfer.

Thirdly, the recipient will NOT pay any tax in US from what I understand from your situation. It is NOT his income and therefore there is no tax incidence.

I am sure this would help.

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Warm Regards,