REMITTING BANK Meaning and
Definition
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A remitting bank, also known as a sending or originating bank, refers to a financial institution that initiates the transfer of funds on behalf of a customer or account holder. The primary function of a remitting bank is to facilitate the transmission of funds from one party or entity to another, either domestically or internationally.
In the context of international transactions, the remitting bank acts as an intermediary between the sender and the recipient, ensuring the secure and efficient transfer of funds across borders. The remitting bank typically deducts the transferred amount from the sender's account and arranges for its delivery to the designated recipient, either directly or through correspondent banking relationships.
Remitting banks play a vital role in the global financial system by facilitating various types of payments, including personal remittances, business transactions, and trade settlements. These banks ensure compliance with regulatory requirements, such as anti-money laundering (AML) and know your customer (KYC) regulations, during the funds transfer process.
Additionally, remitting banks may provide additional services, such as foreign exchange conversion and advice on transaction fees and charges. They are responsible for verifying the authenticity and accuracy of the transaction instructions, including verifying the recipient's information and ensuring sufficient funds in the sender's account to cover the transfer.
Overall, the remitting bank serves as a trusted intermediary, executing payment instructions and assisting customers in their financial interactions, both domestically and internationally.
Common Misspellings for REMITTING BANK
- eemitting bank
- demitting bank
- femitting bank
- temitting bank
- 5emitting bank
- 4emitting bank
- rwmitting bank
- rsmitting bank
- rdmitting bank
- rrmitting bank
- r4mitting bank
- r3mitting bank
- renitting bank
- rekitting bank
- rejitting bank
- remutting bank
- remjtting bank
- remktting bank
- remotting bank
- rem9tting bank
Etymology of REMITTING BANK
The word "remit" comes from Latin "remittere" which means "to send back" or "to give up". The word "bank" originated from Italian "banco", meaning "bench" or "counter", which referred to the counters where moneylenders conducted their transactions. Combining these two terms, the term "remitting bank" was coined to describe a bank or financial institution that sends money or makes a payment on behalf of a customer to another bank or recipient.
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