Some people assume that there are no other ways to send and receive money abroad apart from Moneygram, Western Union and other third party money transfer agencies when it comes to Africa and particularly Nigeria. In fact most people haven’t heard about “bank to bank wire transfer”! In the other hand some people neglect bank wire -as it is called – because they don’t know if it will actually work or if it is trusted (i.e. someone’s money will be lost along the line).
From my experience, sending and or receiving cash abroad through bank wire is very cute. The speed, the attention and the trust are all there. My money never got lost in any transaction, the only problem I once encountered was in early 2011. Someone sent me about $500usd from U.S.A. The account number I gave him was incorrect, the money was transferred to my bank (Fidelity bank plc.) but they couldn’t find any records of account number so after 5 days they sent the money back to the sender who now notified me. I supplied him with the correct account number and he sent the money again, I received the money in my bank account within the next 24hours!
So next time you want to receive money from abroad, go to your bank and request for their USD, EURO or POUNDS STERING bank transfer details. You will be given a piece of document that contains the bank transfer information such as: official bank name, SWIFT code, bank address, sort code or ABA code(called ABA code when transferring USD or dealing with U.S.A banks). Forward the information along with your bank account to the sender. He/she will have to approach his or her bank, request for a bank wire transfer with regards to your details. When the request is completed and the money is transferred, you will receive the money in your account within 48 hours but some transfers may take up to a week depending on the bank or country.
Most banks in developing countries such as Nigeria don’t have the power to receive/send money abroad on their own, they use the services of a “correspondent bank“, “affiliate bank“, or “intermediately bank“. By doing this, they are regarded as a “beneficiary or receiving bank“.
A correspondent/affiliate/intermediately is a normal commercial bank, usually situated in developed countries like U.K and U.S.A, it that facilitates the sending or receiving of international money transfers for their client banks called “beneficiary banks”. When someone sends money via a correspondent bank, the money is shifted to the account of the beneficiary bank which exists in the correspondent bank. The beneficiary bank withdraws the money and pays it to the local bank account of the receiver of the money.
If a bank uses a correspondent bank for international transfers, the information they give to their customers for receiving international bank transfers will look like this:
Name of bank: CITIBANK (The name of their correspondent bank).
Address of bank: #500 St. John Avenue, New York City, New York, Canada (Address of the correspondent bank; city, state and country)
SWIFT code: CITIUS33 (SWIFT code of the correspondent bank).
Account number: 33033303 (Account number of the beneficiary bank in the correspondent bank).
Account name: Fidelity Bank Plc. For Further Credit To 11122233 (Account name of the beneficiary bank in the correspondent bank + For Further Credit + the receiver’s local bank account number where the money will be forwarded.)
The above is an example of the details that will be given to you by a bank when you want to receive international bank transfer/wire if your bank uses correspondent bank.
Different banks in Nigeria use different correspondent banks and while some of them may even have the capacity to host a bank wire directly without the need of a correspondent bank.
The cost of making a bank wire transfer vary by bank, country and amount transferred, some banks may not charge a penny while others may charge for as high as $70USD for a single transaction. The fees for a bank transfer (if any) are usually deducted from the transferred money.