Temporary bank account

CiniO

I was chatting to person (from EU) who came to Ireland for 2 months for seasonal job and I wasn't sure how to advice him.

He currently doesn't hold bank account in Ireland so his wages are paid by cheques.
Now questions:

1. He was refused to cash those cheques in few banks, as he doesn't have an account there. Is this normal, and if so, where can he cash those cheques?

2. Due to (1.) he though maybe to open bank account here, especially that once he will finish his job, upon returning P50 revenue will refund him tax overpaid, and easiest will be to have it transferred to bank account - but that will be probably few weeks after he is gone from here, so will there be any way to close bank account when he can not attend a branch personally as he will be gone home abroad?

3. If he decides to leave bank account open, without any funds - what will happen in relation to fees? Will fees charged every quarter cause account to go into overdraft and cause him trouble for future?

Yggr of Asgard

If he is from the EU, why is he not using his bank account in the country he is from?

With SEPA that should not be problem for his employer and Revenue (for the tax refund).

delahuntv

As above - use bank from his own country. May take one extra day for funds to be in.

He won't have any additional charges using his debit card for purchases or withdrawls.

JTMan

As his bank account is in the SEPA zone, there is, in theory, no need for another Irish SEPA account.

The problems he will encounter are:
- Not being able to cash the cheque unless he is physically back home.
- His local bank may not accept Irish cheques.

What he should do:
- Contact his employer, give his local IBAN and BIC and ask for the payment to be made electronically. Destroy the cheques.
- If the employer refuses to pay electronically, then see if his local bank will accept Irish cheques.
- Worst case, open an Irish bank account with PTSB. There will be no fees provided you deposit at least 1,500 EUR per month. He may need to wire money back and forth to avoid the fees.

Tow

delahuntv wrote: »

As above - use bank from his own country. May take one extra day for funds to be in.

It could actually be quicker.

CiniO

His employer says she can't pay his wages to foreign account.

delahuntv

CiniO wrote: »

His employer says she can't pay his wages to foreign account.

Employer is wrong - employer needs to understand why sepa was brought in.

amdublin

delahuntv wrote: »

Employer is wrong - employer needs to understand why sepa was brought in.

SEPA makes the payment easier to do/more efficient.


Does not mean the employer has to do it.


From a money laundering perspective it would be best for the employer if the employee had an account in Ireland.


I would think it would be best if the employee opened an account.

Toots

If he wants to cash his cheques he needs to bring them to the bank and branch where the employer holds her account. Does he have ID and proof of address?

CiniO

delahuntv wrote: »

Employer is wrong - employer needs to understand why sepa was brought in.

amdublin wrote: »

SEPA makes the payment easier to do/more efficient.


Does not mean the employer has to do it.

So this get's interesting now.
Is employer obliged to pay to foreign bank account or not then? Anyone could point to any link?

From a money laundering perspective it would be best for the employer if the employee had an account in Ireland.

I actually can't think of any money laundering scenario possible by paying to foreign account.

I would think it would be best if the employee opened an account.

He woulnd't mind, bus as I initially said, he is not sure what will happen once he doesn't need this account anymore later this year, and he will be physically abroad so won't be able to pop into a branch to close it.

CiniO

Toots wrote: »

If he wants to cash his cheques he needs to bring them to the bank and branch where the employer holds her account.

That sounds very reasonable.
Is that bank required to cash such cheque?

Does he have ID and proof of address?

He has ID.
He lived on employer premises, so I assume his employer can issue a letter confirming he lives there.

Nervous Wreck

amdublin wrote: »

SEPA makes the payment easier to do/more efficient.


Does not mean the employer has to do it.


From a money laundering perspective it would be best for the employer if the employee had an account in Ireland.


I would think it would be best if the employee opened an account.

This. There's no obligation on the part of the employer to pay to a foreign (or domestic) account. SEPA just means that financial institutions have to treat foreign transfers within the Eurozone the same as domestic transfers.

Money laundering concerns are probably the reason some companies won't do it, yeah.

delahuntv

I don't understand money laundering issues, they'd only arise if the employer was dodgy or if payment was made without deducting cash.

A regular employer, deducting paye prsi and having a normal paper trail should have no concerns whatever about transferring to any other bank within the eu. - I had a german girl working for me last Christmas for 2 months and paid into her German account.

As for cashing in the bank it is drawn on with id - yes, that's probably the best for current situation.

He could also open an account there too - there's no excessive charges and being employed by another customer of same branch would make it even easier.

CiniO

Nervous Wreck wrote: »

This. There's no obligation on the part of the employer to pay to a foreign (or domestic) account. SEPA just means that financial institutions have to treat foreign transfers within the Eurozone the same as domestic transfers.

Does it make any difference that his home country is not in EuroZone?

Money laundering concerns are probably the reason some companies won't do it, yeah.

I honestly can't think of any money laundering concerns.

Fred Swanson

This post has been deleted.

Nervous Wreck

CiniO wrote: »

Does it make any difference that his home country is not in EuroZone?


I honestly can't think of any money laundering concerns.

Would be less likely again as there are charges for SWIFT transfers. But again, they're not obliged.

I can't think of ML concerns either tbh but I don't work in AML so I'm sure there's loads that'd go flying over my head.

Then again, could just be arbitrary company policy.

CiniO

Nervous Wreck wrote: »

Would be less likely again as there are charges for SWIFT transfers. But again, they're not obliged.

Would not all EU transfers now be SEPA no matter if to Eurozone or not Eurozone country?

Fred Swanson

This post has been deleted.

delahuntv

Not from eurozone would mean extra currency charges.
Best option is to open basic account here and close it when leaving.

Kbc do accounts online and you just have to either get copy if passport & proof of address stamped in garda station or bring them into a kbc hub.

Account number and debit card are with you in a week.

CiniO

delahuntv wrote: »

Not from eurozone would mean extra currency charges.

Not necesserily.
Most non-euro zone EU countries, have banks which offer account in € currency so if you transfer to such account, there won't be any currency conversion.

Best option is to open basic account here and close it when leaving.

Kbc do accounts online and you just have to either get copy if passport & proof of address stamped in garda station or bring them into a kbc hub.

Account number and debit card are with you in a week.

Can you close KBC account remotely when abroad - f.e. through phone, internet or just regular post letter?
Or can you close any other bank's account that way?

Toots

CiniO wrote: »

That sounds very reasonable.
Is that bank required to cash such cheque?


He has ID.
He lived on employer premises, so I assume his employer can issue a letter confirming he lives there.

Providing the cheque isn't crossed 'account payee only' or something like that, then they should cash it for him. In terms of proof of address, a letter from his employer most likely won't suffice. Does he have a PPSN or anything from revenue with his address on it?