The Complete Guide to Transferring Large Sums Internationally
Everything you need to know about moving significant amounts of money across borders: methods, costs, regulations, and expert recommendations
What Counts as a "Large Sum"?
In the context of international money transfers, "large sums" typically refer to amounts exceeding USD/EUR/NZD $10,000. At this threshold, additional regulatory requirements kick in, and the choice of transfer method becomes significantly more impactful on your final costs.
Why $10,000+ Matters
Transfers over $10,000 require mandatory reporting under the Bank Secrecy Act and international Anti-Money Laundering (AML) regulations.
Financial institutions require additional identity verification, source of funds documentation, and purpose of transfer declarations.
Even a 1% difference in exchange rates translates to $100 per $10,000 transferred. For larger amounts, this multiplies dramatically.
Higher value transfers may require additional processing time for compliance checks and approval from multiple departments.
Important: Avoid "Structuring"
Splitting large transfers into multiple smaller amounts to avoid reporting thresholds is illegal and known as "structuring." This practice can result in serious penalties, asset seizure, and criminal charges. Always transfer the full amount transparently.
Transfer Methods Compared
There are several ways to transfer large sums internationally. Each has distinct advantages and disadvantages depending on your specific circumstances.
Traditional Bank Wire Transfers (SWIFT)
Least Cost-EffectiveSWIFT (Society for Worldwide Interbank Financial Telecommunication) is the traditional method banks use for international transfers. While universally accepted and familiar, it's typically the most expensive option for large sums.
Advantages
- •Widely recognized and accepted globally
- •Established infrastructure with proven security
- •Familiar process for most businesses and individuals
- •Direct bank-to-bank transfer creates clear audit trail
Disadvantages
- •Exchange rate markups of 2-5% above mid-market rate
- •Outgoing wire fees: $35-$50 per transfer
- •Intermediary bank fees: $15-$30 per bank in the chain
- •Receiving bank charges: $10-$20 additional
- •Slower processing: typically 1-5 business days
- •Hidden fees often not disclosed upfront
Cost Example: On a $100,000 transfer, a 3% markup plus $100 in fees equals $3,100 in total costs — money that never reaches its destination.
Online Money Transfer Platforms
Mid-Range OptionServices like Wise, OFX, and WorldRemit offer a middle ground between traditional banks and specialized FX providers. They're convenient for smaller large transfers but may have limitations for very high amounts.
Advantages
- •Better exchange rates than banks (0.35% - 2% markup)
- •Transparent fee structure shown upfront
- •User-friendly digital platforms and mobile apps
- •Faster processing than traditional banks
- •Multi-currency accounts for holding balances
Disadvantages
- •Transfer limits may not accommodate very large sums
- •Limited personalized support for complex transfers
- •May not offer forward contracts or rate-locking tools
- •Less established for regulatory/visa documentation
- •Still charge fees, though more competitive than banks
Foreign Exchange Specialists
Recommended for Large SumsSpecialist currency brokers like Currencies Direct, TorFX, and Moneycorp focus exclusively on foreign exchange for businesses and high-net-worth individuals. They typically offer the best combination of rates, service, and expertise for large transfers.
Advantages
- •Exchange rates 2-3% better than banks (0.5-1% markup)
- •No transfer fees on large amounts (typically)
- •Dedicated account manager for personalized service
- •Forward contracts to lock in rates up to 2 years ahead
- •Limit orders and rate alerts for optimal timing
- •Expert market insights and currency risk guidance
- •Same-day or next-day transfers possible
- •Comprehensive documentation for visa/regulatory needs
- •Can save up to 90% compared to bank costs
Disadvantages
- •Requires account setup and verification process
- •Less familiar than using your existing bank
- •May have minimum transfer amounts ($10,000-$25,000)
- •Small fees may apply for transfers under certain thresholds
Cost Example: On a $1,000,000 transfer, saving 2% equals $20,000 more money delivered to your destination. On $15 million (Golden Visa investment), that's $300,000+ in savings versus using a traditional bank.
FX Specialists vs Traditional Banks: A Detailed Comparison
When transferring large sums, the choice between a specialist currency provider and your traditional bank can mean tens or hundreds of thousands in savings.
Exchange Rates
2-5% markup above mid-market rate. On $100,000, you lose $2,000-$5,000 just in the exchange rate.
Transfer Fees
$35-$50 outgoing wire fee + $15-$30 per intermediary bank + $10-$20 receiving bank charge = $60-$100+ total fees
Processing Speed
1-5 business days for international wires. Delays common for compliance checks on large amounts.
Customer Service
Generic call center support. No dedicated relationship manager. Limited expertise in currency markets.
Risk Management Tools
Limited or no access to forward contracts, limit orders, or hedging tools. You transfer at whatever rate is available when you initiate.
Transparency
Hidden costs not disclosed upfront. Difficult to calculate true total cost. Intermediary fees unknown until after completion.
Exchange Rates
0.5-1% markup above mid-market rate. On $100,000, you save $1,000-$4,500 compared to banks.
Transfer Fees
Typically $0 for large transfers. Some may charge small fees (e.g., $15) for amounts under $10,000-$25,000.
Processing Speed
Same-day or next-business-day delivery possible. Faster processing than traditional banks due to optimized networks.
Customer Service
Dedicated personal account manager who knows your needs. Direct phone/email access. Currency market expertise and guidance.
Risk Management Tools
Forward contracts (lock rates 1-2 years ahead), limit orders (auto-execute at target rate), rate alerts, and expert market insights.
Transparency
Complete transparency. All costs disclosed upfront. Exact amount recipient will receive calculated before you commit.
The Bottom Line
FX specialists can save you up to 90% of the total costs compared to traditional banks. On a $1 million transfer, that translates to $20,000-$30,000 more money reaching your destination.
Compliance & Regulatory Requirements
Large international transfers are subject to strict regulations designed to prevent money laundering, terrorism financing, and tax evasion. Understanding these requirements helps ensure smooth processing.
Anti-Money Laundering (AML) Requirements
In 2025, FATF (Financial Action Task Force) revised Recommendation 16 to cover all payment transfers exceeding USD/EUR $1,000. Financial institutions must verify your identity and the legitimacy of your funds.
Required Documentation
- Valid government-issued photo ID (passport, driver's license)
- Proof of address (utility bill, bank statement within 3 months)
- Tax identification number (Social Security Number, IRD number)
- Source of funds documentation (see below)
- Purpose of transfer declaration
Source of Funds Proof
- Bank statements showing fund accumulation
- Employment contracts and pay stubs
- Business financial statements and tax returns
- Property sale agreements and proceeds records
- Investment portfolio statements and sale records
- Inheritance documents and probate records
Higher Scrutiny for Large Amounts
Transfers exceeding $100,000 typically trigger enhanced due diligence. Providers may request additional documentation, conduct more thorough background checks, and require senior management approval before processing. Allow extra time for very large transfers.
Reporting Thresholds
Different jurisdictions have varying reporting requirements that automatically trigger when certain amounts are transferred.
United States (IRS & FinCEN)
- •$10,000+: Transfers involving cash or foreign accounts must be reported via FinCEN Form 114 (FBAR)
- •Any amount: Foreign financial accounts exceeding $10,000 at any point require annual FBAR filing
- •$50,000+: May require FATCA reporting (Form 8938) depending on residency status
European Union (SEPA & CRS)
- •€10,000+: Enhanced customer due diligence required under EU AML directives
- •All amounts: Subject to Common Reporting Standard (CRS) for tax information exchange
- •Instant payments: New 2025 regulations require instant SEPA transfers with payee verification
New Zealand (IRD & FMA)
- •All incoming transfers: NZ financial institutions must report foreign tax residents under CRS
- •$10,000+: Enhanced identity verification and source of funds documentation required
- •Visa-related transfers: Immigration NZ requires comprehensive audit trails for investor visa funds
Why Choose Regulated Providers
Always use providers regulated by appropriate financial authorities. Currencies Direct, for example, is regulated by the Financial Conduct Authority (FCA) in the UK, registered with FinCEN in the US, and compliant with NZ financial regulations. This ensures:
- Your funds are held in segregated client accounts separate from company funds
- Strict compliance with international AML and counter-terrorism financing regulations
- Regular audits and oversight by financial authorities
- Proper documentation trails for visa applications and tax purposes
- Consumer protection and dispute resolution mechanisms
Tax Implications for New Zealand
Understanding the tax treatment of international transfers is crucial for compliance and avoiding surprises from Inland Revenue.
Do You Pay Tax on Money Transferred to New Zealand?
The short answer: it depends on what the money represents. The transfer itself isn't taxed, but the nature of the funds determines whether they're subject to New Zealand income tax.
Generally NOT Taxable
- •Gifts from family: Personal gifts from relatives are typically tax-free
- •Inheritances: Money received from estates is generally not taxable income
- •Capital transfers: Moving your own previously-taxed wealth between accounts
- •Double taxation treaty coverage: Income already taxed in treaty countries may be exempt
- •Non-resident period funds: Money earned while you were not a tax resident (with limitations)
Likely Taxable
- •Employment income: Salary, wages, bonuses earned overseas
- •Investment returns: Dividends, interest, capital gains from overseas investments
- •Rental income: Profits from overseas property rentals
- •Business profits: Income from overseas business operations
- •Pensions: Overseas pension payments (unless covered by treaty)
- •Property sale profits: May be taxable depending on ownership duration and intent
NZ Tax Resident Worldwide Income Rule
If you're a New Zealand tax resident, you must pay tax on your worldwide income. This means income earned anywhere in the world is subject to NZ tax rates (currently 10.5% to 39% progressive rates as of 2025).
However, NZ has double taxation treaties with many countries. If you've already paid tax on income overseas, you may be able to claim a foreign tax credit to avoid paying tax twice on the same income.
Reporting Requirements
If you receive any overseas income (even if not taxable), you must complete an annual tax return in New Zealand. Inland Revenue may request documentation of the transfer's source and nature. Keep comprehensive records including transfer receipts, bank statements, and source of funds documentation.
NZ financial institutions also report foreign tax residents' accounts to Inland Revenue under the Common Reporting Standard (CRS), which then shares this information with other tax authorities.
Get Professional Tax Advice
Tax treatment of international transfers can be complex, especially when multiple jurisdictions are involved. The information above provides general guidance, but we strongly recommend consulting a qualified New Zealand tax advisorbefore making large international transfers.
A tax professional can help you understand your specific obligations, optimize your tax position, ensure compliance with both source and destination country requirements, and avoid costly mistakes or penalties.
Speak to Our Tax SpecialistsCurrency Risk Management Tools
Protect yourself from exchange rate volatility with advanced tools offered by specialist FX providers
Forward Contracts
Lock in today's exchange rate for a transfer up to 12 months in the future. This "buy now, pay later" approach protects you from unfavorable rate movements.
Best For:
- • Planned property purchases
- • Scheduled investment transfers
- • Regular overseas payments
- • Budget-conscious businesses
Limit Orders
Set your target exchange rate and the system automatically executes your transfer when that rate is reached, capturing favorable market movements.
Best For:
- • Flexible transfer timing
- • Maximizing value on large sums
- • Non-urgent payments
- • Opportunistic investors
Rate Alerts
Receive instant notifications when exchange rates hit your specified targets, allowing you to make informed decisions in real-time.
Best For:
- • Market monitoring
- • Timing optimization
- • Strategic planning
- • Informed decision-making
Real-World Example: Forward Contract Savings
Scenario: You're planning to transfer NZD $500,000 in 6 months for a property purchase. Today's rate is 1 USD = 1.65 NZD.
Without Forward Contract:
In 6 months, the rate drops to 1 USD = 1.55 NZD
$500,000 ÷ 1.55 = $322,581 USD
With Forward Contract:
You locked in the 1.65 rate 6 months ago
$500,000 ÷ 1.65 = $303,030 USD
Savings: $19,551 USD protected from unfavorable rate movement
Best Practices for Large Transfers
Expert tips to maximize value and minimize risk when moving significant sums internationally
Time Your Transfer Strategically
- Transfer mid-month to avoid busy periods and potential fee spikes (avoid last 5 days of month and first 10 days of next month)
- Weekends and Mondays may offer less exchange rate volatility due to lower trading volumes
- Avoid major economic announcements, central bank meetings, and geopolitical events
Monitor Exchange Rate History
- Study 3-6 month historical trends to understand normal fluctuation ranges for your currency pair
- Set rate alerts at historically favorable levels to catch good opportunities
- Even small rate improvements compound significantly on large sums
Prepare Documentation in Advance
- Have government-issued ID, proof of address, and Social Security/tax numbers ready
- Prepare source of funds documentation (bank statements, sale contracts, investment records)
- Document the purpose of transfer to expedite compliance reviews
Consider Staging Very Large Amounts
- For amounts exceeding $1M, consider splitting across multiple dates to average out exchange rate fluctuations (not to avoid reporting)
- Use a combination of immediate transfers and forward contracts
- Work with your FX specialist to develop a strategic transfer schedule
Pro Tip: The Mid-Market Rate
Always compare your provider's offered rate to the "mid-market rate" (also called the interbank rate) available on Google, XE.com, or Reuters. The difference shows you the true markup. Quality FX specialists typically offer rates within 0.5-1% of the mid-market rate, while banks may be 2-5% above it.
Why We Recommend Currencies Direct
After extensive research and client feedback, Currencies Direct consistently delivers the best combination of value, service, and security for large international transfers to New Zealand
Bank-Beating Rates
Exchange rates typically 3-5% better than traditional banks, with transparent margins shown upfront. No hidden markups or surprise deductions.
Zero Transfer Fees
No outgoing wire fees, no intermediary charges, no receiving bank deductions. The amount you send is the amount that arrives (minus the transparent exchange rate margin).
Dedicated Account Manager
Every client gets a personal account manager who understands your specific needs and provides proactive market insights and strategic advice.
Advanced Risk Tools
Full suite of hedging tools including forward contracts (up to 12 months), limit orders, stop-loss orders, and rate alerts to protect your transfers.
Multi-Currency Wallets
Hold balances in multiple currencies and convert when rates are favorable. Perfect for managing ongoing expenses across different countries.
Fully Regulated & Secure
FCA-regulated with over 25 years of experience. Client funds held in segregated accounts with tier-one banks for maximum security.
The Currencies Direct Advantage for NZ Golden Visa Investors
Specialized Expertise
- Deep experience with NZ Golden Visa investment transfers (NZD $15M)
- Understanding of Immigration NZ documentation requirements
- Established relationships with NZ banks for smooth receiving
- Guidance on timing transfers to meet visa conditions
Proven Track Record
- Hundreds of successful NZ investment visa transfers completed
- Average client savings of 3-4% vs traditional banks
- Seamless coordination with immigration advisors and lawyers
- Ongoing support for post-visa transfers (property, living expenses, etc.)
Real Client Savings Example:
How to Get Started
Setting up your international money transfer is straightforward. Here's the process:
Register Your Account
Sign up with Currencies Direct through our partner link. The process takes about 5 minutes and requires basic information (name, address, contact details).
Register NowComplete Identity Verification
Upload your government-issued ID, proof of address, and source of funds documentation. For large transfers, this typically includes bank statements, investment records, or sale contracts. Verification usually completes within 24-48 hours.
Speak with Your Account Manager
Once verified, you'll be assigned a dedicated account manager who will discuss your transfer needs, explain available rate-protection tools, and help you develop a strategy for your specific situation.
Lock Your Rate & Transfer
When you're ready, lock in your exchange rate and receive transfer instructions. Send funds from your bank to Currencies Direct's secure account, and they'll convert and forward to your NZ bank account. Most transfers complete within 1-2 business days.
Track & Confirm
Monitor your transfer in real-time through Currencies Direct's online platform. You'll receive notifications at each stage, and your account manager is always available for questions. Once complete, you'll receive confirmation documentation for your records.
Need Help?
Our team at NZ Golden Visa Advisory can guide you through the entire process, from choosing the right transfer method to coordinating with Currencies Direct. We've helped hundreds of investors successfully move their funds to New Zealand.
Contact Our TeamReady to Transfer Your Funds Safely and Cost-Effectively?
Get expert guidance and bank-beating rates for your international money transfer