Transit account of the bank: why is it needed?

Each enterprise is obliged to sell part of the proceeds in foreign currency before it reaches the foreign exchange account. In full, the client's income in foreign currency is placed on the transit account, where the mandatory sale of a part of the amount is made, and other necessary operations are performed.

After exchanging part of the profit on the national currency, this amount is transferred to the bank account of the client of the bank. After crediting funds, they can be distributed at their own discretion. The credit institution can carry out the sale and transfer operation only on the basis of a relevant application for the sale of a certain amount. In addition, the transit account is intended for payment with counterparties for settlements in foreign currency. Exceptions are cash held to profit or loss.

A transit account can be useful to a legal entity in relations with residents or non-residents of the country. Often it is used in settlement transactions with freight forwarding, transport and insurance organizations that are non-residents of the country, as well as for the return of amounts in currency for the movement of goods on the territory of a foreign country. The transit account is used by banks when transferring the costs for customs clearance of cargo and its transportation across the border. A small part of the amount from this account is written off as a commission to a credit institution for the timely and qualitative execution of all client orders.

In order to open a bank account in foreign currency, a legal entity must provide a certain set of documents confirming its status and an application for opening a foreign currency account. In this case, the account for each currency automatically opens a transit account for the mandatory sale of part of the profit.

Recently, more and more people make a decision on the need to invest temporarily free cash assets, for example, in securities on the stock exchange. But, as a rule, it is impossible to engage in the search for a profitable project and its further implementation because of the lack of time. In the aid of a legal entity, the services of brokerage firms or individual agents are offered. For a successful tandem, you need to open a brokerage account, which reflects each movement of funds.

Thus, a legal entity can easily track all the actions of a broker and not worry about the safety of money. A broker, in turn, gets the opportunity to conduct all necessary operations without prior advice from the owner of the funds. In rare cases agents of brokerage firms have the right to use the free balance of money in the account for personal needs with the obligation of subsequent return in full and in due time. In addition, the business entity is not liable for the broker's obligations, so agents should not use the client's funds to pay for the claims made to them.

Opening a currency account and, accordingly, a transit account, a legal entity concludes a contract with the bank, which specifies the main provisions for keeping the account. For example, the agreement specifies the period for issuing account statements, persons who can dispose of money, as well as samples of their signatures and the company's stamp. After receipt of funds to the transit account, the client must provide an application for sale of the mandatory part of the proceeds. And it is also necessary to produce supporting documents confirming the source of receipt of funds, and it is necessary to do this within the next seven working days. First they are sent to the control unit, where their authenticity and correctness of the compilation are confirmed, and then filed to the client's documents.