Each company is obliged to sell part of the proceeds in foreign currency before it reaches the foreign currency account. In full, the customer’s income in foreign currency is deposited in a transit account, on which the mandatory sale of part of the amount is carried out, as well as other necessary operations are performed.
After exchanging part of the profit for the national currency, this amount is transferred to the bank account of the client. After crediting the funds, they can be distributed at your own discretion. A credit institution may carry out a transaction of sale and transfer only on the basis of a corresponding application for the sale of a certain amount. In addition, the transit account is intended for settlement with counterparties for settlements carried out in foreign currency. An exception is cash attributable to the profit and loss account.
A transit account can be useful to a legal entity in relations with residents or non-residents of a country. Often it is used in settlement operations with forwarding, transport and insurance organizations that are non-residents of the country, as well as to return amounts in foreign currency for the movement of goods in the territory of a foreign state. The transit account is used by banks when transferring the costs of customs clearance of goods and their transportation across the border. A small part of the amount from this account is debited as a commission to the credit institution for the timely and high-quality 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. At the same time, a transit account is opened for each currency account for the mandatory sale of part of the profit.
Recently, more and more people decide on the need to invest temporarily free cash in assets, for example, in securities on the stock exchange. But, as a rule, it is not possible to search for a profitable project and its further implementation due to lack of time. To help a legal entity, 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 monitor all the actions of a broker and not worry about the safety of money. And the broker, in turn, gets the opportunity to carry out all the 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 after the due date. In addition, the business entity is not responsible for the obligations of the broker, therefore, agents should not use the client’s money to pay for the claims against them.
By opening a foreign currency account and, accordingly, a transit account, the legal entity enters into an agreement with the bank, which indicates the main provisions for maintaining the account. For example, the agreement sets out the deadline for submitting bank statements, persons who can manage the money, and also indicates samples of their signatures and company stamps. After the funds have been transferred to the transit account, the client is obliged to submit an application for the sale of the mandatory part of the proceeds. Also, it is necessary to present 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 are compiled, and then they are filed with the client’s documents.