legalI have just come up an idea of international money transferring.
Let see this example, Tom i living in Australia. Tam is living in Thailand.
Tom has AUD in his bank account in Australia.
Tam has Thai Baht in his bank account in Thailand.
Now, Tom wants to go to Thailand & open a business there, so he needs a lot of Thai Baht for his business in Thailand.
Tam wants to go to Australia to study medicine. So he also needs quite a lot of AUD for his study.
OK, If Tom and Tam transfer their money from their own country to oversea, then it will be very costly. They gotta pay for the transferring fee, currency converter. It also takes pretty long time to receive.
SO, here is my solution. I will create a website that helps Tom and Tam to achieve their goals without having to transfer their money internationally. All they do is to login my website.
There will have a list of people who want to do the deals in the website. In this list, each person will say how much money they have in their own country & how much money they want to have in other country.
This is the list:
Person - Money Having in that person's Country - Money that person want to have in other country Tom - 5000 AUD - 100000 Thai Baht Tam - 100000 Thai Baht - 5000 AUD
So now Tom and Tam saw the list and they can do the deal. Tom already arrived in Thailand & open a Thai bank account there & Tam already arrived in Australia and open an Australian bank account there.
Then Tom has 5000 AUD in Australian bank account & Tam has 100000 Thai Baht in Thai bank account.
Tom does the online banking and transfer 5000 AUD from his Australian bank account to Tam’s Australian bank account.
Tam does the online banking and transfer 100000 Thai Baht from his Thai bank account to Tom’s Thai bank account.
Suppose that 5000AUD=100000 Thai baht (using the current exchange rate).
So by doing that they just need locally rather than internationally transfer their money.
So,
does this kind of international money transferring exist? if it does, then is it legal and safe?
The problem with your idea is that, in most (all?) countries, after each party receives their money, they will have to run some kind of money laundering scheme with it (that’s illegal in most places), otherwise they can’t buy property or do anything meaningful with it because they can’t report the origin of such funds to the local government.
There is also the problem of trust from each party towards the other.
Something similar to what you described is TransferWise (https://en.wikipedia.org/wiki/TransferWise), an Estonian start-up based in London.
From the wiki article:
“How it works: TransferWise routes payments not by transferring the sender’s money directly to the recipient, but by redirecting them to the recipient of an equivalent transfer going in the opposite direction. Likewise, the recipient of the transfer receives a payment not from the sender initiating the transfer, but from the sender of the equivalent transfer. This process avoids currency conversion and transfers crossing borders.”
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