How to properly transfer money between jurisdictions without the risk of blocking

In 2025, there remains a high level of risk associated with cross-border transfers: blocking, return, freezing of accounts, tax consequences and even criminal risks in individual countries. Antwort Law, as an international law firm supporting cross-border activities of companies and individuals, regularly faces the consequences of errors in currency transfers. This article is designed as a practical guide that will allow you to avoid critical mistakes and choose a reliable strategy for moving funds between jurisdictions.

Why banks block international transfers: real reasons

International banks and payment systems are subject not only to national legislation, but also to the requirements of cross-border regulation - primarily to the norms of AML (Anti-Money Laundering), FATF, currency control and sanctions compliance.

In fact, this means that any transaction:

• or “opaque” jurisdiction (e.g. offshore, high-risk countries according to FATF),
• involving a private account without an explanation of the business purpose,
• with an unclear origin of funds or without documentation,

may be stopped, frozen or returned to the sender.

Especially often, blocking occurs with the participation of banks such as Revolut, Wise, N26, as well as European branches of international banks that seek to minimize risks against the background of regulation in the EU, UAE, UK, Singapore and the USA.

As of April 2025, strict currency regimes are maintained or strengthened in the following jurisdictions:

• Russia and Belarus - residents are prohibited from freely transferring currency abroad without permission or justification of economic purpose;
• China maintains restrictions on the amount of currency transfers by individuals;
• Turkey and Egypt - complex control mechanisms and mandatory disclosure of sources of funds;
• EU - new mechanisms for automatic exchange of financial information (CRS) and increased interest in funds from third countries.

Thus, even if the transfer is technically possible, it can be challenged or stopped if the beneficiary is in a country with enhanced currency or tax controls.

How to avoid blocking: practical tips

1. Choose payment channels with legal transparency

Using payment solutions that have undergone full KYC (know-your-customer) verification minimizes risks. The most reliable channels:

• Corporate accounts in licensed banks in the UAE, Singapore, EU;
• multi-currency payment platforms with an EMI license (e.g. Payoneer, ConnectPay);
• crypto-fiat gateways with a verified structure (e.g. BitPay, BCB Group).

2. A responsible approach to choosing a bank/service is the first step to protecting assets.

Justify the business or economic purpose of the transfer

Always accompany international transfers with documentation:

• A contract;
• An invoice or deed;
• A corporate structure (if transferring between related companies);
• A letter explaining the purpose of the transfer.

Clear documentation significantly reduces the risk of funds being frozen.

3. Separate channels for business and private needs

Many blockages occur because business finances pass through private accounts. This violates both tax and AML requirements. A responsible payer must:

• Use legally formed accounts for business;
• Register payments to private individuals as dividends, salaries, or loans with appropriate tax forms;
• Consider tax implications when transferring between own accounts in different countries.

4. Optimize transfer routes

If a direct transfer from country A to country B raises questions, it is wise to use an intermediate jurisdiction with a neutral status (for example, the UAE, Switzerland or Singapore), where funds can be “cleaned” and forwarded without the risk of blocking.

Which payment systems are the most reliable in 2025

Reliability is determined by several parameters at once: the presence of a license, the volume of customer checks, the scale of operations and experience in interacting with regulatory authorities. The most stable and secure at the moment include:

• Stripe Atlas (for companies with global business);
• PayTabs (especially effective for operations in the GCC);
• ConnectPay, Intergiro (EU, multi-currency, support for companies with a crypto component);
• Mercury, Brex (for US companies);
• BitPay (if you need to receive cryptocurrency and withdraw to fiat).

Important: do not confuse “convenient” payment solutions (e.g. Revolut) with legally reliable ones - the latter will benefit in the long run and in the event of disputes.

How to avoid problems with currency controls

1. Understand your residency status - physical and tax. Often, blocking occurs due to a discrepancy between the country of residence, citizenship and tax jurisdiction.
2. Obtain a tax residency certificate in the right country to use double taxation agreements (DTA).
3. Do not mix personal and business funds - especially in countries with currency controls (e.g. Russia, India, China).
4. Consult with each transaction if the amount exceeds $10,000 - such amounts come under special attention of banks.

In 2025, it will be increasingly common companies and individuals face not only returns and blockings, but also additional tax assessments, fines and criminal liability for:

• concealment of the origin of funds;
• "gray" transfers between jurisdictions;
• exchange rate manipulation;
• fictitious contracts accompanying transfers.

International law firm Antwort Law assists clients in:

• building a secure payment infrastructure (including calculating the tax burden and selecting banks);
• registering companies taking into account cross-border capital movements;
• obtaining tax residency certificates and resolving double taxation issues;
• drawing up a legal structure for family assets, trusts, investments and cryptocurrency solutions;
• protecting interests when blocking accounts, maintaining correspondence with banks and submitting official applications to regulatory authorities.

If you are planning an international transfer, investment, relocation or scaling a business across borders, don't take risks without consulting. Contact the experts at Antwort Law - and your capital will be safe and your transactions will be within the legal framework.

Lidia Ivanova

International lawyer
Antwort Law