Fedwire transfer

[roland]

Hi!

I received a strange business proposal a couple of days ago and wanted to hear an external opinion on whether this is potentially a banking scam.

I was approached by a business partner from Russia, who says he is also working for a Russian NGO (I checked them, they seem to be a credible organization, albeit slighly looking like a cover for FSB...). The NGO, according to the story, is about to receive a large money transfer from the US. The size of the grant is ~2bn USD. They would like to invest the money in Europe and need to open bank accounts etc. in Czech Republic (where my business is also located) in order to do this and asked for my help in getting these formalities done.

Here comes the strange part - he insists that the funds would arrive via Fedwire. I checked the existence of such system, and it does seem to exist - if I get this correctly, this is kind of US-only "SWIFT" operated by FED. However, I am very much puzzled by some of the requirements this NGO has related to this transaction, such as: window time for transaction (as if it can only be done at specific times???), instant confirmation of receipt of funds from the bank, and almost instantly moving part of this money from one account to another one.

Can this be a scam? I just cannot get where the trick is? Can someone manipulate a fedwire transfer so that the receiving bank believes it received the funds (and transfer part of it further) why in fact it did not?

I need to figure this out, because I would not like jeopardize the relationship with my bank by introducing any scammers to them.

Thank you indeed for any sort of help/ques/hints/sharing similar experiece etc!

[Miyuki]

Fedwire exists and it is used for international transfers as well.

The questions is, why would a Russian NGO need you to move money around for them? Don't they have lawyers or accountants on staff?

[roland]

Fedwire exists and it is used for international transfers as well.

The questions is, why would a Russian NGO need you to move money around for them? Don't they have lawyers or accountants on staff?

They do not seem to have lawyers/accountants on staff in this country, but they know me and need help only re these issues. They don't offer big money for this etc, I am just worried about reputational risk that I may incur at my bank.

[Miyuki]

$2 billion and they don't know how to move around money? Their bona fides don't seem very good. I think a long talk with your banker is in order.

[De Master Yoda]

$2 billion and they don't know how to move around money? Their bona fides don't seem very good. I think a long talk with your banker is in order.

Very sound advice.

The size of the grant is ~2bn USD.

So they are talking this HUGH amount of money but cannot afford to fly to where they want to set up bank accounts?

I would follow Miyuki's sound advice and talk to a trusted bank manager and show him all that you have. It would be too late to do it after the fact.

When such a large amount of money is involved then the due diligence checks should be VERY extensive.

I was approached by a business partner from Russia, who says he is also working for a Russian NGO (I checked them, they seem to be a credible organization,

And have they confirmed that he is indeed acting for them regarding this large amount of money?

[roland]

Very sound advice.


So they are talking this HUGH amount of money but cannot afford to fly to where they want to set up bank accounts? They actually are eager to come for signing the docs and so on, they just asked for help setting up meetings and figuring out technical details of transfers

I would follow Miyuki's sound advice and talk to a trusted bank manager and show him all that you have. It would be too late to do it after the fact.

When such a large amount of money is involved then the due diligence checks should be VERY extensive. Totally agree

And have they confirmed that he is indeed acting for them regarding this large amount of money?

Yes they did

[De Master Yoda]

Yes they did

I am happy that you are checking, thank you.
However, as there is such a large amount involved have you contacted them via independent means or has the contact been given to you from those involved in the 'deal'?

And is it the genuine organization you have been in touch with? Do the phone numbers/emails match the ones on their official website etc.

[roland]

I am happy that you are checking, thank you.
However, as there is such a large amount involved have you contacted them via independent means or has the contact been given to you from those involved in the 'deal'?
I contacted them in person already, and also checked website and the person I talked to is listed as executive of the organization on the website
And is it the genuine organization you have been in touch with? Do the phone numbers/emails match the ones on their official website etc.

Yes, the phone number they gave matched the one provided on the website.
My main worry is not that much the authenticity of these people, but whether they can in some way manipulate all these fund transfers. Are there any well-known archetypes of cheating with fedwire transfers? (e.g. I have heard of so-called "telex-frauds" where fraudsters tried to manipulate telex messages to create fake incoming transfers to their bank accounts)

[Central Scrutinizer]

Fraudsters will try anything if they think they can get away with it.

instant confirmation of receipt of funds from the bank, and almost instantly moving part of this money from one account to another one.

Sounds like money laundering to me.