Manage Foreign Bank Accounts
Before You Begin
The Board of Trustees has authorized the University Comptroller to open bank accounts to facilitate the operating requirements of study abroad programs, overseas research, and other activity consistent with the University's mission in foreign countries. The Comptroller and Secretary of the Board of Trustees approve the opening of bank accounts to obtain the required on-site goods and services.
Every bank account must be established in the name of the Board of Trustees of the University of Illinois. However, this requirement may be waived by a campus OBFS executive officer if the banking rules of the country involved (or other compelling reasons) prohibit establishment of an account in the name of the Board. These executive officers determine and publish rules and procedures for the advancement, use, and safety of these funds. These funds are not to be commingled with any other funds.
Bank accounts are funded from operating funds available to the unit responsible for conducting the overseas program. Foreign bank accounts are subject to audit at any time by the Offices of University Audits.
Begin
To manage foreign bank accounts, the director of the overseas activity must:
- Plan ahead. Banking in other countries is different from U.S. banking, so you will need extra time to open a bank account in another country.
- Consult with Treasury Operations, Cash Management. They will help you determine the best strategy to navigate the complex foreign banking laws and assist in obtaining Board approval, if necessary. Cash Management, in working with the unit, reports the opening of a foreign bank account to University Accounting and Financial Reporting and, if necessary, other OBFS units.
- Instruct the bank to provide two copies of statements and other official correspondence: one for University Accounting and the second copy for the program director. The director will need this information when submitting requests for expense reimbursement. If the circumstances of your program require a different arrangement, contact Treasury Operations, Cash Management.
- Manage the bank account responsibly.
The director is liable for and must repay any money lost because of inadequate precautions or improper use. The University unit providing the original funding is responsible for money lost due to circumstances beyond the control of the director.
In operations where only one person is available to sign checks, the requirement for two signatures on checks may be waived by a campus OBFS executive officer.
- Ensure that bank account transactions are made only for disbursements that are reasonable and proper for the program.
The bank account balances may be replenished as necessary, but not for amounts greater than the original authorized amount and only upon receipt of proper documentation of expenditures.
- Reconcile the account at least monthly. Forward a copy of each reconciliation to University Accounting and Financial Reporting when completed.
In some cases (such as non-advance accounts where foreign currency receipts are deposited directly into the bank account), the University may require that bank statements be sent directly to University Accounting and Financial Reporting and/or that reconciliations and posting transactions be performed centrally.
At the end of the calendar and University fiscal year, OBFS may also need additional, ad hoc information about the account, to fulfill state or federal requirements.
- Submit tax forms to meet requirements of local and national authorities.
Treasury Operations, University Tax is responsible for completing and filing reports to the U.S. Department of the Treasury. They will assist the unit in completing the forms and ensuring timely filing.
Each individual, partnership, corporation, or fiduciary subject to U.S. jurisdiction, who has a financial interest in, or signature authority over a bank account, securities account, or other financial account in a foreign country at any time during the calendar year, may be required to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, with the U.S. Department of the Treasury. This form must be filed on or before June 30th of the subsequent calendar year. A foreign country includes all areas located outside the United States, Alaska, Hawaii, and all United States territories, possessions, and entities with free association status.
Forms Used in this Procedure
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts
Section 8.16, Cash Advances for International Activities
Open or Close Bank Accounts
Last Updated: June 6, 2011 | Approved: Senior Associate Vice President for Business and Finance - November 2010