Movement of Funds and Securities

What this video covers

• Why a wire transfer or automated clearing house (ACH) transfer uses an external payment network, and why a journal never leaves the firm's books
• How customer authorization works through a letter of authorization (LOA), and why a verbal phone call is never sufficient
• Why each account demands its own transfer process based on registration, ownership, and transfer requirements
• What a medallion signature guarantee program does for securities transfers, and how it differs from a basic LOA for funds
• When a currency transaction report (CTR) is required for qualifying currency transactions under the Bank Secrecy Act
• What reinvestment does with proceeds or distributions, and why it is not the same as sweeping free credit balances
• How a sweep automatically parks free credit balances into a money market mutual fund or Federal Deposit Insurance Corporation (FDIC) insured account, and why the customer must explicitly order liquidation to exit