US Banking Restrictions on USD Transfers from Europe
When a financial institution in Europe transfers a large amount of USD through an American bank the US bank has the right to close the European bank’s account at any time. This means that the European bank will be unable to transfer USD outside of its system. This would cripple any European bank which would hold their clients’ USD but not be able to transfer it outside of their system. Virtually isolating the European bank from international banking. US banks also have the authority to ban transfers of USD from certain industries like Forex, sports and gaming. Read more information on Euro Bank Account
The Alternative to USD Transfers in Europe
To avoid the risk of USD banking restrictions, European banks are extremely cautious about transferring USD. Instead European banks advise their clients to make most transfers in Euros using the SEPA system. When making transfers in Euro and using the SEPA system the banks are not risking becoming subject to sanctions by the American banking system. The restrictions and regulations in American banks acting as intermediaries for USD transfers by European banks have led European banks to advise clients to minimize US transfers and instead use alternative currencies like Swiss Francs, Japanese Yen or Australian Dollars.
We are seeing fewer and fewer USD transfers in Europe and this trend is likely to continue. Although US transfers still dominate the international market other currencies are definitely gaining ground