Banking Foreign Cheques: A Practical Solution for Trustees

Banking foreign cheques (eg. US Treasury Cheque)

The Challenge

In today’s digital world, cheques have become almost obsolete. Yet, we continue to see trustees and fiduciary professionals receiving foreign cheques, particularly US Treasury cheques.

For non-US structures without a US bank account, this creates a real challenge. Banking a foreign cheque in Europe (or elsewhere) can be a slow, costly, and compliance-heavy process. Many banks no longer accept cheques, and those that do often impose long clearing times and high fees.

Why Does This Happen?

Despite the global shift to electronic payments, certain institutions such as the U.S. Treasury still issue cheques for tax refunds, dividends, or other disbursements. Trustees managing complex or enhanced-risk structures often find themselves holding these instruments with no straightforward way to deposit them.

When Will the U.S. Stop Issuing Paper Cheques?

The U.S. Department of the Treasury has announced that the federal government will stop issuing paper checks for most federal payments on September 30, 2025. After this date, all payments, including tax refunds and benefits will be made electronically via direct deposit or other digital methods. Limited exceptions will apply for individuals without banking access or in special circumstances.

The Risks of Delay

Liquidity Issues: Funds remain inaccessible for weeks or months.

Compliance Concerns: Holding unbanked cheques can raise questions during audits.

Operational Inefficiency: Time spent chasing solutions instead of focusing on client needs.

Fiscal: Trustees require such cheques to be banked via an account in a tax neutral jurisdiction. This adds another layer of complexity as even traditional banks are unable to bank foreign cheques offshore.

Our Solution

At ikyc, we provide a practical, compliant, and efficient solution to bank foreign cheques, including USD Treasury cheque banking. Our process ensures:

Regulatory Compliance: Fully aligned with AML/KYC requirements.

Speed: We deliver faster banking routes.

Transparency: Clear timelines and cost structure.

Who Benefits?

• Trustees managing complex structures

• Family Offices handling cross-border assets

• Corporate Service Providers dealing with international clients

If you're trying to bank a foreign cheque, we can assist.

Ready to Simplify Foreign Cheque Banking?

Book a slot in our diary to learn how we can help: https://meetings.hubspot.com/raj98