Insight
Published August 2025 · 3 min read
Trustees managing international structures occasionally receive foreign cheques — most commonly US Treasury cheques issued for tax refunds, dividend payments, or legal settlements. For offshore structures without a US bank account, these instruments create a specific and underappreciated problem.
Most European and Channel Islands banks no longer accept foreign cheques for clearing. Those that do impose clearing times of six to twelve weeks, high correspondent banking fees, and in some cases require the cheque to be physically presented in the issuing country. For structures holding US Treasury instruments, there is the additional complication that the cheque must be deposited into an account in a tax-neutral jurisdiction — ruling out most straightforward solutions.
The consequences of delay are practical and serious. Funds remain inaccessible while the clearing process runs. Holding an unbanked cheque for an extended period can raise questions during regulatory reviews. And the administrative time spent chasing a solution is time not spent on client work.
The issue arises most commonly for regulated trustees managing US beneficiaries or structures with US assets, family offices handling cross-border estate distributions, and corporate service providers whose clients receive IRS refunds or US court-ordered payments into offshore structures.
iKYC has established relationships with licensed banks that accept foreign cheques for offshore structures, including US Treasury instruments. Our process is fully AML and KYC compliant, uses licensed institutional counterparties only, and provides clear timelines and cost structures before any work commences.
We do not use e-money institutions or payment platforms for this service. The account is a full licensed bank account in the relevant jurisdiction, which means the funds are properly held and immediately usable for downstream payments, trustee fees, and beneficiary distributions once cleared.
If you are holding a foreign cheque with no clear route to deposit, contact us. The initial assessment is complimentary and we will tell you within one business day whether we can assist.