What is the formal term for an instruction to transfer funds?

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Multiple Choice

What is the formal term for an instruction to transfer funds?

The formal term for an instruction to transfer funds is payment order. A payment order is a directive from the account holder (originator) to their financial institution to move money to a recipient’s account, typically through a transfer such as a wire or ACH payment. It’s the actual instruction that initiates the movement of funds. Travel Rule, OFAC, and Sanctions Programs relate to other aspects of transfers. The Travel Rule concerns the requirement to transmit certain identifying information with transfers to support AML/CFT checks; OFAC is the sanctions enforcement office, and Sanctions Programs are the lists and rules around who and what is restricted. They govern compliance and eligibility, not the basic instrument used to initiate a transfer.

The formal term for an instruction to transfer funds is payment order. A payment order is a directive from the account holder (originator) to their financial institution to move money to a recipient’s account, typically through a transfer such as a wire or ACH payment. It’s the actual instruction that initiates the movement of funds.

Travel Rule, OFAC, and Sanctions Programs relate to other aspects of transfers. The Travel Rule concerns the requirement to transmit certain identifying information with transfers to support AML/CFT checks; OFAC is the sanctions enforcement office, and Sanctions Programs are the lists and rules around who and what is restricted. They govern compliance and eligibility, not the basic instrument used to initiate a transfer.

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