Does IB accept third party deposits?

Overview: 

Third party deposits are defined as those deposits which originate from or are drawn upon an account at a financial institution which is titled in a name other than that of the receiving IB account holder(s).  Third party deposits also include check deposits made payable to the IB account holder and endorsed over to IB. 

As third party transfers have historically been viewed by the financial services industry and its regulators as being highly susceptible to acts of fraud and money laundering, they are strongly discouraged and, in most instances, rejected by IB.  

In the case of deposits made by check, IB will not accept any checks which require endorsement to IB and will only accept check deposits having IB as the direct payee where the party who writes the check either: 

  1. Has the same last name as the individual account holder (e.g.; spouse or, child); or 
  2. In the case of organization/institution accounts, maintains an affiliation with the account (e.g.; owners). 

In the case of electronic transfers (Wire, ACH or EFT) account holders should note that IB reserves the right to reject any third party deposit. Large deposits or those that are frequent in nature are most susceptible to compliance inquiry and/or rejection. 

In accordance with its regulatory obligations, IB may conduct additional due diligence on customer deposits, particularly deposits from anyone other than the accountholder.

 

IMPORTANT NOTICE

Account holders who are uncertain as to whether a particular check qualifies for acceptance should contact IB’s Funds & Banking Department for clarification prior to remitting the check.

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