What is a Paymaster?
A paymaster is someone appointed by a group of Investors or Government to dispense Commissions, Fees or Salaries within the Private or Public Sectors. This Service simplifies having to make multiple disbursements to recipients in different Countries and/or different Currencies with their unique requirements.
How will payments be disbursed upon closing?
Typically, the process begins when all parties within a transaction agree to use the services of a Professional Registered Paymaster. Our Firm will distribute an “Irrevocable Fee Payment Agreement (IFPA)” to all of the parties receiving a portion of the funds. The “IFPA” document outlines the exact amount of money each party will receive and how the funds will be disbursed to each person. Upon completion and after the Funds are received, they will be distributed in a prompt manner, according to the “IFPA” and to the receivers or Banks as specified within the document, or held in our Secure Holding Account for later disbursement if requested by the Beneficiary.
Is IFPA – Irrevocable Fee Payment Agreement confidential?
The “IFPA” is held in strict confidence after it has been received. This includes the names of the various Individuals, Companies or Agencies within the “IFPA”, Payout Amounts and where they are to be distributed. We do not disclose any details of the Agreements and/or the information contained therein. We might confirm that we are the “Paymaster” on record for a particular transaction, if we are asked. However, we do not disclose the details of any transaction.
Paymaster Service Fees
We typically charge 0.50% (half of one percent) of the amount of the entire transaction
Minimum fees and additional bank fees may apply in some situations.
¹ All parties to the transaction will complete an Irrevocable Fee Payment Agreement (IFPA). This document outlines the exact amount of money each party will receive and how the funds will be disbursed to each person.
² Basic due diligence is required as to the source of funds or entities providing the funds.
³ Bank fees may be additional and are charged to the individual payee and include such things as the actual wire charges. Minimum fees may apply in some situations. Bank fees may be additional and are charged to the individual payee upon initial disclosure.
When should I retain the services of a Paymaster?
Immediately. When you register for Paymaster Services you may select the banking institution that you prefer and will receive the coordinates for the Paymaster Account.
You will also be given copies of the Client Information Summary. United States residents will need to complete the W-9 Tax Form. If any of your beneficiaries reside outside of the U.S., please let us know and we can provide you with a blank W-8BEN Form.
To avoid any delay in clearing your funds, we also need a copy of your Master Fee Agreement or documentation showing the source of funds. For larger wire transfers the Banks will want to know more information about the source of your the funds. Being able to show them a copy of the Master Fee Agreement will usually satisfy their curiosity and allows us to quickly initiate your wire transfer.
How quickly will I receive payment after my deal closes?
Providing all your documentation is completed satisfactorily, we will usually wire your funds within 48 hours unless the payment are received either on a banking holiday or a weekend. As very large wire transfers are subject to our banks’ approval and verification of the origin of funds, occasionally the Bank can cause a slight delay, but we will always endeavor to minimized or avoid any delays on your behalf.
Does the Paymaster handle Private Cash Conversion Transactions?
Yes, we can do that through our Multi Currency Account which can handle such Private Cash Conversion Transactions in 19 Currencies. Such Private Cash Conversion Transactions are not required to have Feds approval to receive Funds in one Currency and disburse Funds in a different Currency.
May I call the Paymaster’s Bank to verify the Funds arrival?
No. All Paymaster transactions are confidential. No bank employees are permitted to discuss any details of the transaction with you. Only one person (the Paymaster) is authorized to contact the Bank. No one else can access the accounts or confirm whether or not your Funds have been received.
We will contact you by email, telephone, text message, or Skype (whichever contact method you prefer) to inform you when your Funds have been wired into our account, and will contact you again after initiating your wire transfer.
Can the Paymaster disburse Commission Funds to multiple Parties?
YES definitely. In fact by using a Licensed Paymaster to disburse your funds, you can be assured that total focus is on client care and smooth transactions. You Paymaster will ensure that all legal requirements regarding the disbursement are adhered to on your behalf. To disburse funds to multiple parties, all Individual entities receiving Funds from the Sub Fee Agreement must complete a Client Information Sheet and W-9 (or W-8BEN for foreign recipients) so that we can identify the recipient and transfer the Funds to the correct account.
Can the Paymaster disburse funds by cash, check, or money order?
No. We are licensed to receive and/or disburse Funds to/from our Bank Account via MT103 / MT202 wire transfers (Swift). No maximum limit. Receiving and distributing your funds exclusively via wire transfer dramatically reduces your risk of fraud or theft, and ensures the fastest turnaround time possible.
Can the Paymaster receive Bank Instruments?
Yes, but only for its own Registered Clients. Only cash backed strong Bank Instruments (BG, SBLC, MTN). Instruments must be issued into Billion City Limited name and Issuing Bank must be instructed to pay Billion City Limited. Once converted into Cash, it will be held in our Holding Account until you set up your Bank Account in Hong Kong or Offshore. Then, will disburse the Funds to your nominated Account minus Bank Charges.
Can the Paymaster help me set up a Bank Account?
Yes, but only for its own registered Clients. The Paymaster can assist them to set up a Company and Bank Account in Hong Kong. Hong Kong Company can set up a Corporate Bank Account Offshore. Debit Cards will be connected to main Account. This will allow you to access your Funds from anywhere in the world.
How long can the Paymaster hold my funds?
Billion City Limited can hold your funds for as long as you require upon receipt of your instructions as we also provide our clients a Multi Currency Holding Service, as it quite often happens that clients finalize a transaction and are not sure where they want their funds transferred to. In some circumstances, clients wish to open their own company in Hong Kong for continued business activities, but haven’t had the time to set it up. Billion City Limited can hold your funds in any of its Multi Currency Accounts until we receive instructions from you that you wish to transfer your funds. This saves our Clients large sums of money otherwise payable in taxes in other countries. The holding fee is only 0.25% per calendar month creating huge savings for many clients.
In addition, if required, we can also assist you to set up your new Company and/or Bank Account in Hong Kong.
Can I check the Paymaster?
Yes. We are a registered Paymaster General. Check Business Registration Certificate No. 2116203