# Information about Migrant Blocked Account for Sri Lankans migrating to Australia



## Anusha1985 (Feb 9, 2015)

Hi guys,

I will be migrating to Australia next month and I heard that you can transfer funds to the bank in Australia (Westpac, in my case) through a Migrant Blocked Account (MBA) that's opened with a bank in Sri Lanka.

Bank websites (I checked BOC, Peoples Bank) offer very little information about operating an MBA. I called BOC, and they told me to come to the Personal Branch to learn more about it. I will be going there within this week, but I would like to know if there are any pitfalls regarding operating an MBA, from the guys who have used an MBA before.

My first concern is that, since there is a US$5000 limit of bank notes that can be carried with one's self on the flight without declaring them to the customs, do we really have to open a MBA first if want the LKR to be converted to AU$ in the event we give the reason as "Migrating" when the bank asks? I am not worried about them deducting that amount from the initial US$ 150,000 allowance, because I don't have that much money to transfer anyways. But I really need to take that $5000 cash with me.

Is a MBA created per family, or per person? My wife and kid would be migrating as well, but they will arrive later. Do we need to include their information when opening an MBA as well? 

How do you transfer the money afterwards? You first transfer the money, for example, a savings account from Sampath Bank to the MBA, and then what? Can we do it online? Or do we have to physically go to the bank and tell them to transfer the money? Can someone (a family member) do it on our behalf, especially after I have left Sri Lanka? 

The most important thing. Are there any bank charges other than the handling charges (from the transfer initiated bank and the receiving bank: for Westpac it is AU$ per transfer)? What about the proposed Migration Tax of 20% (it is applicable specifically to the MBA, right?)? Is it in effect? I couldn't find any up-to-date information about it.

That's about it for the moment.

I would appreciate if someone can answer the above questions as well as some general information about an MBA.


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## Casser (Jan 5, 2016)

Anusha1985 said:


> Hi guys,
> 
> I will be migrating to Australia next month and I heard that you can transfer funds to the bank in Australia (Westpac, in my case) through a Migrant Blocked Account (MBA) that's opened with a bank in Sri Lanka.
> 
> ...



From what I have heard so far the MBA just doesn't seem to be worth it. From 1st of November the 20% tax is in effect and who knows what other whims and fancies will be implemented in the future. The way I see it, you have a few options to get some of the cash out...
1. Open an NRFC account at a local bank, deposit your money and sign up for the internet banking facility (and get a debit card also if you think it would be useful). Since NRFC withdrawals are now not regulated you should be able to make withdrawals from Australia.
2. Carry physical cash of upto 7100 AUD (5000 USD) without worrying about declaration.
3. Carry physical cash of upto 14200 AUD (10000 USD) after making a declaration.
4. Load upto 14200 USD (10000 USD) on to a travel card and carry it with you. 

Each option has different costs associated with it, so you might want to make a choice after looking at all your options.


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## starwin4u (Jul 22, 2015)

Casser said:


> From what I have heard so far the MBA just doesn't seem to be worth it. From 1st of November the 20% tax is in effect and who knows what other whims and fancies will be implemented in the future. The way I see it, you have a few options to get some of the cash out...
> 1. Open an NRFC account at a local bank, deposit your money and sign up for the internet banking facility (and get a debit card also if you think it would be useful). Since NRFC withdrawals are now not regulated you should be able to make withdrawals from Australia.
> 2. Carry physical cash of upto 7100 AUD (5000 USD) without worrying about declaration.
> 3. Carry physical cash of upto 14200 AUD (10000 USD) after making a declaration.
> ...


Hi Cessar, 

So In this case We can load up to 10,000 USD in Travelers cheque (20,000 USD for 2 Adults) and Load the balance 10,000 USD in Travel Card ?

So, my question is if we travel with 10,000 USD Travelers cheque, can we carry around 1000 AUD in Cash... 

What about the Children, Can they carry cash...


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## Casser (Jan 5, 2016)

starwin4u said:


> Hi Cessar,
> 
> So In this case We can load up to 10,000 USD in Travelers cheque (20,000 USD for 2 Adults) and Load the balance 10,000 USD in Travel Card ?
> 
> ...


1. Sri Lankan banks have now replaced travelers cheques with 'Travel Cards'. 
2. When it comes to children the banks may not issue Travel Cards, but they should be able to carry 10000 USD in cash (please check with customs to be on the safe side as I have no experience in this regard)

To quote the exchange control department of Central Bank

*''At your departure from Sri Lanka:
You have to declare to the Sri Lanka Customs:
• If you are taking out more than USD 10,000 in any form of foreign currency including currency notes, bank drafts and/or traval cards.
• If you are taking currency notes more than USD 5,000''
*

So theoretically I guess two adults traveling with a child could load up two travel cards upto 20000 USD and carry some spare cash upto 5000 USD without much worries about declarations and stuff.


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## Anusha1985 (Feb 9, 2015)

Hi guys,

Thanks for the info. 

I have made my first visit in October last year, so the bank said that I might be in the clear with regards to the 20% tax. 

The biggest inconvenience is that you need to get a Tax Clearance certificate from the Dept of Inland Revenue. That is such a hassle. Have to show them how funds are coming from, our current tax payment stuff etc. I am still going to pay them a visit to see what exactly they need. (For example, I don't have salary statements for the last 3 months, because I wasn't working in SL for the last 5 years.)

The other "huge" inconvenience is that you cannot get foreign currency from a local bank if you don't have a return air ticket. If you are migrating, the MBA is the only "legit" solution. Otherwise, have to use a money exchanger.

I do have NRFC accounts @Sampath bank and at @BOC. How do I use internet banking? Are you telling me that we can transfer money online, for example, using SampathVishwa to my bank in Australia? Or do I have to do it over the counter?


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## Casser (Jan 5, 2016)

Anusha1985 said:


> Hi guys,
> 
> Thanks for the info.
> 
> ...


It's interesting how you mention 'legit' solutions. Indeed there are many 'unconventional' methods which I do not wish to discuss due to forum rule no 14. 

At this point, if you are traveling on a one way ticket you can try your luck with a travel card (A return ticket is not strictly looked into in some cases).

Or get internet banking activated on your BOC account and use funding from that account. (you can sign up for it by filling up the internet banking form and handing it over to a BOC branch)


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## starwin4u (Jul 22, 2015)

Casser said:


> It's interesting how you mention 'legit' solutions. Indeed there are many 'unconventional' methods which I do not wish to discuss due to forum rule no 14.
> 
> At this point, if you are traveling on a one way ticket you can try your luck with a travel card (A return ticket is not strictly looked into in some cases).
> 
> Or get internet banking activated on your BOC account and use funding from that account. (you can sign up for it by filling up the internet banking form and handing it over to a BOC branch)


This is the Issue we are facing here.. even my plan is to withdraw my Provident Fund before leaving SL.. which is not a problem, as I can get it by just showing supporting documents such as Grant letter and passport copy.

But taking the money to Aussie is the trouble here.... we are planning around 25k to 30k AUD...


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## Anusha1985 (Feb 9, 2015)

Casser said:


> It's interesting how you mention 'legit' solutions. Indeed there are many 'unconventional' methods which I do not wish to discuss due to forum rule no 14.
> 
> At this point, if you are traveling on a one way ticket you can try your luck with a travel card (A return ticket is not strictly looked into in some cases).
> 
> Or get internet banking activated on your BOC account and use funding from that account. (you can sign up for it by filling up the internet banking form and handing it over to a BOC branch)


Legit as in the only method approved my the Exchange Control.

What can BOC internet banking do? As far as I can see, all you can do with it transfer money to local bank accounts.


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## starwin4u (Jul 22, 2015)

*Travelling with money*

Hi All,

My PR is on process, expecting to receive before end of December. My plan is to withdraw my Provident Fund before leaving the country.. 

But taking the money to Aussie is the trouble here.... we are planning around 25k to 30k AUD, what are the legal ways to take that amount to Australia as normal bank transfers are not easy.


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## Islander820 (Sep 25, 2015)

Hi, 
Sorry to bump up this old thread but since it's been mentioned here that you can carry upto 5000 USD equivalent in AUD, I would like to know which is the best and safest way to obtain AUD. I talked to few banks and they wouldn't issue without a return ticket and I'm bit weary about obtaining them from other money exchangers because of counterfeits since I haven't seen AUD before.


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