High-net-worth (HNW) and Emerging Wealth individuals, families, and businesses have seen an evolution in business practices over the past several years. As the wealth of HNW families and businesses has increased, the number of family offices has also increased. Additionally, more HNW families have changed the structure of their businesses to satisfy the goal of having greater control over their operations and wealth. As a result, these individuals and business entities have to consider responsibilities that include succession planning, governance, tax, executive coaching, investments, compliance, technology, cybersecurity and data protection, talent acquisition and management, and environmental and social responsibility, to name a few.
Anti Money Laundering (AML) and International Travel Restrictions
Family offices serving high net worth individuals (HNWIs) face unique challenges when navigating anti-money laundering (AML) rules and international travel restrictions, particularly concerning access to cash and credit abroad. These complexities require careful planning and adherence to regulations to ensure compliance while maintaining the financial flexibility that HNWIs require.
AML Compliance
Family offices must implement robust AML policies and procedures to comply with regulatory requirements. This includes:
- Establishing customer risk assessment protocols
- Reporting suspicious transactions
- Providing staff training on AML procedures
- Maintaining accurate records
- Conducting ongoing account monitoring
While it’s possible to outsource AML functions, family offices remain responsible for regular monitoring and oversight of these activities.
International Travel Considerations
Family Office and Emerging Wealth individuals and businesses often face unique security concerns when traveling due to their elevated profiles and substantial financial resources. When it comes to accessing cash and credit abroad, family offices must balance security with convenience.
Cash Access Strategies
- Coordinate with banks to increase daily withdrawal limits for international ATMs
- Arrange for secure cash transportation services in high-risk areas
- Utilize multiple credit cards from different networks to ensure backup options
Credit Card Usage
- Notify card issuers of travel plans to prevent fraud alerts
- Use cards with no foreign transaction fees
- Carry cards with embedded chips for increased security and acceptance
Navigating AML Restrictions
To address AML concerns while traveling, family offices should:
- Maintain detailed records of fund sources and transfers
- Provide documentation of wealth origin when requested by financial institutions
- Use reputable international banks with established AML compliance programs
- Consider establishing relationships with local banks in frequently visited countries
Risk Mitigation Strategies
Family offices can implement several strategies to mitigate risks associated with international travel and AML compliance:
- Conduct thorough due diligence on international financial partners
- Develop relationships with legal advisors familiar with AML laws in relevant jurisdictions
- Implement secure communication channels for financial transactions while abroad
- Regularly review and update AML policies to reflect changing regulations
By taking a proactive approach to AML compliance and international travel planning, family offices and Emerging Wealth individuals and businesses can help ensure that HNWIs maintain access to necessary financial resources while minimizing legal and security risks. This comprehensive strategy allows for seamless global mobility while adhering to increasingly complex regulatory frameworks.
Seth Tuman is the Chief Administrative Officer at 2GO Advisory Group and co-leads the Family Office Practice Group. With more than 20 years of experience managing resources, budgets, and financials, he works with stakeholders and employees to establish and meet goals while fostering client relations. He supports the day-to-day operations and management of budgets, payroll, accounting systems, financing, and banking matters — including compliance and fraud protection for his clients.
Seth has established trusted relations with the companies listed below. Their teams of dedicated, experienced professionals can provide comprehensive Advisory, Legal, Investment, Banking and other related business support to HNW and Emerging Wealth individuals and entities.
The experienced attorneys at Hanson Bridgett LLP offer comprehensive legal services, counsel, and guidance to HNW individuals and families looking to setup and manage family office structures, private trusts, and foundations to meet their investment and philanthropic objectives. The multidisciplinary approach includes attorneys from a broad range of practice areas who have experience assisting HNW individuals and businesses achieve their goals throughout their entire enterprise cycle. Visit www.hansonbridgett.com or contact Eric Clarke, Partner, at (925) 746-8470.
Parallel Advisors services their family office clients in tax optimization, liquidity and exit planning, private investment access, trusts & estates, Philanthropy, lifestyle resources and concierge services. By forming Parallel Advisors as a team, with all principals as owners, the entire team is aligned to pursue the best interests of all Parallel Advisors’ clients. They work together toward the success of all, contributing our own unique talents in a culture and organizational design focused always on client outcomes first and foremost. Visit www.paralleladvisors.com or Ray Polin, Wealth Advisor, at (415) 728-9166.
The First Bank Center for Family-Owned Businesses (CFOB) was established to support family businesses through specialized resources, networking opportunities, and guidance tailored to their unique challenges. First Bank, a 4th generation, privately held, family-owned bank, has a long history of serving family-owned enterprises. In addition to the bank traditional lines of businesses, of lending and providing treasury management services, the CFOB offers services such as consulting, workshops, webinars, and an online Family Business Resource Center. Visit www.first.bank/ or Gene Seip, SVP – Relationship Manager, at (925) 787-9166.
Grobstein Teeple LLP is a full-service CPA and advisory firm serving businesses, nonprofits, and high-net-worth individuals. Their comprehensive offerings include cybersecurity (including forensics, risk management, and CISO services), transactional support (due diligence, QOE, financing), and assurance services (audits, reviews, IPO prep). They also provide tax planning and compliance, including trust and estate strategy and IRS representation. The firm offers litigation consulting, expert witness services, and turnaround support for financially distressed entities. Additionally, they advise on business transitions, succession planning, and internal controls—making them a trusted partner for complex challenges. Visit www.gtllp.com or contact Howard Grobstein, Managing Partner, at (818) 532-1020.
For your Talent needs in direct hire, full-time or part-time contract staffing, contact Executive Recruiter, Leesa Meintzer at leesa@2gorecruiting.com.
COMPANY
2GO Advisory Group™ is a San Francisco Bay Area-based pioneer of fractional C-suite services. We leverage our consulting partners and recruiting to customize solutions across executive functions. Business owners and executives value our expertise which spans dozens of industry sectors and practice disciplines. With more than 35 years at the forefront of fractional executive services, our flagship CFOs2GO® has evolved to include COOs2GO™, CHROs2GO™, CIOs2GO™, CROs2GO™, and Talent2GO™. Our multidisciplinary approach helps organizations navigate change, enhance executive leadership, execute business strategy, and operate in both the U.S. and internationally. We use technology and a network of C-Level consultants to provide local representation in virtually every metropolitan community in the U.S. We strive to evolve to meet the emerging needs of clients at every stage of their business. Discover more on www.2goadvisorygroup.com and follow us on Linkedin at 2GO Advisory Group, CFOs2GO, COOs2GO, CHROs2GO, CIOs2GO, CROs2GO, and CMOs2GO. Copyright