In a funds transfer, who is the person or entity receiving the funds?

In a funds transfer, who is the person or entity receiving the funds?

• A. Beneficiary
• B. Originator
• C. Counterparty
• D. Payee

Answer: (A)

In a funds transfer, the person or entity that will receive the money is the beneficiary. This term identifies the recipient named in the transfer instructions, and it’s the focal point for processing the payment through the banking system. The originator is the one who starts or sends the funds, not the recipient. A counterparty is any other party involved in a transaction, but not specifically the recipient of the funds. While payee is a common everyday term for someone who receives payment, the standard banking and AML terminology uses beneficiary to denote the designated recipient for regulatory and record-keeping purposes.

In a funds transfer, the person or entity that will receive the money is the beneficiary. This term identifies the recipient named in the transfer instructions, and it’s the focal point for processing the payment through the banking system. The originator is the one who starts or sends the funds, not the recipient. A counterparty is any other party involved in a transaction, but not specifically the recipient of the funds. While payee is a common everyday term for someone who receives payment, the standard banking and AML terminology uses beneficiary to denote the designated recipient for regulatory and record-keeping purposes.