Originally Posted by
dnfuss
What you had was indeed what in law is considered a negotiable instrument, as checks almost always are. The test is not whether anyone can cash/use it. That is a test for whether or not it is a bearer instrument. But all of this is irrelevant. The IRS prohibition described in Pub 519 is against transporting what they define as "monetary instruments," and as your OP notes, the check you had is specifically excepted from that definition. You did nothing wrong. Having said that, cashier's checks are treated differently than the usual personal check for certain purposes, and it is not a great idea to use them when not needed. International wire transfers don't need to cost "hundreds of dollars." Maybe $25 instead of $10. Currency conversion is a separate issue, independent of whether the instrument is a check or a wire transfer. The next time you need a large amount of money to be deposited to a foreign bank, have a wire transfer done. If your local bank says they can't/won't/don't know how to do it or that it will cost you a fortune for the wiring, find another bank.
Currency conversion is never a separate issue when sending money from a US bank (dollars) to a bank in another country that uses a different currency. For example, to send a wire to a French bank, the US bank sends dollars and charges you a fee. The receiving bank will also charge a fee but will immediately convert your dollars to euros, and that conversion often involves a hefty percentage kept by the bank.
HSBC says they convert at wholesale rates for customers with large balances but the only person I know who used them for that wound up having to pull teeth at the european bank to get the big mark-up reduced.
If you can get the US bank to wire in the foreign currency, and if they convert it before transfer at a known, good wholesale rate, then the cost to do this might be very cheap. Charles Schwab used to be able to do this based on their affiliation with a large, international bank. That was several years ago and I don't know if that still holds.
If anyone knows how to get a transfer to a European bank done for $25 including fees and currency mark-up, it would be very helpful to share that information.