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Monetary Funds Escrow & Paymaster Services

 

As a trusted third party, our escrow agreements can facilitate your transactions by receiving and verifying funds, and then securely transferring funds to your designated payee(s) upon request. Whether your transaction is for Merger\Acquisition funding, construction projects, or other commercial ventures, we can safely and reliably transfer funds from buyer to seller to brokers to approved third parties with a customized escrow agreement to meet your needs. Our paymaster escrow services are supported by the FIDELITY treasury management system.

Paymaster Services:

Warring & Co, LLC, CPA (“WCO”) provides confidential services for all types of financial transactions. We offer Paymaster services to many clients, both domestic and foreign. For transactions involving real estate and commodities, including jet fuel, oil, gas, precious metals and gem transactions, or goods such as personal protective equipment (PPE), you can rely on WCO as a trusted intermediary. All such transactions must be compliant with federal authorities including the U.S. Departments of Treasury and Homeland Security. To protect all parties on high dollar contracts, WCO as a neutral third party provides security for all interested parties. 

We, at WCO, act as a neutral third party to receive funds from any transaction between two separate individuals or businesses. WCO as the Paymaster maintains an escrow account with a Trustee company, then disburses those funds to the previously approved interested parties. WCO is responsible for all necessary paperwork for all interested parties in a transaction, including:

  • Securing copies of valid driver’s license and/or passport.
  • Completing IRS form W-9 for any U.S. citizens involved
  • For non U.S. citizens: Completing IRS Form W-8BEN
  • Copy of all transactional documents, including payment agreements

Note: Payments and disbursements can only be made in the form of a Federal wire transfer. Cash, money orders or bank checks are not permitted.

Regardless of whether we are paying an individual or company within or outside the United States, we must report all monies received and disbursed from our trust account. Because we report to the Internal Revenue Service (“IRS”) for compliance purposes, it is the sole responsibility of the individual or company to pay any taxes due to the IRS.

OVERVIEW – IN GENERAL:

Paymasters are usually used in transactions which involve large sums of money. For example, the transfer of large quantities of various financial instruments and commodities such as oil, jet fuel, gold or steel typically involve millions of dollars. The Paymaster’s services can be used to facilitate the payments and disbursement of funds.
Placing the funds in escrow with a neutral and trustworthy third party reduces the risk to both buyers and sellers in these transactions. It assures the seller that sufficient funds are available for payment, and it allows the buyer to receive title to the goods in question.

A paymaster is someone appointed by a group of buyers, sellers, investors or lenders to receive, hold, and dispense funds, commissions, fees, salaries (renumeration) or other trade, loan, or sales proceeds. The primary purpose of a paymaster is to receive fees via an Escrow Account by buyers in a large transaction, and disburse to the sellers and brokers on the transaction. Most buyers and sellers of such transactions want to place the money with a neutral third party for disbursement. In most cases, the buyer and the seller involved in the transaction require a paymaster be named to handle all incoming and outgoing funds.

A paymaster is a neutral third party and has no knowledge of any particulars of the transaction. They handle the incoming commissions, and then disburse the funds accordingly. In return for their services the paymaster charges a fee, which is paid directly to them out of the commission proceeds prior to disbursement.