BFF LEGAL offers Paymaster services to many clients, both domestic and foreign. We assist our clients in various dealings ranging from real estate to commodity transactions, such as oil, jet fuel, gold and diamonds.
All such transactions must be compliant with federal authorities, including the U.S. Treasury Department and Homeland Security. We assist and work with such clients to ensure prompt payment of their fees within the guidelines of governmental authorities and regulations.
Placing the funds in escrow with a neutral and trustworthy third party reduces the risk to the parties involved in these transactions, for example buyers and sellers in a purchase of a particular asset. It assures the seller that sufficient funds are available for payment, and it allows the buyer to receive title to the goods in question.
What is a Paymaster and what services do they provide?
A Paymaster Attorney acts as a neutral third party to receive funds from any transaction between two separate individuals or businesses. The Paymaster maintains an escrow account, then disburses those funds to the seller or the appropriate recipient. After taking a small commission as payment for his services the paymaster reconciles the escrow account and fills out the necessary IRS paperwork.
Paperwork must include the following for all parties seeking to employ BFF LEGAL as their paymaster and escrow provider:
❖A copy of valid driver's license and/or passport.
❖Complete IRS form W-9 for U.S. citizens involved.
❖For non U.S. citizens: Completed IRS form W-8BEN.
❖Copy of all transactional documents, including payment agreement.
❖Recorded report of pending dealings that BFF LEGAL is involved with (if any).
Note: Payments and disbursements can only be made in the form of Federal wire transfers of SWIFTs. Cash, money orders or bank checks are NOT permitted.
Does a Paymaster have to be an attorney?
Paymasters do not have to be attorneys. However, attorneys often serve in the role of a Paymaster because they are able to use Attorney's Trust Accounts (also known as IOLTA accounts, which are used for short term escrow transactions). These are monitored by the state bar where the attorney is licensed and provide an additional measure of security for handling large sums of money.
As a licensed attorney, the Paymaster is subject to heavy penalties and stands to be disbarred if any funds are misappropriated. The Paymaster may not provide legal services for any of the Paymaster clients, since it is considered to be a conflict of interest.
The Paymaster is not party to the transaction and does not know the exact time that it will close. Part of his job is to check periodically with the escrow account to ensure that the payment has been transferred in, then to disburse the funds as per his directions. Nor is the Paymaster allowed to disclose the identities of the parties to the transaction.
Paymaster services facilitate the transfer of commodities and financial instruments without the inconvenience that can arise through using Letters of Credit. No credit scores or bank references are required of either party. New companies with no established credit history can trade freely.