How third-party managed accounts support cross-border legal and financial strategies

Ask any lawyer who's handled a major international deal, and they'll tell you the same thing: money transfer is often the most nerve-wracking part. After months negotiating terms, reviewing contracts and coordinating across time zones, when it's time to move millions from point A to point B, there’s no room for error. 

International business is booming, with the global cross-border payment market projected to reach $320.7 billion by 2030 and Swift processing roughly 45 million cross-border transactions per business day. Behind each of these transactions are real people – lawyers, trustees, advisors and their clients – negotiating an increasingly complex web of regulations across jurisdictions. 

Because of this, third-party managed account (TPMA) services have become essential. They can be the difference between a smooth closing and a deal that falls apart because someone can't figure out how to safely move money from Singapore to Stuttgart. 

In this guide, we’ll explain what TPMA accounts are and explore how they make complex global business deals frictionless.  

Important: The information in this guide is general in nature, not legally binding, and should not be considered financial or investment advice.    

Key takeaways: 

• TPMAs are operational accounts, rather than simple escrow accounts. They hold funds securely on an ongoing basis, releasing them only when everyone agrees. 

• TPMAs simplify global compliance, handling complex regulations like KYC and AML, making multi-country transactions much easier and safer. 

• TPMAs build trust, acting as a neutral, regulated party, speeding up settlements and reducing miscommunication in cross-border deals. 

• The best providers understand diverse legal systems, cultural norms, and technical payment logistics, making international collaborations smoother. 

  
  

What are third-party managed accounts and when are they useful? 

In the simplest terms, third-party managed accounts are sophisticated operational accounts offered by neutral, regulated providers that are designed for both domestic and cross-border transactions. Built with international law and finance in mind, they hold funds on behalf of two or more parties, releasing them only when specific, pre-agreed conditions are met.  

TPMAs are useful in many difference scenarios: 

• Mergers and acquisitions: Used to secure deposits, manage milestone-based payments, and hold indemnity funds that may be required years after the deal closes. 

• International real estate: Whether it’s a London-based fund acquiring commercial property in Dubai or a family trust buying a vineyard in France, TPMAs help navigate differing legal systems and regulatory frameworks. 

• Trusts and foundations: Facilitate cross-border distributions while ensuring compliance with both the originating jurisdiction’s rules and the recipient’s local tax and legal requirements. 

• Dispute resolution and settlements: Serve as a neutral place to hold funds while parties finalise legal documentation – especially useful in multi-jurisdictional disputes. 

  
  

TPMA accounts are especially well suited to transactions involving multiple parties, currencies or legal systems, providing a single, unified structure that everyone can understand and trust. 

TPMAs simplify multi-jurisdictional compliance 

Here's where things get really interesting from a risk management perspective. TPMAs aren't just financial tools – they're compliance infrastructure. 

The stakes couldn't be higher. Global AML fines reached $6.6 billion in 2023, representing a 57% increase from the previous year. When you're dealing with Know Your Customer (KYC), anti-money laundering (AML) and counter-terrorist financing (CTF) requirements across multiple jurisdictions, the complexity grows exponentially. 

Third-party managed account providers handle this by offering centralised compliance that streamlines the onboarding process. Instead of each party navigating different KYC requirements in different countries, everyone goes through harmonised checks administered by the provider. 

TPMA providers help their clients stay ready for audit by collecting, verifying and soring documents according to international best practice. They also stay up to date with evolving global regulations, too, reducing compliance gaps across jurisdictions. 

For law firms and trustees, the compliance infrastructure they gain by opening a TPMA can be the difference between confidently taking on international work and turning away lucrative opportunities because the regulatory burden seems too risky. 

TPMAs make transactions more trustworthy 

Trust has always been the foundation of escrow arrangements – but in complicated, ongoing cross-border deals, where parties may never meet face-to-face and operate under completely different legal traditions, trust becomes even more critical. 

A third-party managed account addresses this by: 

• Acting as a regulated neutral party: All sides know their funds are held by a licensed, supervised entity that has no interest in the transaction's outcome beyond ensuring proper execution. 

• Enabling faster settlements: No more extended negotiations about payment logistics or debates about which country's banking system to use. 

• Minimising errors and miscommunication: Clear, written conditions for disbursement eliminate the ambiguity that can derail international deals. 

  
  

The real-world impact is significant. Industry research shows procedural uncertainty as a major source of delays in cross-border transactions, and TPMAs directly address this by providing a predictable, transparent mechanism for managing funds. 

TPMAs make it easier to work with global stakeholders 

Every region brings its own quirks to international transactions. For example, a family office in Singapore might need Sharia-compliant structuring. In contrast, a German corporation could require euro-denominated arrangements under EU financial services law. Meanwhile, a Cayman Islands trust might need to satisfy both UK beneficial ownership rules and US reporting requirements. 

The best third-party account providers understand these nuances. They bring regulatory expertise – in other words, they know not just what the rules are, but how they're actually interpreted and enforced by local authorities. 

Beyond competence in compliance, experienced TPMA providers understand global cultural and professional norms. For example, they know that certain jurisdictions prefer particular documentation styles and timing for fund releases. 

Finally, high-quality TPMA providers have the technical infrastructure in place to handle currency conversions, correspondent banking relationships and payment rails across different countries, making them invaluable to legal and financial professionals. 

The bottom line on TPMA 

With the cross-border payments market projected to reach $414.6 billion by 2034, the complexity and importance of these transactions will only continue to grow. Third-party managed accounts provide the structure, safety, and strategic advantage that legal and financial professionals need to execute high-value international deals with confidence. 

The alternative – trying to coordinate complex fund movements across multiple jurisdictions without proper TPMA infrastructure – increasingly looks like professional malpractice in a world where regulatory scrutiny is intensifying and client expectations are rising. 

For law firms, trustees and advisors navigating international transactions, partnering with a global third-party managed account provider like Interpolitan goes beyond convenience. It's about having the infrastructure, regulatory knowledge and operational support needed to serve clients across borders without losing sleep over compliance risks or fund security. 

If you need support for a major cross-border transaction, get in touch with us today to learn about Interpolitan’s TMPA solutions.