Why am I asked the purpose of my transfer?

You are asked the purpose because banks and payment firms must carry out compliance checks, including anti-money laundering rules, and the purpose helps them do so. Typical answers include family support, education, gifts or investment. Answer accurately, because a purpose that does not match reality can cause delays or a returned payment later. If none of the options fits your situation, ask the provider's support team which one to choose instead of guessing. Keep your records in case you are asked to explain the transfer.¹