Some financial institutions deduct a charge or fee from foreign currency payments.
These charges or fees can be deducted by a financial institution acting as an intermediary or by the payee's own financial institution. We are advised that these charges or fees are normal international banking practice and it is customary for any charges to be met by the payee. Given these circumstances, it should be noted that any payment to a payee to cover its bank charges would most likely constitute a breach of s83 of the Constitution. This is because the reason for the payment, to cover an outside party's bank charges, would not be covered by an agency's running costs appropriation.