A Funds Transfer Agreement is a contractual agreement between two or more parties for the purpose of transferring funds from one party to another. It outlines when, how, and why funds can be exchanged, as well as the responsibilities of each party. This agreement helps ensure that all parties are aware of the risks associated with funds transfers, such as the legal implications and any possible penalties or fees. A Funds Transfer Agreement provides an organized approach to understanding the rules and regulations associated with transferring funds – helping to create a safe and secure experience for all involved.