Can settlement funds be redirected to a bank account in a country different from the payout country?

The answer is yes, you can provide it provided a couple of certain conditions are met. There are essentially three conditions that should be met. First, the US money transmitter and the payout partner must have a correspondent agreement. In that agreement, there should be a provision saying that that money can travel outside and they will not be breaking any law in the country, meaning the payout countries.

The second condition is wherever the money is going, the account must be in the name of the payout partner. If you have an account in China, it must be in the name of the payout partner, if you have a bank account in the UK or in Europe, the account title must be the same as the payout partner.

The third condition is that that account title must be a proper bank account. It cannot be an FBO account for further credit into someone else's account but further credit into someone else's account. This cannot be the case. It must be a proper bank account with an IBAN and it must be in the name of the account title holder, which is the payout partner. So, only in such cases is money allowed to be redistributed or redirected to a different country and then you can use it for whatever purpose.