General Question

Spargett's avatar

I'm about to make a large deposit, will the bank report this?

Asked by Spargett (5343 points ) April 18th, 2008 from iPhone

Its just shy of $10,000. I’d like to keep it low on the radar. I was just curious if there were any additional processes or governent reporting banks do for certain transactions.

Should I split up cash deposits or just do a check? You never know in a post 9/11 world.

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21 Answers

simone54's avatar

Why do you wanna keep it low on the radar?

ninjaxmarc's avatar

my buddy once worked for a bank and he told me that they report any cash deposits over 5000

jonofon's avatar

Don’t let 9/11 and other events activate your fear into living differently. Its probably a good thing that they keep on eye on anything over 5k. filter out the bad apples.

Unless your money laundering yourself?

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scamp's avatar

Report to who? I made a deposit of $30,000.00 post 911 and had no problem with it.

jrpowell's avatar

@Scamp.. It was most likely looked at. They just didn’t notify you of it.

richardhenry's avatar

What do you mean by “keep it low on the radar?”

If the money is stolen, don’t pay it into your account. If you don’t want to pay income tax on it, don’t pay it into your account. If the money is laundered, pay half of it in in two deposits and keep the rest for later, finding a suitable person to use as a gift originator.

Oh, and don’t give the game away by telling Fluther.

scamp's avatar

@johnpowell It’s possible. I guess if he wants to keep it under the radar he should trickle it into his account in smaller amounts then. I never had any reason to hide money, so I’ll leave it to the rest of you to figure out.

mcbealer's avatar

You should be OK if it’s south of 10K.
At 10K U.S. banks are required by the Patriot Act to file a cash transaction report or CTR. This amount does vary for other countries.

gooch's avatar

I agree 10k is the magic number. As long as it is less than that you are clear.

sndfreQ's avatar

mcbealer is right “on the money” (couldn’t resist). I used to be a merchant bank teller in a former life, and that CTR is standard issue…of course we can’t give you any legal advice, and the IRS and gov’t have a right to search anyone’s account if they have ‘probable cause’...we get to thank our lovely leadership and congress for that.

robmandu's avatar

Check out Wikipedia about the Currency Transaction Report, it’s instantiation, and procedures.

Interesting warning:

…if a customer reneges on their initial request to deposit or withdraw more than $10,000 in cash, and instead requests the same transaction for $9,999, the bank employee should deny such a request and continue the transaction as originally requested by filing a CTR. This sort of attempt is known as structuring, and is punishable by federal law against both the customer and the bank employee.

robmandu's avatar

BTW… just because a person doesn’t want the government monitoring his activity (whatever it is), doesn’t mean that what he’s doing is illicit, illegal, or even just embarrassing.

going offtopic… America is based on liberty and freedom, most notably from government, as framed and guaranteed by the Constitution. Many would argue that the federal government has exceeded the bounds of its responsibility in many areas (the Constitution specifically limits federal government power to those explicitly granted by the Constitution itself… all other implicit powers go to state governments or the individual.)

I’m not saying that the CTR is an example of such over-reaching… just that it’s certainly something we all as responsible citizens should evaluate and consider. If necessary, we the people can take action by contacting our various government representatives, speaking out, whatever.

Spargett's avatar

The money is not stolen, laundered, illegal, or anything of the sort. Its 100% legit. I just don’t believe in the government creating files on law abiding citizens for (in my opinion) on frivolous grounds. The thought that there’s a piece of paper work with my name and details thats sitting on some guy’s desk, who gets paid to try and read in between the lines and further investigate criminal activity, doesn’t sit well with me. (thanks robmandu)

There’s a tide that’s noticeably changed in America. And now in so many circumstances you’re innocent until proven guilty. This scenario being a good example. Just because I don’t live my life pay check to pay check like alot of people, I’m automatically laundering money, or selling drugs or whatever in the eyes of these corporations that are tied hand in hand with the government.

Again, I’m 100% legit. And on top of that, it’s insulting to my intelligence to assume that’d I’d be stupid enough to post my intentions all over the internet if there was any illegal activity. Sheeshh.

That’s for all the advice guys. Remember to stand up for what you believe in.

P.S. In reference to the Currency transaction report. It states “a customer is not directly told about the $10,000 threshold unless they initiate the inquiry.” This is not true. I’ve come across the knowledge that a teller is instructed to deny filings on all grounds. source

rking1487's avatar

Get a custom safe built under your bed or behind a picture. If you need the money to pay a bill or something like that get a certified check from the bank for the ammount owed. I hate having to have MY money be controlled by someone else.

LunaFemme's avatar

Pre-Patriot Act cash transactions of $10,000 or greater where reported to the IRS. This was the governments way of making sure you paid all your taxes. Post Patriot Act cash transactions of over 5K generate a SAR and is looked at for potential money laundering by terrorists. AND, the IRS is still notified of the cash transactions.

I believe at most financial institutions most cahiers / tellers must undergo patriot act training once a year. It is also part of the, “Know Your Client” requirements placed on financial institutions to look for money laundering. These training sessions teach you what to look for and how to report it. And just because you split a deposit in two it might still trigger a report. Especially, if you’re using travelers checks. The technique of structuring is also referred to as smurfing.

If this type of government behavior bothers you, I would suggest you become involved with your state affiliate ACLU. They are at the forefront of trying to repeal some of these provisions in the Patriot Act.

richardhenry's avatar

@Spargett: I was just joking, don’t worry. :) You don’t seem like the crooked type. To seriously discuss your question, where is the amount coming from, and is it in the form of a cash or cheque? I’m assuming it’s not a wire transfer, as there wouldn’t be much you could do about that.

imbalncd's avatar

I’m a professional money manager who run a runs a currency fund based out of NY. You can reach me “Avi” at 718–701-9891 for a no charge consultation. We also have an office in Miami as well. My companies website is www.FreeCapitalManagement.com and there is more info that you can review there.

robmandu's avatar

Yah, I’d so call that “Avi” right away and put your money in his hands. I’m sure that’s the best thing to do… trusting your funds to anonymous people on message boards.~

breedmitch's avatar

@rob: but what if he had 10,000 lurve?

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