Financial Banking Rules

[mtsoxfan]

I haven't found anything definitive online, is there anyone on here who knows, first hand, not internet regurgitation, laws/rules on making cash deposits to banks? I sold a tractor, and deposited a check into bank. When we went to buy a home, the bank, Chase, refused to recognize the money because I didn't have a receipt for the transaction, even though it was on a dealership check. Also, when moving, I carried a large sum of cash for on road emergencies. When I opened a bank account, semi knowledgeable about deposit amount flagging, I tried to deposit $5k. Had to explain where money came from. A second large deposit resulted in the same questioning. I kinda understand the reasoning, money laundering/drug money, but is there any requirement from the government where the banks must report deposit sums? Again, please no internet story regurgitations. Looking for a factually true answer from someone in the know. I'm as straight as they come, but seems like I made a mistake "keeping money under the mattress".

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[Rinn69]

Time for a new bank or credit union.

 

[Radioman]

My understanding is any cash deposit over $10k requires a Currency Transaction Report and a deposit using a personal check is just held for a short time to allow for verification of funds.

My experience anyways.

Edit: When I sold a vehicle with over $10 in cash (only happened of couple of times) I just told the clerk where the money came from. Was not big deal.

 

[mtsoxfan]

Time for a new bank or credit union.

Thing is, I have 3 banks, they all have questioned a deposit. I know it used to be a deposit over $10k would throw a red flag. Now, $5k does. I have multiple banks for a reason, joint account, my money account, and an account I've used since the 80's. I buy and sell items, like buy a cheap car, fix and sell for a profit.

 

[mtsoxfan]

My understanding is any cash deposit over $10k requires a Currency Transaction Report and a deposit using a personal check is just held for a short time to allow for verification of funds.

My experience anyways.

Edit: When I sold a vehicle with over $10 in cash (only happened of couple of times) I just told the clerk where the money came from. Was not big deal.

Pretty much the same with me. I just get an uneasy feeling when they pry into my business. maybe I'm overthinking stuff, again.

 

[Chris M]

I haven't found anything definitive online, is there anyone on here who knows, first hand, not internet regurgitation, laws/rules on making cash deposits to banks? I sold a tractor, and deposited a check into bank. When we went to buy a home, the bank, Chase, refused to recognize the money because I didn't have a receipt for the transaction, even though it was on a dealership check. Also, when moving, I carried a large sum of cash for on road emergencies. When I opened a bank account, semi knowledgeable about deposit amount flagging, I tried to deposit $5k. Had to explain where money came from. A second large deposit resulted in the same questioning. I kinda understand the reasoning, money laundering/drug money, but is there any requirement from the government where the banks must report deposit sums? Again, please no internet story regurgitations. Looking for a factually true answer from someone in the know. I'm as straight as they come, but seems like I made a mistake "keeping money under the mattress".

I can only speak to the Mortgage lender issue.
Back in the day I was a mortgage lender. Many of the programs we lent money from (FHA, VA, and Conventional) required us to adequately "prove" via reasonable explanation where large amounts of money came from when used for down payment. We had to get multiple bank statements to prove how long the money was in the account, letter from the borrower explaining the money hadn't come from a loan, and in your case we would have asked for a letter from the buyer of your equipment if there was no receipt available. This was back in the mid to late it's, so that's not a new policy you ran into.

 

[Rinn69]

I cashed a $10,000 check about 2 years ago, that was a gift from my mom. Took it to my credit union and cashed it. No questions or comments. I've also made 3,4,5 thousand dollar withdrawals from the same credit union, different locations, and never once was asked what it's for. Yes, I understand that some deposits over $10K will generate a report, but for an occasional transaction under that amount, I'd ask why they need to know.

 

[RedlandRanger]

I used to work for a bank, and while I didn't work in a branch, we still had to take yearly money laundering "training". Federal regulations change, but there are definitely very specific rules and regulations around "unusual" cash transactions in order to help prevent money laundering. I think sometimes the details of exactly what triggers suspicion is not necessarily well documented since people who want to actually launder money will just alter deposits to to not trigger it. I also think that some banks are more conservative than others.

Much of his has to do with what is "normal" for a given customer. There is an acronym "know your customer" that help reduce false positives for stuff like this. I would think that a long term relationship with a bank would not cause issues for a few large cash transactions from time to time - but there is definitely a lot of attention given to this.

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