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I'm surprised that this applies to cheques. Can someone from the region explain this? In Canada cash transactions over $10k are possible but require a large a
by cperciva 4y ago
I'm surprised that this applies to cheques. Can someone from the region explain this?
In Canada cash transactions over $10k are possible but require a large amount of extra paperwork for anti-money-laundering reasons, but there's no such restriction on cheques since the government can see all those clearing through the banking system already.
- solatic 4y agoIn Israel, checks are basically legally-enforced IOUs and are thus nearly the same as cash. Once a check is written in a particular amount, that check can be transferred to another party. If the check bounces, that party can take the person who wrote the check to court and begin legal proceedings to enforce a recovery of the funds in the amount listed on the check. Israel has a state institution, Hotza'ah LePo'al, which enforces the collection and payment of debt through means like garnishing wages and cancelling passports. To evade taxes, one merely needs to trade in such IOUs without actually cashing them out.
- ars 4y ago> To evade taxes, one merely needs to trade in such IOUs without actually cashing them out. So because the law about bounced checks is so strict, checks are essentially as good as cash? That's an amazing unintended effect.
- cperciva 4y agoAha, interesting! In Canada it's possible to "countersign" a cheque, allowing it to be cashed by a third party, but in practice it's extremely rare and many banks refuse to cash such cheques. It never occurred to me that this mechanism could be used for money laundering!