3 ms·

How about a workaround: if you want to deposit less than $10K in cash, you first withdraw an amount that, when added to your original deposit, totals $10,001. T

by biot 12y ago

How about a workaround: if you want to deposit less than $10K in cash, you first withdraw an amount that, when added to your original deposit, totals $10,001. This automatically triggers the reporting requirement. If enough people made every deposit reportable, it would be like a denial of service on banks and the IRS.

mahyarm 12y ago
It won't be a denial of service TBH, since the american government in general has complete knowledge of financial transactions that go on between US financial institutions. This kind of report anyway can be reduced to a 1kb tuple. And your suggestion is an active behavior that will be done by a minority, that doesn't work.
thelogos 12y ago
You'll be surprised at all the people making "large" cash deposit, seemingly oblivious to the law. FinCEN is already bombarded with tons of information. In the process, some criminals slide under the radar and innocent people get caught up in the net. The $10,000 limit is not a hard boundary. Banks can and often do report people for making much smaller deposit than this, just to cover their ass. With inflation going higher, $10k is not that big of amount as it used to be. And we're not just talking about cash deposits here, everything is monitored including money order, wire transfer, checks. For example, if you have regular incoming wire transfer, and it doesn't even have to be international, you better have all the documents and explanation prepared when the IRS knocks on the door. In this scenario, if the bank is feeling generous, it will refuse to service your account and ask you to go somewhere else. Often times though, there won't be a warning. Your account will just get frozen, "pending reviews from our security department."
- toomuchtodo 12y ago
  Never before have I felt cash under a mattress was safer than in the financial system.

by biot 12y ago

mahyarm 12y ago

It won't be a denial of service TBH, since the american government in general has complete knowledge of financial transactions that go on between US financial institutions. This kind of report anyway can be reduced to a 1kb tuple. And your suggestion is an active behavior that will be done by a minority, that doesn't work.

thelogos 12y ago

You'll be surprised at all the people making "large" cash deposit, seemingly oblivious to the law. FinCEN is already bombarded with tons of information. In the process, some criminals slide under the radar and innocent people get caught up in the net. The $10,000 limit is not a hard boundary. Banks can and often do report people for making much smaller deposit than this, just to cover their ass. With inflation going higher, $10k is not that big of amount as it used to be. And we're not just talking about cash deposits here, everything is monitored including money order, wire transfer, checks. For example, if you have regular incoming wire transfer, and it doesn't even have to be international, you better have all the documents and explanation prepared when the IRS knocks on the door. In this scenario, if the bank is feeling generous, it will refuse to service your account and ask you to go somewhere else. Often times though, there won't be a warning. Your account will just get frozen, "pending reviews from our security department."

toomuchtodo 12y ago
Never before have I felt cash under a mattress was safer than in the financial system.