I've had 2 people tell me recently that they were questioned as to why they were making such a sizable cash withdrawal from their bank account. One was trying to withdraw $7500 to have on hand and the other $5000. One felt so harassed that she told them that she was buying a used car from a private seller. The bank then insisted on a cashiers check so she told them the seller will only accept cash. Are you required to justify why your wanting to withdraw cash from your account?

It's a damn shame that she felt compelled to lie to the teller in order to get her money. For whatever reason, she wants about $30,000 cash on hand and was going to do this once a month over the next several months but is now afraid to go back.

Probably trying to stop people suckered into online scams.

The bank is overstepping their bounds here. The most they should do is offer an escort to their car. I have never been questioned about large cash withdrawals.
I would advise her to call one of the bank Vice Presidents and explain how she was treated.

It’s common. Every time you deposited or withdraw more than $10k the bank has to report it. Anti money laundering legislation. They can ask you why, but you don’t have to give them a reason. I never give them a reason if they happen to ask. I just politely say “because it’s mine” and they move on with getting the money.

Agree with the above, but gotta ask, $30k in cash? The bank itself is likely safer, fire, theft.

Beans & bullets could be more useful.

Last time I withdrew close to 10K in cash, they politely asked me to phone ahead next time because they don't keep that much cash on hand. Probably same with this bank.

quote:

Are you required to justify why your wanting to withdraw cash from your account?

No, but....

quote:

trying to stop people suckered into online scams.

This is the likely reason. I spend a fair amount of time in banks and am very friendly with several of the employees that work at my personal bank. They talk about this all of the time, and say that they probably stop people from getting scammed several times a week.

For those who don't want to take the bank's word for it, there is a local police officer who also banks there that is happy to explain it to them. When he's on duty he's been known to stop by at the bank's request to talk to the person wanting to take their money out.

Also, if she has that much money in the bank, she should have some sort of private or preferred banking status. I would never go to a teller for a $30k withdraw. That draws too much attention.

Call ahead and your private banker will have it ready for you in a side room. For most banks, $100k in savings gets you at least some sort of preferred/personal status.

quote:

Are you required to justify why your wanting to withdraw cash from your account?

Nope .... tell them to mind their own business or get another bank.

I might be way off here...I transferred $10,000.from savings to checking to enable Fidelity to purchase various funds. The bank told me they must report such large transfers to the feds. I think $10,000. was the trigger at least in my case.

Had a credit union teller do something similar. Told her it was none of her business but she pressed the issue.

My retort was, I wanted it all, now, in cash. The reason is because I'm closing my account. Then came the cashier's check theory. I raised my voice just enough for the manager and others in line to hear, "what do you mean this credit union doesn't have enough money for me to withdraw mine? Are you gong bankrupt?"

Got my money, in cash, and opened a new account elsewhere.

As usual...most people quote the $10,000 figure to trigger a notification to the IRS.

Couple years ago I was told by a friend who is a Forensic Accountant with the FBI that there is also a notification trigger at the $8,000 level that is not widely known. It was put into place from Sept 2011.

He has never discussed this further with me and I have not asked for additional information.

Andrew

quote:

Originally posted by esdunbar:
It’s common. Every time you deposited or withdraw more than $10k the bank has to report it. Anti money laundering legislation. They can ask you why, but you don’t have to give them a reason. I never give them a reason if they happen to ask. I just politely say “because it’s mine” and they move on with getting the money.

quote:

Originally posted by esdunbar:
Also, if she has that much money in the bank, she should have some sort of private or preferred banking status. I would never go to a teller for a $30k withdraw. That draws too much attention.

Call ahead and your private banker will have it ready for you in a side room. For most banks, $100k in savings gets you at least some sort of preferred/personal status.

Dude, you REALLY need to actually read (and comprehend) the OP!

Lol good catch. To be fair, I was told we had to “read” them. There was no mention of comprehending what was read. I did miss the $30k wasn’t one withdrawal. I knew the other ones were under $10k at least. Partial credit?

Well played sir. Well played.

BSA. Bank Secrecy Act.
Requires reporting to the feds of withdrawals or deposits of $10,000 or more (or withdrawals/deposits obviously structured to avoid reporting requirements. i.e. multiple $9,500.00 deposits)
For $5,000 or $7,000 I’d tell them to pound sand.
But, that kind of business is better conducted in private, not at a teller line.
Years ago I went to my (at the time)boss’s bank on Brickell Avenue in Miami to get petty cash for a boat trip to Nantucket. $50,000. Went to the teller line and handed the check over. She said just a moment I’ll need to get more cash. I stopped her and asked her to please send me to a manager to conduct this business privately, which she did.
Talk about a tight rear end, walking out of a bank in Miami with $50,000 in cash in 1988...

quote:

Originally posted by esdunbar:
Lol good catch. To be fair, I was told we had to “read” them. There was no mention of comprehending what was read. I did miss the $30k wasn’t one withdrawal. I knew the other ones were under $10k at least. Partial credit?

Well played sir. Well played.

Incredible, if not spectacular timing as well....Coincidence?

Back again, to "READ threads before you post to them"

quote:

Originally posted by recoatlift:
I might be way off here...I transferred $10,000.from savings to checking to enable Fidelity to purchase various funds. The bank told me they must report such large transfers to the feds. I think $10,000. was the trigger at least in my case.

My daughter is in the banking business and said while $10K had always been the "trigger" amount it now is more complicated. Years ago one could say deposit or withdraw smaller amounts multiple times to avoid being reported but the Feds caught on to that trick and hold the banks responsible to monitor the number as well as the amounts. So withdrawing even say $2,000-$5,000 at a time over a week or more is to be reported if "not typical". Bank doesn't report it and it turns out to be related to criminal (IRS) activity, the bank is subject to fine as well as a lot of grief from the Fed.

quote:

Originally posted by Oz_Shadow:
Probably trying to stop people suckered into online scams.

I know this is a hassle, but I’d appreciate my bank doing this. Much better to “endure” their questions than to have them hand over the money without a word even if they suspect you’re being scammed.

Everytime I deposit more than about $3k, they ask me to update my job title. Really thinking it's none of their damn business.

One must also be aware of charge of "structuring", where withdrawing or depositing amounts over time to avoid triggering a "cash transaction reporting" can be considered a crime.

(I was briefed this in the military when doing a lot of back to back TDY's over several months and having several lump sum payments of travel vouchers submitted and paid in cash from Accounting and Finance, and then making deposits.)

This was back when cash payouts and cash deposits to banks were the norm.

I thought it was odd that I could be charged with a crime simply putting my money in the bank in a certain fashion.