10k bank deposits

gbogo · Apr 21, 2007

theres been some banks in new york get in trouble for money laundering and have called in consultants to go through their procedures and records with the feds.

as it happens one of my friends is involved in the team at the largest bank.

in terms of the 10k deposit rule the instruction is to flag people if there is an appearance they are trying to circumvent them breaking the 10 k rule

for example you deposit 9500 9500 9500 9500 9500 9000 9800 .. you will get flagged

also its better not to deposit even money amounts, he suggests the best way is to deposit between 4-5k to stay well under the radar.

if you have tonnes of cash you need to bank then slip in one deposit of like 12,330 because they will then reset the number of deposits you are making back to 1 again, making them think you arent trying to break the rules.

a note on countries they have an instant report filing process of transactions for certain countries ...I didnt ask about sportsbook type locations but certain countries they auto flag for approval.

the banks who got in trouble for this are not the small ones its the main large ones who are getting fined and audited at present fwiw

gbogo · Apr 21, 2007

i may have used a wrong word - your not doing anything wrong banking the money no matter the amount, its just that your going to force the bank to file suspicious activity reports on your actions, the consequences will depend on the total amount.

depending on the country wiring money will require approval, and yes at present they are blocking transaction for some world leaders.

Extraordinary_5 · Apr 21, 2007

People are worry about depositing 10ks now days...LOL

Just deposit the god dame money all at once, it's not like that you're depositing a couple million.

lander · Apr 21, 2007

9500 9500 9500 etc ... is called structuring. It's up to the banks to determine is their is suspicious activity (including structuring) and file an SAR (Suspicious Activity Report). These are bad.

If you just deposit 10K you get a CTR filed - not as bad.

Birdman · Apr 21, 2007

sean1 · Apr 21, 2007

It is not illegal to deposit over $10000.

Deposit whatever the hell you want and pay taxes.

Sean

D2bets · Apr 21, 2007

sean1 said:
It is not illegal to deposit over $10000.

Deposit whatever the hell you want and pay taxes.

Sean

It's possible to deposit large sums without making profits requiring taxes. Happens to millions of businesses.

lander · Apr 21, 2007

Furthermore, the discression of the SAR filings takes into account past banking habits. For instance, if a reputable, wealthy business owner constantly deposits 10's of K each month, there's nothing suspicious about it. Most likely only CTRs would be filed.

Say I deposit 50K yearly from my employer paycheck and they suddenly deposit 50k from offshore accounts in a small time frame using structure deposits you can bet your ass a SAR would get filed. Customers aren't notified about SARs.

Best advice is this thread is - pay what you owe to the tax man. If you have nothing to hide, then you have nothing to worry about.

While only a small % of people are audited, the penalties and stress involved for playing games to avoid taxes isn't worth it.

This stuff is all regulated by the Feds. I'm not sure what CTRs are used for, but I'd theorize they are used to calculate audit targets (say you had 10 CTR, but claimed 15K in income ... where's the other 85K+).

sean1 · Apr 21, 2007

CTRs are used to keep track of money movement.

If I wire money to someone, there is a record.

If I take out 5,6,7 figures in cash and they deposit it, now there is a record.

CTRs are generally used to watch for drug deals and terrorism... As a side effect, the IRS uses em.

Sean