Banking and Your Privacy

I was of the understanding that banks only report transactions that are more than $10,000 in one business day, but I have come to read that due to the "Know Your Customer" provisions, they will report anything that is out of the ordinary (meaning they get a typical picture of your regular deposits and withdrawls, and huge deviations result in a transaction report). I trust the advice of a lot of people on this forum. I will soon cash out of an online site and will be receiving a check for a little over $3500. I was going to just deposit it into my account, but some of these articles I have read give me pause (I have less than 2k in my account and typically make deposits and withdrawls in the couple hundred dollar range). Should I be worried? Am I going to be put into some database? Or am I being paranoid? I am only slightly ahead for the year even with this (maybe $500) but I have no specific records, etc. I'd rather not have problems. Go to a check cashing place at 4% (not high on my preference list)? What are my options or am I reading WAY too much into this? Should I just deposit it and see what happens?


Concerned

main thing is you will probably get a lot of junk mail and maybe telephone solicitation.


brad

What do u mean? Don't worry about it or what? I'm not following u....junk mail I can handle...


Concerned

banks sell all your private information for commercial purposes.

Banks report *cash* transactions. Depositing a check will not generate any sort of report. In any event, why do you care if the bank reports the transaction. You aren't laundering money, are you?

I think AFish is right about what they report, but if this is such a worry why not just pay checking cashing fee and forget it?

I was a banker for 20 years, but it's been six years now since I got out, and I can only speak to my particular bank's policies in Canada. Not sure about the US policy in this regard, but I wouldn't sweat it.


Your cheque wouldn't draw so much as a blip on the radar here. We were concerned with large cash transactions, and anyone that deposited $10,000 or over at one time, or repeated amounts just under that limit that appeared out of their ordinary course of business, had to fill out a Declaration of Source of Funds. If in my judgment, the story sounded fishy, we were in our rights to refuse the deposit and ask the "client" to take his business elsewhere.


The intent, of course, was to make life difficult or impossible for drug dealers and money launderers. Your $3,500 deposit from a legitmate source would be of no concern to me as your banker.


Just my take.

Check out this passage from an article explaining some new FDIC policies...Did this pass or was it just proposed? Whole article can be read at

http://www.networkusa.org/fingerprint/page1b/fp-kyc-summary.html


By the way, I appreciate all your comments, and u are easing my concerns, though I am still a little nervous...what do you think of this?


MONITORING OF TRANSACTIONS:

Bank customers will be required to reveal all sources of revenue (income). Accounts will be monitored to evaluate actual deposits compared against projections.

Banks will establish profiles, classifications, and categorizations based on information supplied by the customer and other gathered information. All customers will be compared against the subjective classifications. Perceived anomalies in deposits or withdrawals will be reported as "suspicious activity."

Banks are prohibited from informing customers when suspicious transaction reports have been filed on them.

Modern "new technologies" to monitor and regulate cross-border transfers of cash will be instituted.

Sir:


As a former IRS Agent, and a law enforcement official, let me assure you that your $3,500 deposit is de minimus and will generate no activity whatsoever.


Frank Donnelly

If you are really concerned, why not cash out in stages for $500 at a time (say every 3 days submit a cashout request).


I don't think you have anything to be worried about in any event.

Law enforcement official?? I had no idea...


Good thing I got my I-pass before we started riding to the poker room together.

(I used to blow off a toll every now and then) /images/smile.gif

Well, who is going to reimburse the banks for all this monitoring? With the streamlined workforces in place in most financial institutions these days, they simply do not have the people and resources available to monitor accounts to this level, IMO.


I am not saying that banks should not be vigilant to protect the public interest in terms of making their staff aware of suspicious activity. But as in any retail operation, "Know Thy Customer" is a very important mantra. I would be very surprised if the FDIC placed this level of onus on the banking industry for monitoring.

Kevin:


Your transgressions were duly noted.


IRS Frank

I am fairly sure that the FDIC regs were never implemented. In any event, I am also fairly sure that the proposed regs were being distorted on the link you posted.


Look, if you deposit any check in the bank you are creating a paper trail. I really don't see how bank reporting matters, unless you are a crook.

Not every bank does. You are slipping into Algerian paranoia.

new laws went into effect recently. you now have to 'opt out'. i doubt any bank would pass up a freebie.


brad