Large EFT withdrawals -- important question

[dogs24]

Did a little research on US law...

...discovered that there's a form the government provides to banks, in which they ask banks to report transactions of $5,000 or more (deposits, withdrawals, anything) that seem out of character for the individual depositor, and thus, seem suspicious.

"Suspicious" has a broad range of definitions...money laundering, terrorism, etc.

5 thousand dollars?! That's not an enormous sum of money. Firepay and Neteller will do EFTs of that size...

Does anyone know if Firepay or Neteller raise a flag with US banks when large transactions come through? Do they report them automatically, knowing that NT and FP are gambling conduits?

How does one avoid the scrutiny...do the big players only cash out via FedEx? Even then, you have to deposit your check at a bank...

????

 

[TheFunkMonkey]

Banks can fill out a form for *any* suspicious activity. Doesn't have to be $5000.

But how do you define "suspicious"? And do most of the bank employees even care? If some guy always had transactions in the $200-300 range, and then he suddenly deposits $4700, I'm not gonna care.

 

[Phaedrus]

See also:

Moving money around

The dreaded 10K transaction RED FLAG!?!


Phaedrus

 

[GreenDoberman]

Funk,
to somewhat answer your question,casinos have a similar form called a SARC. Suspicious Activity Report. Basically if it looks like a person is laundering money, trying to circumvent the money laundering laws, or derives their money from an illegal source (e.g. drug dealing), they are eligible for a SARC.
In reality, this form is rarely, if ever, used. I had drug dealers, pimps and prostitutes peeling off twenties and hundreds on a daily basis in North Las Vegas. Would I ever consider them for a SARC? Hell no, because if I pissed them off and lost them as a customer the casino would lose money and I would be out of a job. It is not my job to judge what people do or if they pay their fair taxes, that is the governments line of work.
So in reality, unless someone has a grudge against you, they would never file one of these.

 

[dogs24]

Phaedrus --

I read through the entirety of both threads.

Still doesn't help me answer some vexing, pertinent questions...although your posts in particular were highly informative and well-written.

Have you an email address I can write to to elicit some info?

 

[TheFunkMonkey]

dogs24,

I think GD gave you the best answer:

There is no way to be 100% sure that your transaction won't raise some red-flags. Most of the time, it simply depends upon the bank teller, casino employee, etc. If they're anal enough, they can probably complete a form for ANYTHING. But most people:

1) Aren't that anal.
2) Don't feel like doing the paperwork.
3) Don't want to lose customers.

Anyway, I don't think you have anything to worry about. Unless you're planning to move a ridiculous amount of money in a short period of time (for example, $80,000 in five days), I doubt your bank is going to care.

Couple years ago, I went to my bank for the first time. I opened my account on the Internet, my paychecks were direct-deposit, I always used ATM machines. So in 3-4 years, I had NEVER made a personal visit to a branch. Anyway, I was coming back from a very profitable trip to Atlantic City. I walked up to the teller and gave her several grand in $100 bills. Gee, ya think that was "suspicious"? I appear out of nowhere with a stack of $100 bills? FYI, this was a couple months after 9/11. Anyway, the bank didn't care. No forms, no questions.

(Unfortunately, I went back to AC the next month and lost most of that money!)

Bottom line, I think you're stressing too much.

 

[Phaedrus]

dogs24

As Funk Monkey said, GD pretty well answered your question, but feel free to contact me anytime at phaedrus_rx "at" mailvault "dot" com.


Phaedrus