The dreaded 10K transaction RED FLAG!?!

Journeyman · Mar 14, 2004

Are all 10K transactions investigated by the U KNOW WHO? How can figure of 10K still after all these years be the magic number? Afterall 10K 30 years ago is entirely different now?

Say you want to buy a car and want to spend (either but outright or put down 20K- 30K) is there any way around it...Or if you buy a car from a private party for 30K and you breakdown the payments into smaller amounts..Is this safe?

Thanks

blueedwards · Mar 14, 2004

it is only a red flag if it is a cash transaction. also, if you are doing a $10,000 cash transaction with a private party, it will not be a problem unless the private party reports it (which he has no incentive to do).

the most common issue is, you walk into a bank and deposit $10,000 in cash into your account. the bank has to (by law) fill out a report that goes to some agency showing this large cash transaction.

the way around this is:

1) get two bank accounts at two seperate banks and deposit $5,000 in each

2) deposit $5,000 on monday. come back on wednesday or thursday and deposit the other $5,000.

TheGeneral+ · Mar 14, 2004

The IRS could prob round up a million+ people if they wanted. Just not enough manpower or time to deal with us all. And no need. They got no where to put us, unless cuba can hold us LOL. Jails are full and courts are booked. Fuk em'

Live for the day. Tomorrow may never come.

stew · Mar 14, 2004

good points, General....plus the gov't is too busy prosecuting celebrities like Martha Stewart to worry about us.

TheGeneral+ · Mar 14, 2004

Not to mention to busy slandering each other like a bunch of little girls

Fishhead · Mar 14, 2004

Good to hear General.

lander · Mar 14, 2004

Just cash? No cheques?

I just closed my old place and was given a bank issued cheque, and was curious.

thx.

Phaedrus · Mar 14, 2004

See also:

Moving money around

Phaedrus

Rude · Mar 14, 2004

Just a questions that comes to mind for the Americans ...

Since you have to "let the man" know of any money you won (ie Gambling winnings like when you go to Vegas and Offshore) do you guys include your winnings at tax time ???

If so, do you also claim your losses ??

Rude

blueedwards · Mar 14, 2004

<BLOCKQUOTE class="ip-ubbcode-quote">quote:<HR>Originally posted by lander:
Just cash? No cheques?

I just closed my old place and was given a bank issued cheque, and was curious.

thx.<HR></BLOCKQUOTE>

yes, just cash. if a bank had to report all transactions over $10,000, they'd never have time to do anything else.

there are very, very rich people out there who write checks for things like a brand-new mercedes...no one blinks an eye at that. now, if they walk into the dealership with a suitcase full of $100 bills, they'd have to fill out all sorts of forms.

[This message was edited by blue edwards on March 14, 2004 at 08:45 PM.]

acw · Mar 14, 2004

yes, just cash.
In Holland these days they are even that smart that you have to fill out a form for receiving an oversee's money transfer over 10,000 Euros. It is getting slightly more difficult, but there are still many places in the world where one can make a cash deposit without any questions being asked and then transfer it to anywhere (including Holland) in the world.

JeanneS · Mar 14, 2004

I think it is just cash transactions too. When my husband and I bought our house four years ago, we put down $25,000 at closing, and I went to the bank that morning, and asked for a cashiers check for the entire amount, and no one made me fill out any paperwork. I never heard anything else about it, so I'm assuming it was fine.

blueedwards · Mar 14, 2004

the reason it is only for cash transactions is that with cash, there is no paper trail. if you were going to launder money gained by illegal methods, you would likely have cash. most bookies, hookers and terrorists don't take checks.

BillDozer · Mar 14, 2004

It is ilegal to try to avoid your transactions of being flagged. Technically getting multiple bank acct and using certain amounts is a against the law.

You can't win.

lander · Mar 14, 2004

Jeanne,
I just read an interesting article about "white flight" in Cheektowaga.

Sad stuff in this day and age

Thx for the info everyone. That makes sense Blue.

blueedwards · Mar 14, 2004

<BLOCKQUOTE class="ip-ubbcode-quote">quote:<HR>Originally posted by BillDozer:
It is ilegal to try to avoid your transactions of being flagged. Technically getting multiple bank acct and using certain amounts is a against the law.

You can't win.

<HR></BLOCKQUOTE>

bill, i meant two accounts at two different banks. obviously, the banks aren't stupid. if you come in one day and deposit $9,999 in cash, then come in the next day with $9,999 in cash...they will report it as a "suspect transaction". you are much better off either keeping cash in a safe deposit box or having accounts at many different banks.

mvbski · Mar 14, 2004

Blue have you open'd a bank account lately thanks to the Patriot act they want everything but a DNA sample knowing Ashcroft that is probably next

Railbird · Mar 14, 2004

Ask Jon Rogers of Carib how safe his safety deposit boxes are.

Tellitlikeitis · Mar 15, 2004

Journey, you are way off, the red flag number has been lowered to $2,500 for a long time now. If you have any friends that work at a bank ask them and they will confirm.

tgoodm1 · Mar 15, 2004

<BLOCKQUOTE class="ip-ubbcode-quote">quote:<HR>Originally posted by Tell it like it is:
Journey, you are way off, the red flag number has been lowered to $2,500 for a long time now. If you have any friends that work at a bank ask them and they will confirm.<HR></BLOCKQUOTE>

Tellers don't get paid enough to take this ($2500) seriously. I would say that the average salary for a teller is 20-22k annually. Just not enough incentive for them to take on the role of investigator. Besides, the added paperwork only complicates their day.