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Thread: Depositing Large amounts of cash… legally

  1. #1
    fburke is offline Member
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    Depositing Large amounts of cash… legally

    What is the name of your state (only U.S. law)? OK


    I have an older family member that has always had a mistrust of banks and kept very little money in them except for paying monthly expences opting instead to use a safe in his home building up the amount over the years.

    Recently his spouse passed away and is having trust issues with his son and now he’s afraid of having all that cash in his home. He wants to put it in a secure financial institution but he doesn’t know how to…

    He’s paranoid that if he shows up at a bank with large amounts of cash they’re going to think he got this money from some illegal activity. This is all money he has earned over the years by being self-employed he’s paid his taxes..but rather than depositing checks into a checking or savings accounts he cashed them instead and put the money in a safe.
  2. #2
    swalsh411 is offline Senior Member
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    Who cares what the teller thinks? Banks aren't the police and no crimes have been committed. He doesn't have to explain himself to anybody. If they start asking questions (which they shouldn't) then he can take his business elsewhere.

    As far as I know, the only way to deposit cash into a bank account is to take the cash to the bank so he really just needs to get over his irrational fear.
  3. #3
    fburke is offline Member
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    I agree but he's afraid of IRS filings because of the amount and them sizing his money doing an investagations tax audits..ect..
  4. #4
    swalsh411 is offline Senior Member
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    If one has properly filed and paid their taxes then there is no need to fear an audit.
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  5. #5
    LdiJ is offline Senior Member
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    Quote Originally Posted by fburke View Post
    I agree but he's afraid of IRS filings because of the amount and them sizing his money doing an investagations tax audits..ect..
    The IRS won't seize his money unless they do an actual audit and prove that he owes them money. If he kept good accounting records for his business that should not be a problem. Even after an audit he would have time to remove his money from the bank before the IRS would get to the point of seizing it. How much money are we talking about?
  6. #6
    Ivory Ghost is offline Junior Member
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    The only thing the bank files in the case of a large cash deposit is a CTR (Cash Transaction Report) and then only if the amount is $10,000.01 or above. The Fed gets so many of them that it is highly unlikely that a single CTR filed on a person will generate an investigation. Actually it would look more suspicious if he made multiple deposits of under $10,000. This could cause the bank to file a SAR (Suspicious Activity Report) which would have a better chance of the Fed noticing.
  7. #7
    tranquility is offline Senior Member
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    Attempts to circumvent the law by doing multiple smaller, but related, transactions could be considered a crime.
  8. #8
    justalayman is offline Senior Member
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    Quote Originally Posted by Ivory Ghost View Post
    The only thing the bank files in the case of a large cash deposit is a CTR (Cash Transaction Report) and then only if the amount is $10,000.01 or above. The Fed gets so many of them that it is highly unlikely that a single CTR filed on a person will generate an investigation. Actually it would look more suspicious if he made multiple deposits of under $10,000. This could cause the bank to file a SAR (Suspicious Activity Report) which would have a better chance of the Fed noticing.

    Not completely accurate. The $10k is based on a days transactions, not a single event.


    A Currency Transaction Report ("CTR") must be filed for every deposit, withdrawal, exchange of currency or other payment or transfer by, through, or to a financial institution that involves a transaction or transactions in currency of more than $10,000 when a financial institution knows that the transaction(s) are by or on behalf of any person during one business day. See 31 CFR 103.22. For purposes of the CTR requirement, a “transaction in currency” means a transaction involving the physical transfer of cash from one person to another. See 31 CFR 103.11(ii). Thus, if a financial institution cashes a check with a face value of over $10,000 by providing the customer with $9,000 in cash and the remainder in monetary instruments (because, for example, a customer would like to pay bills with money orders), the financial institution would not be required to file a CTR, because the physical transfer of currency to the customer was under $10,000.


    One also must use caution when depositing amounts under the limit to trigger the CTR. Structuring the deposits of the funds to cause a CTR to not be filed is also illegal. 31 U.S.C.§ 5324
    Antigone* likes this.

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