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Quote:That is called "structuring" and can result in your account being seized by the IRS:

 

http://www.nytimes.com/2014/10/26/us/law....html?_r=0

 

Banks are not permitted to advise customers that their deposit habits may be illegal or educate them about structuring unless they ask, in which case they are given a federal pamphlet, Ms. Van Steenwyk said. “We’re not allowed to tell them anything,” she said.

 

Sounds shady. What if you are a landlord who gets paid in cash and are depositing a large amount of cash on a monthly basis? You would think as long as you are reporting the income, it wouldn't matter.

YOUR MONEY ISN'T REALLY YOURS, Part 2

 

Here's where it gets nasty.  Under "Dodd-Frank 2010" at-risk banks will no longer get a bailout from the government.  Instead, they will get a "bail-in" from depositors.  Instead of covering your losses if your bank fails, the FDIC is now tasked with taking your deposits.  Under Dodd-Frank, Title II, Sec. 209 (b):

 

if claims are made against a firm, they will be paid in this order:

1. administrative costs
   
2. the government
   
3. wages, salaries, or commissions of employees
   
4. contributions to employee benefit plans
   
5. any other general or senior liability of the company
   
6. any junior obligation
   
7. salaries of executives and directors of the company; and
   
8. obligations to shareholders, members, general partners, and other equity holders (that's you
   ).
   

The liquidation during resolution is done at the discretion of the receiver, the FDIC, on the basis of salvaging what is, in its view, most important for financial stability. Under Title II, Sec. 9 E, it is stated that the FDIC, “shall, to the greatest extent practicable, conduct its operations in a manner that–..(iii) mitigates the potential for serious adverse effects to the financial system.”

I've learned my lesson with banks a long time ago.. They all suck in their special little ways. Your job is to find one that sucks the less for you.


Viva la Vystar..

Quote:Sounds shady. What if you are a landlord who gets paid in cash and are depositing a large amount of cash on a monthly basis? You would think as long as you are reporting the income, it wouldn't matter.

 

Read the NY Times article.  One business had 3 accounts closed because of the paperwork burden of its cash deposits over $10,000.  Their accountant advised them to keep deposits under $10,000 and their full account of $447,000 was seized for structuring. 

Quote:I think all of those examples of problems with the banking system aren't really banking system related but due to Patriot Act aren't they? i could be wrong but I thought the 10k thing was due to that. 

 

Yes you are wrong, see my response to StroudCrouwd1 below.

 

Quote:Sounds shady. What if you are a landlord who gets paid in cash and are depositing a large amount of cash on a monthly basis? You would think as long as you are reporting the income, it wouldn't matter.

 

Actually, it's called Civil Forfeiture.  I've posted topics in the past about this.  There have been cases where business were ruined or harmed because of that.

Quote:big banks work with drug cartels. check snopes. i think its true, but need snopes to confirm.

 

Cash is Cash, why not.  Don't ask don't tell.  El Chapo had $22 billion in cash -- what bank in Panama is going to turn that down.

 

Quote:Cash is Cash, why not.  Don't ask don't tell.  El Chapo had $22 billion in cash -- what bank in Panama is going to turn that down.

 

 

because the bank gets away with paying a relatively minor fine if caught.  me on the other hand gets 25 years in prison for growing marijuana in my back yard

There was a story about banks in Miami laundering drug money.  The drug cartels developed boxes for cash that were 1/4" smaller than the teller windows at the bank.  That way they could push through the maximum amount of cash per deposit. 

 

There was also a story about Wachovia caught laundering $800 Billion of drug money and having to pay an $800 million fine when they were caught - that is a 1/10 of 1% fine for getting caught.  Like for selling $100 worth of crack you would pay 10 cents in fines - but only if you were caught.  Uh, that's not much of a deterrent. 

exactly. the fines are a joke and an insult to anybody ever prosecuted for drug possession

 

but also, what are we going to do about it? nothing. nothing we can do. all we can do is bend over and let the system [BLEEP] us in the [BLEEP]

Quote:This is total bovine excrement. I've never had to fill out any forms or answer any questions when I've withdrawn large sums of money. Money in, money out. No questions asked.


So I would say that what you posted is complete horse hockey.


Seriously, do you really think our economic system could operate at all if banks made people fill out forms every time they wanted to deposit or withdraw $10,000? Seriously?

Yeah, I've seen the same thing.

 

I've deposited more than 10k at once 3 times this year.  I've also withdrawn more than 10k at once twice.  No one said a thing about it either time.

Quote:Yes you are wrong, see my response to StroudCrouwd1 below.

 

 

Actually, it's called Civil Forfeiture.  I've posted topics in the past about this.  There have been cases where business were ruined or harmed because of that.

 

I don't have time to read the entire wiki link but are you saying that if a business operates with cash only payments, deposits large amounts of cash, and accounts for every dime on their tax return, their bank account can still be seized without the the chance of getting it back after proving no wrong doing?

Quote:That is called "structuring" and can result in your account being seized by the IRS:

<a class="bbc_url" href='http://www.nytimes.com/2014/10/26/us/law-lets-irs-seize-accounts-on-suspicion-no-crime-required.html?_r=0'>http://www.nytimes.com/2014/10/26/us/law-lets-irs-seize-accounts-on-suspicion-no-crime-required.html?_r=0</a>

Banks are not permitted to advise customers that their deposit habits may be illegal or educate them about structuring unless they ask, in which case they are given a federal pamphlet, Ms. Van Steenwyk said. “We’re not allowed to tell them anything,” she said.

No sh#*


I have been well aware of that federal law since I first went to work at least 10 years before the patriot act. The bank manager merely asked me if I was aware- to which I replied, "Yes, thanks for your concern".


I don't make a habit of repeated large cash deposits. This was a short term anomaly, and if questioned I could easily provide proof of legality.


It's a non-concern.

Quote:Yeah, I've seen the same thing.

 

I've deposited more than 10k at once 3 times this year.  I've also withdrawn more than 10k at once twice.  No one said a thing about it either time.

 

Were these cash deposits and withdrawals?  If they are checks, it all stays in the banking system and is no problem.  They only care if you deposit or withdraw cash.  Cash undermines the system and banks hate it. 

Quote:Were these cash deposits and withdrawals?  If they are checks, it all stays in the banking system and is no problem.  They only care if you deposit or withdraw cash.  Cash undermines the system and banks hate it. 

 

A lot of perfectly legal businesses operate with only cash. What are you supposed to do exactly?

I've never had an issue.


Cash, check or otherwise.

Quote:because the bank gets away with paying a relatively minor fine if caught.  me on the other hand gets 25 years in prison for growing marijuana in my back yard

 

.... soooo true.

Quote:A lot of perfectly legal businesses operate with only cash. What are you supposed to do exactly?

 

That's why it's a problem.  That's why people are losing their life savings.

 

We are seeing the first rumblings of a War On Cash by the banks.  They do not like cash.  They can't create it with a few taps on a keyboard like they can create digital money.  When you get a house loan, the check you hand to the previous owner comes from nowhere.  The bank just made it up.  The money was invented when they decided you were willing to make payments.

 

If the bank had to come up with $250,000 cash for you to give to the previous homeowner, that would be a problem.  But if they hand you a check to give to the previous owner, the previous owner will have to deposit the check - in a bank - in the system.  The cost is zero for the banks.  The payments you make for 30 years are pure profit.  It wasn't their house or their money.

 

Money in the bank is not equivalent to cash in the hand.  For now, they interchange at 1:1, but they are not the same.  Put 50k cash in the bank and try to withdraw it and you will run into problems with both the deposit and the withdrawal. 

Quote:Or EricC85.

Burrying is a waste of time I can and freeze dry then store in a climate control pantry.

Quote:Agreed to what others said. I did get a strange line of questioning from a bank president after repeated $5,000 - $8,000 cash deposits. I realize it may look like avoiding the $10,000 cash rule. No forms were ever filled out tho

Yes they most likely were. They don't usually tell you that they are filling out a SAR.

Quote:I could be mistaken, but I believe paperwork is only involved if you deposit more than $10,000.00 at once.

That's where the SAR comes in. And it applies to deposits and withdrawals.