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Large and Shady Bank Transfers Are Reported

Posted By Jim On 08/17/2007 @ 9:57 am In Personal Finance | 25 Comments

Did you know that if you get a $9,999 transfer from your parents to help you out on a down payment, the bank won’t be required by the Bank Secrecy Act to report the deposit on a Currency Transaction Report (CTR); if they give you $10,000 then they are required to report it? The purpose behind these, and other reports mandated by the BSA, reports is to help the Feds find out if someone is laundering money.

Now, if there are a whole bunch of transfers for $5,000, the bank could always opt to report the transfers if they suspect something is fishy. This way they can report the deposits even if they don’t individually exceed $10,000 themselves.

The FinCEN Form 104 Currency Transaction Report (CTR) is the report that is filed when there is a transaction (deposit, withdrawal, currency conversion, etc) over $10,000 or over. The FinCEN Form 105 Report of International Transportation of Currency or Monetary Instruments (CMIR) is the report that is filed when someone transports or causes to be transported into or out of the United States.

Now, if the bank suspect something is up (i.e. a law is being broken), they’ll file a Treasury Department Form 90-22.47 and an OCC Form 8010-9, 8010-1 Suspicious Activity Report (SAR).

Whew!

So, what does this mean for the average Joe? Nothing really… it’s just a big of useful trivia.


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