Today I deposited a substantial cheque into my bank account (£40,000). The teller said that because of the amount she had to ask where I got it and what it was for. I told her, but if I’d been inclined to tell her to mind her own business would I still have been able to deposit? If yes, would I have needed another process? What if I’d used the automatic deposit machine, then ignored any attempts to contact me?
That is not the bank asking, it is the government. With the ostensible excuse of fighting terrorism, money laundering and tax avoidance governments have been requiring more and more disclosures. This is happening world wide in great part under pressure from the USA. Transactions over a certain amount have to be reported to the government. I have had to fill in a questionaire a few times and sign it. If you have an account at the bank and they know you then maybe the lady was just filling it in for you or recording the information in the computer. In any case the information goes to the government and the bank could not care less.
As to what might happen if you refuse to answer. Well, they have your money. Do you want it?
You say ‘ask’ so I take it this was verbal, you didn’t fill in a form? Sign anything? She didn’t tell you that you were making a formal legal declaration or anything like that?
If not then I guess you could probably just say whatever you like without any serious issues.
I’m aware that banks have to report large transactions, maybe this information makes the reporting easier (or it means you don’t get called by the police).
This seems to me like the airlines’ question of “did you pack these bags yourself?” - anyone attempting some nefarious activity is hardly going to say “the latest consignment just arrived from Colombia and this was to sweeten the deal”, are they? Unless further checks are made, for example you say it was sale of a house and then they call the estate agent - but I can’t see that happening.
If you had told them ‘none of your damn business’ they would have refused the deposit, and possibly reported it to the police or other agency as possible money laundering.
When I opened a private bank a/c recently you have to answer the written question, ‘what is the source of your wealth?’
My ATM won’t accept deposits of over $5,000.
In the past, I’ve accidentally entered the wrong amount on a deposit, and they’ve corrected it, so you could try to get around it that way. I don’t think I’d take a chance entering £4,000 instead of £40,000 though.
I deposited just over £20,000 about 18 months ago, nobody asked me where it came from or what it was for, they just took it.
If they’d asked I would have told them it was an insurance payout