Banks reporting cash deposits >$10,000 - any effect on drug traffic?

Banks have to report cash deposits of $10,000 and higher to Federal authorities. I believe the main reason being this would make illegal money easily recognizable and alert authorties that the money probably is drug-related. Drug-dealers therefore break cash deposits into $9,000 batches and open up many accounts. Their “associates” then go to various banks and deposit these smaller amounts. (called ‘smurfing’).

My question is, has this law done anything to hurt the illegal drug trade?

Increased the number of drug dealer transactions. :smiley:

$10,000 is a small enough sum to crimp even somedrug users. The hassle of multiple $9,000 transactions has got to be worse for the dealers; especially when that sort of behavior is supposed to be redflagged too.

Under the new Homeland Security Act, banks now routinely monitor all cash transactions, whether they are at the 10K level or lower. (They don’t care about 1K, but they sure do about 5K).

IMHO, the drug connection is unimportant right now. Superceded by terrorist.

If you went to your bank tomorrow and withdrew 5K in cash, they may or may not have you fill out a form. Depends on the bank. Then, if you went to another branch of your bank and withdrew 2K in cash, and then the next day went to another branch, and withdrew 4K in cash, your bank would probably report you for taking out 10K in cash. They’re doing cumulative things now, and computers catch this kind of thing.