I withdrew $ 4,000 and my bank wants to know why

[DrDeth]

@Jegpeg

Asda, a UK supermarket, they have not only their own gift cards but also gift cards for things like Amazon, books (from any book retailer), clothing stores and cinema (movie theatre) chains. (I just find it convenient to buy them with my groceries)

Amounts are not that high typically I get about 10 cards for £25 (~$30) each.

Then, that is why-

@Jegpeg

but I have been told the maximum is 5 cards, it doesn’t seem to depend on the value at all.

The sign doesnt make that differentiation, but the law is in place to prevent money laundering (fro fraud often)- and in that case, they want to buy the most expensive cards possible, not $30.

So the cashier went for the spirit of the law, and

@Jegpeg

Every year they just tell me this and put it through as 2 or 3 separate transactions.

No one tries to launder money in those small amounts.

[msmith537]

@LSLGuy

Nonsense.

It’s anti-fraud. And protecting you, not the bank.

It’s also protecting the bank (Anti-Money Laundering / Know Your Customer laws.)

[Princhester]

@RitterSport

BTW, I’m sure it’s bank policy to ask, but it’s it’s not clear to me that they wouldn’t give you the money if you just said, “thank you for asking, I’ll take the money now.”

I suspect there would come a point where after warning you about scams they would hand the cash over - but by that point they have CYA’d sufficiently. Which is their goal.

[Lord_Feldon]

@RitterSport

BTW, I’m sure it’s bank policy to ask, but it’s it’s not clear to me that they wouldn’t give you the money if you just said, “thank you for asking, I’ll take the money now.”

They’d have to at some point, but the risk for an obstinate customer is that the bank decides to just opt out of any future problems by closing the account.

[HMS_Irruncible]

@Dorjan

There’s no duty without the ability to enforce it - banks have a duty to ensure the transaction/withdrawal is being done by the actual owner of the account - if they suspect a fraudulent transaction is being made by someone other than you, they can block it. If you walk into a branch and provide identification proving you as the account owner, there’s no duty beyond that point. So what if you DO want to withdraw $4k to send to some shady person.

Know Your Customer laws do in fact specify a duty of CDD (customer due diligence) as far as verifying customer activity and blocking risky transactions. If they asked what you’re doing with the $4K and you stated that you were giving it to a guy on the corner in a trench coat you don’t really know, then yes, they can decide it’s too risky. Some notable elements of CDD are:

• Assess and understand the purpose and intended nature of the business relationship or occasional transactions
• Assess the nature of the customers’ business
• Conduct on-going monitoring of the relationship and transactions, and ensure that they are consistent with the knowledge of the customer and of the source of funds

Though banks are privately owned, they are a public service. And they’re more than just places to dump your money when you’re not using it, this also carries a regulatory burden of risk assessment and management, because these are important to the health and stability of a fractional reserve banking system that runs on trust and vigilance.

If that’s not agreeable to you, then you can use a different kind of service like a safe deposit box, which carries none of the stability guarantees of a bank apart from physical security, and the bank officers are literally required to look the other way when you’re accessing the contents. Or just keep it under your mattress.

@RitterSport

BTW, I’m sure it’s bank policy to ask, but it’s it’s not clear to me that they wouldn’t give you the money if you just said, “thank you for asking, I’ll take the money now.”

They don’t have to conduct any transaction that they feel carries too much risk to the institution or customer, or is likely illegal. At a minimum they will note the transaction to document the behavioral pattern for future reference (ah yes, we know you pay your mechanic in cash, very good sir), or they may report certain transactions to regulatory authorities.

Banks are a service that exist for the public good, they are bound by regulations that ensure they do so.

[DesertDog]

@Cartooniverse

No doubt this is a requirement related to drug trafficking or other nefarious pursuits.

1 – The trigger for reporting cash that possibly is being used for drug dealing, money laundering, or other nefarious purposes is $10-grand, not four.

2 – They tell FinCEN, not you.

The concern was doubtless fear of elder-scam.