According to the Bank Secrecy Act, banks must report all money transactions that any person makes that exceed $10,000.. This report includes the person’s name, account number, Social Security number, and identification number.
Although this may seem worrying, the reality is that it is standard procedure and is no cause for alarm if the deposit you make is legitimate.
This means that your account will not be frozen nor will the police visit you if you deposit $10 thousand dollars or more.
The reason banks do this procedure is to prevent money laundering, counterfeit deposits, and other similar financial crimes.
And, when banks report deposits of $10 thousand dollars or more, the government can more easily track these monetary transactions.
However, there are many people who don’t like banks reporting to the government every time they make large deposits, so they try to avoid creating these records by making smaller cash deposits totaling $10,000 or more.
They usually do this in a short period of time, usually within a period of a few days or weeks.
This activity is known as ‘structuring’ and is considered illegal..
In the same sense, if you deposit $8 thousand dollars to avoid reaching the limit of $10 thousand dollars, it is also a form of structuring that is considered illegal.
In other words: if the bank suspects that you are trying to avoid reaching the $10,000 limit, it could inform the authorities, who could sanction you.
To do this, banks will send authorities a Suspicious Activity Report.
If this occurs, authorities will further investigate your financial activity to determine if you are involved in fraud, money laundering or terrorist financing.
Besides, the bank is not required to send a Suspicious Activity Report to the authorities.
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