There are various people who believe in the phenomenon that they are free to withdraw any amount of money from their own bank as it is their wealth. But this is not entirely true there are some terms and conditions which you need to be followed while withdrawing money from your bank so that you do not get reported. Bank Secrecy Act, a law from 1970 anti-money laundering law says that banks are needed to report those kinds of transactions that falls under this act. This transaction information is used by the US Department of the Treasury’s financial crimes enforcement network (FinCEN) for searching the people who are enclosed with financial terrorism, money laundering or other financial crimes.
FinCEN Reporting Requirements
There are some amounts which are considered as milestones where any transaction falling under $2000 is considered to be as the safe transaction and is private. Next, if your transaction is more than $2000 bit falls under $10000 then it will be all depending on the bank employee whether he found the activity suspicious or not, if everything seems normal then there is no need of reporting such transaction especially when the person has a normal account history.
Now the question that worries people is, How much cash they can withdraw from the bank without getting a red flag? If you are withdrawing the amount of $10000 or more in one day then definitely you will raise the red flag and the bank is ordered to report such transactions immediately. Apart from this if you withdraw the half amount infractions like $5000 in the morning and the next $5000 in the evening at the same day then also banks have complete right to report such transactions. Banks are needed to report all transactions raised to $1000 or more and the failure in it can lead to the federal investigation.
As per the guidelines of FinCEN, it is important for the banks to keep an eye over the structure signs. You might be thing what does this Structuring means. Actually structuring is nothing, it is just the method of using various small transactions so that person can avoid himself from the normal guidelines of reporting mostly in case the transactions are done from separate or various branches. One is also needed to be aware of the structuring if anyone is making a transaction of various large withdrawals at intervals of few days, weeks or months.
Structuring is known as the key component of money laundering and plays an essential role. If you are doing structuring then one thing you should know that it is nowhere illegal, the problem arises only one the bank customer does not speak up truth to the federal agent related to the reason of withdrawing money.
Bank Reporting of Cash Withdrawals
The banks can file two types of case reports related to the withdrawal of cash. The first of filing any case is related to the suspicious activities which are related to the transaction of $2000 or more. In this report, the bank executive has to tell what kind of suspicion he found or perceive. There is total 30 days time for the banks for filing any paperwork and it is also advised to the banks that they are not allowed to tell the customers related to the filed case. Another kind of report is known as the currency transaction report which is submitted for the withdrawal of $10000 and for filing this case banks are having a total time duration of 15 days.
The banks are in need of following few exceptional guidelines related to the reporting. If there are large cash transaction with other banks or any government organization then there is no need for reporting by banks. If the person is a businessman or running any business then also in such situation there is no need of reporting such transactions as they require regular large withdrawals and deposits which is a common part of any business.