Kind of off topic - multiple bank accounts

[Scott (Mich)]

I have read here that a few of you have multiple bank accounts so you can be sure to get your supply of coins.

Well my wife had asked me about having multiple accounts as she wants to open a few. What she is doing is saving any spare money that she can but she divides it up. She wants to have one account for vacation funds, one for "mad" money that she can spend, one for possible future investments, and some others that I cannot remember then name of. Even if it is only a few dollars at a time she would rather have it in a bank then at home. She needs seven account she tells me, but she is worried what the government or IRS would say. I told her it should not be a problem and the only problem she may have is that the bank may require a minimum balance to start out.

All of you that have a few accounts - have you had any troubles with the government or anyone else from having multiple accounts? I know it should be only the account holders business as to how many accounts you have, but with the way the government seems to be heading in regards to privacy I wonder myself if it sends a red flag up to some agency.

Thanks,

Scott (Mich)

 

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[TxTim]

It should be no problem for you.
Most good financial advisors recommend multiple accounts in different banks. FDIC insures $100K per account.

 

[RON (PA)]

No problems from me. I have had multiple accounts in multiple banks for years. The only thing that I know of that causes flags to go up is the deposit of $5,000.00 or more at one time. Other than that you should have no trouble at all. Hope it helps.

 

[Silver_Fox]

Red Flags - multiple bank accounts

MONEY LAUNDERING RED FLAGS
DEPOSIT ACCOUNTS
This document lists various transactions and activities that may indicate potential money
laundering. While not all-inclusive, the list does reflect ways that launderers have been
known to operate. Transactions or activities listed here may not necessarily be indicative
of money laundering if they are consistent with a customer’s legitimate business. Also,
many of the “red flags” involve more than one type of transaction.
1. Minimal, vague or fictitious information provided. An individual provides minimal,
vague or fictitious information that the bank cannot readily verify.
2. Lack of references or identification. An individual attempts to open an account
without references or identification, gives sketchy information, or refuses to provide
the information needed by the bank.
3. Non-local address. The individual does not have a local residential or business
address, and there is no apparent legitimate reason for opening an account with the
bank.
4. Customers with multiple accounts. A customer maintains multiple accounts at a
bank or at different banks for no apparent legitimate reason. The accounts may be in
the same names or in different names with different signature authorities. Interaccount
transfers are evidence of common control.
5. Frequent deposits or withdrawals with no apparent business source. The customer
frequently deposits or withdraws large amounts of currency with no apparent business
source, or the business is of a type not known to generate substantial amounts of
currency.
6. Multiple accounts with numerous deposits under $10,000. An individual or group
opens a number of accounts under one or more names, and makes numerous cash
deposits just under 10,000, or deposits containing bank checks or travelers checks.
7. Numerous deposits under $10,000 in a short period of time. A customer makes
numerous deposits under $10,000 in an account in short periods of time, thereby
avoiding the requirement to file a Currency Transaction Report. This includes deposits
made at an automatic teller machine.
8. Accounts with a high volume of activity and low balances. Accounts with a high
volume of activity, which carry low balances or are frequently overdrawn, may be
indicative of money laundering or check kiting.
9. Large deposits and balances. A customer makes large deposits and maintains large
balances with little or no apparent justification.
10. Deposits and immediate requests for wire transfers or cash shipments. A customer
makes numerous deposits in an account and almost immediately requests wire transfers
or a cash shipment from that account to another account, possibly in another country.
These transactions are not consistent with the customer’s legitimate business needs.
Normally, only a token amount remains in the original account.
11. Numerous deposits of small incoming wires or monetary instruments, followed by
a large outgoing wire. Numerous small incoming wires and/or multiple monetary
instruments are deposited into an account. The customer then requests a large outgoing
wire to another institution or country.
12. Accounts used as a temporary repository for funds. The customer appears to use an
account as a temporary repository for funds that ultimately will be transferred out of
the bank, sometimes to foreign-based accounts. There is little account activity.
13. Funds deposited into several accounts, transferred to another account, and then
transferred outside of the U.S.. This involves the deposit of funds into several
accounts, which are then combined into one account, and ultimately transferred outside
the U.S. This activity is usually not consistent with the known legitimate business of
the customer.
14. Disbursement of certificates of deposit by multiple bank checks. A customer may
request disbursement of the proceeds of a certificate of deposit or other investments in
multiple bank checks, each under $10,000. The customer can then negotiate these
checks elsewhere for currency. He/she avoids the currency transaction reporting
requirements and severs the paper trail.
15. Early redemption of certificates of deposits. A customer may request early
redemption of certificates of deposit or other investments within a relatively short
period of time from the purchase date of the certificate of deposit or investment. The
customer may be willing to lose interest and incur penalties as a result of the early
redemption.
16. Sudden, unexplained increase in account activity or balance. There may be a
sudden, unexplained increase in account activity, both from cash and from non-cash
items. An account may be opened with a nominal balance that subsequently increases
rapidly and significantly.
17. Limited use of services. Frequent large cash deposits are made by a corporate
customer, who maintains high balances but does not use the bank’s other services.
18. Inconsistent deposit and withdrawal activity. Retail businesses may deposit
numerous checks, but there will rarely be withdrawals for daily operations.
19. Strapped currency. Frequent deposits of large amounts of currency, wrapped in
currency straps that have been stamped by other banks.
20. Client, trust and Escrow accounts. Substantial cash deposits by a professional
customer into client accounts, or in-house company accounts, such as trust and escrow
accounts.
21. Large amount of food stamps. Unusually large deposits of food stamps, which may
not be consistent with the customer’s legitimate business.

 

[Silver_Fox]

No problems from me. I have had multiple accounts in multiple banks for years. The only thing that I know of that causes flags to go up is the deposit of $5,000.00 or more at one time. Other than that you should have no trouble at all. Hope it helps.

That would be $10,000 or more. Or lot of small deposit / withdraws (possible money laundering). See my other reply to this topic, Red Flags - multiple bank accounts.

Currency transaction report
From Wikipedia, the free encyclopedia
(Redirected from Currency Transaction Report)
Jump to: navigation, search
A currency transaction report (CTR) is a report that U.S. financial institutions are required to file for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000. Used in this context, currency means the coin and/or paper money of any country that is designated as legal tender by the country of issuance. Currency also includes U.S. silver certificates, U.S. notes, Federal Reserve notes and official foreign bank notes.


[edit] History
When the first version of the CTR was introduced, the only way a suspicious transaction less than $10,000 was reported to the government was if a bank teller called law enforcement. This was primarily due to the financial industry's concern about the right to financial privacy. On October 26, 1986, with the passage of the Money Laundering Control Act, the right to financial privacy was no longer an issue. As part of the Act, Congress had stated that a financial institution could not be held liable for releasing suspicious transactional information to law enforcement. As a result, the next version of the CTR had a suspicious transaction check box at the top. This was in effect until April 1996 when the Suspicious Activity Report (SAR) was introduced.


[edit] Procedure
When a transaction involving more than $10,000 in cash is processed, most banks have a system that automatically creates a CTR electronically. Tax and other information about the customer is usually pre-filled by the bank software. CTRs since 1996 include an optional checkbox at the top if the bank employee believes the transaction to be suspicious or fraudulent. Unlike the Suspicious Activity Report (SAR), a customer is always informed about the need to file a CTR before the transaction is completed. However, a customer is not directly told about the $10,000 threshold unless they initiate the inquiry. A customer may decline to continue the transaction upon being informed about the CTR, but this would increase the likelihood of a bank employee filing a SAR. Once a customer presents or asks to withdraw more than $10,000 in currency, the decision to continue the transaction must continue as originally requested and may not be reduced to avoid the filing of a CTR. For instance, if a customer reneges on their initial request to deposit or withdraw more than $10,000 in cash, and instead requests the same transaction for $9,999, the bank employee should deny such a request and continue the transaction as originally requested by filing a CTR. This sort of attempt is known as structuring, and is punishable by federal law against both the customer and the bank employee. Informed individuals who structure their transactions at an amount near, but not over $10,000 could have their accounts closely monitored by tellers and bank staff to see if a pattern emerges that could warrant the filing of a SAR.

 

[killerwine]

I have multiple accounts with the minimum in them to avoid monthly charges...When I dump I use the coin machines and run $700. I do this so I only fill up the machine once and no one gets upset at the bank. I can get rid of the four boxes I get on Tuesdays and Thursdays and only visit the same branches once every 2 weeks...I don't deposit the money but get it back in cash....

 

[Scott (Mich)]

Thanks for the information everyone

 

[cmhoose]

Well my wife had asked me about having multiple accounts as she wants to open a few.

Scott (Mich)

Sure your wife.
We are always trying to blame our addictions on others!

Hoose

 

[Silver_Fox]

Well my wife had asked me about having multiple accounts as she wants to open a few.

Scott (Mich)

Sure your wife.
We are always trying to blame our addictions on others!

Hoose

It's called DENIAL...............LOL

 

[ringding]

Even if you don't have multiple accounts, our government admits that it spies on americans.

 

[cyberdan]

I think I have 5-6 CRH bank accounts with about $4500 spread out among them. I am constantly moving money around. Deposit here and there then ATM withdrawals here and there. I have recycled that money this year till it has equalled about $72500 in cash. I keep meticulous spreadsheet books and all receipts if I ever get audited. It is just a hobby, but just in case I can show money in & money out for every week.