Rachel in Miami, Florida said: Hi everyone. I'm doing research for a business class and my topic involves banking and regulations in banks. My question is at what amount of withdrawal are you required to ask the customer what they intend to use it for? And do they have to fill out any forms? Please and thank you. This information would help me greatly.
Anything over $10,000 and you and the customer have to fill out a CTR (Currency Transaction Report). If you think you are slick and try and withdraw $2,000 in five different amounts, you go on a Suspcious Items log, which you don't know about. This is actually done by computer now and even tellers don't always know about it.
One reason why US banks have not gone totally online is that they act as the de-factor agents of the US Treasury. All bank personnel must continually take classes on reporting requirements. For more info read up on The Bank Secrecy Act of 1970.
Stock Brokerage firms are online yet are barred from settling any account in cash. Its called money laundering. You cannot even buy a new car and pay cash without giving your social security number.
The US government does not like cash transactions as it is anonymous.
Some people say that in 25 years, cash will be outlawed. They will use RFID chips instead and that will track everything you buy. Everything.
- former bank teller