Can the banks ask....?

Good Karma

Hi

I went to make a lodgement the other day in cash and it wasn't that much a couple of hundred. The bank asked me what was the source of funds?? Are they allowed to ask this. I didn't answer them as I'm not answerable to them, revenue yes, bank no - but are they legally allowed to ask this question.

I remember lodging a cheque from a solicitior a year ago for a couple of thousand and they asked me where the money was coming from, the solicitors firm name was on the cheque - surely they don't expect you to stand their and explain your legal dealing to them?? What do you think.

Good Karma

Justintime

Yes, the bank can and indeed are expected to ask. It's all to do with anti money laundering rules,

Brady

So prob not a good idea to say its the proceeds from a crack/cocaine deal?

Justintime wrote: »

Yes, the bank can and indeed are expected to ask. It's all to do with anti money laundering rules,

Arnold Layne

I always use the Fast Lodgement Facility and have occasionally lodged a couple of hundred euro this way. How are they supposed to ask in this case? Or is this the reason you have to put you contact telephone number on the envelope and lodgement slip?

kenon

Arnold Layne wrote: »

I always use the Fast Lodgement Facility and have occasionally lodged a couple of hundred euro this way. How are they supposed to ask in this case? Or is this the reason you have to put you contact telephone number on the envelope and lodgement slip?

I was just thinking that. I always use the quick lodgement method so I've never been asked what the source of the money was.

I guess thats the trick to laundering cash...

smcgiff

To be asked while lodging a few hundred is way OTT - but said above there is anti money laundering legislation. I would of thought it a bit silly to ask the question when we're only talking a few hundred.

Next time they ask when you are lodging a few hundred tell them you're only now getting around to lodging your communion money!

Good Karma

what if you refuse to answer?? Or what if you just keep saying I won it - a good day at the races

twowheelsonly

As somebody mentioned, it's to do with money laundering.
AFAIK any sum over 10,000 means automatic notification to the authorities.
It's strange to be asking about a couple of hundred quid though unless you're making those lodgements regularly, in which case they usually will inform the authorities as well.
When you think about it it's actually quite unusual for any ordinary citizen to lodge money directly on a regular basis any more!!

seven-iron

Some brainless monkey behind the counter on a power trip most likely, thinking they know it all.

I would have said accept the money or I'll bring my €200 and the rest of my account next door.

smcgiff

seven-iron wrote: »

Some brainless monkey behind the counter on a power trip most likely, thinking they know it all.

I would have said accept the money or I'll bring my €200 and the rest of my account next door.

The pub next door? Oh - I see where you're going with this...

johnc2212

as one of the previous posters has said, its money laundering rules and they have no right to ask about sums below the threshold amount. if a pattern of lodgements were made over a period yes they could.

just-joe

Kinf of related but also very random - I always thought it would be quite funny to save up 20 euro notes (like one or two a week) for a long time, and then go and buy a 10k watch with the money! Would they just accept the cas, or what would happen?

Or say if you did it with two euro coins (probably not as much money though obviously), is it still legal tender when its a large sum?

Siogfinsceal

I would have thought they were only entitled to ask if you were over the threshold amount or were regularly lodging cash.

Just Joe as far as I know there is a limit on coins as to how many a retail company is obliged to accept. I used to wonder what that limit was when I worked in a shop years ago and some smart @ss kid would come in with a fiver in 5p coins!