Limitations on withdrawals? : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Being relatively new to this forum I would first like to thank all of you who offer such good information and links. It is of great help to us newcomers.

My question is fairly simple. I know that there comes a point when one has to fill out IRS forms and disclosure statements when taking out over 10K out of a financial institution. But how about taking 5K out this week, 3K next week and, say, another 4K the week after? Does the IRS 'keep track' to see if you've reached the 10K mark? Is the 10K 'rule' accumulative?

I would greatly appreciate any suggestions and links to previous threads that I may have missed.

Thank you again for this forum. There are obviously a lot of very bright and intelligent people gathered here and through your insights I am now.... getting it! You may have saved my life!


-- Carolyn Grace (, July 01, 1999


Taking out smaller amounts is called "struckturing" and it will be treated as "money laundering". You can go to jail for doing that. The best thing to do is if you have a substantial amount of money is to write checks to the coin shop and buy gold or silver.

-- freddie (, July 01, 1999.

Thank you Freddie! Will do! With the little time remaining I need to start moving things around quickly but I also need to make sure that I'm doing it correctly.


-- Carolyn Grace (, July 01, 1999.

I think that you will find the the amount being reported to the Feds has been lowered to 3 thousad dollars now...Fill out their reporting papers and go leagel. Tell the manager that you wish to with draw x amount of dollars from your account, and to please give you the reporting form, this way you stay leagel, get your money and can go home with peace of mind. BTW...I have good intel that says that on and around the 15th of Sept. this year. The banks will begin limting withdrawels from banking accounts (personal) to $ 100.00 per day...And No, I cannot divulge my sourses either. Take the information for what it is worth. Shakey

-- Shakey_in_a (Bunker@forty.feet), July 01, 1999.

An important question, Carolyn and as someone posted yesterday(I forget who), not to be taken lightly. I too have a question/ request for opinions. In my situation, self employed in the service industry,(construction) I keep a very small balance in my bank accounts, depositing as needed to cover checks for regular monthly bills. Otherwise, I usually cash pay checks at my clients banks and do my day to day buying with cash. My question is, assuming there is a bit of a run on the banks late this year, will there still be cash available for me in December? Generally it's less than $1000 at a time but still........ I'd love to here everyone's take on this, 1's to 10's , although the mild mannered shill from the FDIC yesterday need not respond.(he/she never had a real thought of its own anyway.) Thanks

-- Roger (, July 01, 1999.

Roger, I don't think you have anything to worry about in December, because you will not be working!

-- freddie (, July 01, 1999.


check out the banking and gold threads, also do a search on "structuring", "401k" and "withdrawl".

You'll find some excellent information.

Good luck,

-- Andy (, July 01, 1999.

Excuse me Shakey.....Is your statement about the Feds 'lowering' the threshold to $3000 really correct? I missed that one somewhere along the line (need to spend less time in the barn, I guess). ANYBODY is welcome to chime in on a reply, please!

-- Will continue (, July 01, 1999.

I spoke with managers at two different bank branches, about witdrawing cash and my concern over "structuring"......was assured by them both, that unless the amount was at least $10,000. there is no problem- no reporting is necessary.

-- Jo Ann (, July 01, 1999.


I believe that the three thousand figure was mentioned in connection with a cashier's check or money order on another forum. The rule was at least proposed, I don't know for sure that it has been implemented.

It does seem that the simplest course, for those who are able, is to simply cash one's check and deposit only what is needed for writing checks, taking the remainder in cash for the stash. IMHO, cash will be less valuable than goods and services if the delivery system grinds to a crawl. Those just beginning can stretch their money by going to their local grain elevator and getting 50# bags of rolled oats, wheat, corn, & barley for less that $10 per bag. Not our usual fare, but good enough for an emergency, makes us able to share something instead of being charity cases ourselves, and is relatively easy on the budget. ('Taint a balanced diet so include supplements.)


-- gene (, July 01, 1999.

Thanks gene. I almost spit my coffee at the monitor when I read that! (lol) The majority of our funds are not in the system, but we have been waiting for the arrival of a large sum to be deposited. Checks will be written to eliminate balance of debt and finalize preps. Three grand is chicken feed (literally)!

-- Will continue (, July 01, 1999.

An afterthought.....guess I shouldn't post so early in the morning....don't have l00% of my mind in gear.......the bank managers both assured me that unless you withdraw at least $10,000, AT ONE TIME (not over a period of time) there is no requirement for reporting. I still think, if you plan to do this, it would be a good idea talk to them, and explain what you are doing, so you won't be under undue suspicion. Furthermore, you can expect them to assure you that they expect no problems, and you will have the risks of possible burglary and you won't be earning any interest on said funds. But, it IS your money.

-- Jo Ann (, July 01, 1999.

I am a bank Compliance Officer.

This is the rule: If you withdrawal more than $10,000 in one business day, either in one lump sum or in multiple transactions at various locations of the same bank, a Currency Transaction Report is required to be filed by bank personnel. If you purchase official checks (money orders, cashier's checks, traveler's checks, etc) in amounts of $3,000 or more (or in multiple transactions that exceed $3,000)in cash, information about the purchase and purchaser will be recorded in the bank's Official Checks Log. The aforementioned log is not routinely submitted to any government entity, but is available for review by bank examiners, IRS, or any otherwise authorized official. Transactions under these reporting thresholds are not reported, unless considered "suspicious activity" on your part. Such activity is defined as activity considered outside the normal, expected activity for your account, based on your account's history. In other words, if you never withdraw more than $100 at a time and suddenly you begin withdrawing $5,000 a day, that could be considered suspicious and reportable.

Just wanted to clarify.

-- compliance officer (, July 01, 1999.

I'd like to concur with compliance officer. I have been in the position of withdrawing over $10K, and it is the bank's responsibility to fill out their paperwork -- not yours. The only thing that you have to be concerned with is to make sure that you do not put yourself in the position of seemingly attempting to withdraw amounts in a period of time that might suggest that you are trying to circumvent the bank's responsibility on this -- i.e., "structuring" so as to evade.

And note, too, that this applies only to withdrawals. If you cancel your direct deposit at your place of employment, and take your paycheck to the bank that it is written on (I am assuming that its local), and cash it each payday -- that is not structuring, because no withdrawal is involved.

-- Jack (, July 01, 1999.

Jack, I'd like to thank you in regards to the info regarding cashing checks instead of making withdrawals. And much thanks to 'compliance officer' for clarifying things. It is much appreciated!


-- Carolyn Grace (, July 01, 1999.

Dear Mr. Compliance Officer, sir,

You act as though what you just said was a perfectly normal, acceptable thing! Helloooooo! The money we are talking about here belongs to US! Not YOU. Not the IRS. Not the bank. How can you possibly say that "In other words, if you never withdraw more than $100 at a time and suddenly you begin withdrawing $5,000 a day, that could be considered suspicious and reportable."

How can it be "suspicious" whatever we choose to do with OUR OWN MONEY? Sorry if you don't like our savings/spending habits. Sorry you don't have a life. Sorry if you find this offensive, too. So sorry....

-- jumpoffjoe (, July 01, 1999.

No need to chew the guy's head off. The 'compliance officer' at the bank doesn't give a flying fingersnap what you do with your money. Or I with mine. He or she is mandated by Federal regulations to consider withdrawals of large amounts, or withdrawals in unusual patterns, as "suspicious." Bank officials are very reluctant to contravene Federal regulations.

-- Tom Carey (, July 01, 1999.

Tom, are you telling me a "bank compliance officer" works for a bank, and not for some beauratic governmental agency? That there are so many rules and regs that the bank had to hire a person just to make sure they "follow the rules?"

That's a scary concept, in and of itself. Regardless, I didn't "bite the guy's head off". This is only a written forum. I'm sure ComplianceMan can handle my criticism.

The point is, do you get the point of my letter? The point is I resent anyone thinking they need to scrutinize what I do with MY money, or you with yours. If ComplianceMan buys into the system that allows this attitude, I have no sympathy for him.

-- jumpoffjoe (, July 01, 1999.

I'm confused. Didn't the "Know Your Customer" law get defeated? Why are banks now required to report cash withdrawls over 10K? Does anyone else feel like we've crossed the line? Are we living in the USA or Nazi Germany or the old Russia? Why are we letting "them" get away with this? And why do I feel that I would be smart to erase that last line or forget the whole posting because I fear reprisal? Not from you all but from "them"! The land of the free??????? Just how brave are we all??????? NO MORE!!!!!!!!!

-- DianeR (, July 01, 1999.

REVOLUTION calling!!!!!!!!!!!!!!!

-- K. Miller (, July 01, 1999.

Banks have been required to report transactions of $10,000.00 and over for many years now. The only reason you didn't know about it is because most of you have had your head up it for most of your life. Only now that people think their own little world is in trouble, they think that things have suddenly changed. You wouldn't listen when others told you that the govt is slowly taking over your lives. You wouldn't listen when others told you that you must stand up and take charge of your life. What if y2k is only a bump in the road? Going to bury your head in the sand until the next scare dajuor?

-- robin hood (, July 02, 1999.

Naw, no revolution yet. Please excuse me, I have been feeling overwhelmed with all the not so pretty side of life and lost my temper.

-- DianeR (, July 02, 1999.

No s#%t! I may have sounded naove and I'm sure I don't know the half of it. I've known about reporting cash transactions for years, I just didn't realize it meant withdrawals too, thought it was something new.

I understand your anger and frustration. But give people a break. It's darn tough finding the time to delve into all aspects of life on this planet. We're all so busy just trying to survive in this high maintenance society we've created. It's nuts! I try to stay informed about what's going on. There are so many areas of life that need attention. There is so much information out there and trying to get the real picture is darn near impossible. Every aspect of our lives is in trouble at present and needs tremendous attention. We truly are at huge risk. I'm taking a Constitution course and believe me I am very aware of how far we are from living it. Our lost liberties have not been lost recently. It's been going on for decades. Am I angry and frustrated? To say the least!

-- DianeR (, July 02, 1999.

Just one more thing to clarify - yes the banking industry has so many Federal, state, IRS, Office of Foreign Assets Control, etc regulations, that my job is dedicated entirely to ensuring the daily compliance of our personnel with all of these regulations. Since 150+ employees could not possibly know all of the laws, it is my job to read, interpret, and disseminate the information to all affected. This includes audits of Fair Lending standards, interest calculations, and yes - suspicious transactions and Currency Transaction Reports. We don't like any of the activity reporting requirements - but the alternative is a possible fine of $10,000 per employee or non-filed report or up to 1% of the bank's capital as well as 10 years imprisonment for any employee helping a customer "structure" their activity to avoid reporting. Since I don't look good in stripes (prison bars that is) I take my job, and my bank's compliance, very seriously. They just don't pay me enough for the responsibility of keeping them out of jail!

-- Compliance Officer (, July 06, 1999.

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