exerda

Correct--I've had two banks claim cashier's checks would take several days to clear despite the fact they were cashier's checks. Apparently they were worried they were frauds of some sort.

Global_Hi_Flyer

http://www.occ.treas.gov/ftp/ADVISORY/2007-1.html

Deeg

Perhaps there are some state laws to which you are referring. But in the federal system, probable cause is required to seize and a preponderance is required to forfeit. There's no presumption of guilt, although the fact that a person cannot explain how they acquired a large amount of cash goes quite a long way towards establishing probable cause, IMHO.

exerda

The worst instance was a BoA cashier's check a friend sent me to cover his contribution toward Hokie Club dues + season tickets, for about $1500. I deposited it with BoA, and they held it for 2 days. I've had cashier's checks held longer, but that that one was drawn on one of their own accounts... sheesh.

I had another I used to pay off a credit card, drawn on my own account, and the bank put a "security freeze" on the funds for 5 days.

bocastephen

Some of us still desire the right to conduct personal financial transactions in private, and frankly what we do with our own money is nobody's business.

Until they outlaw cash and replace it with smart chip cards tied to your 'personal ID', there will always be people who want privacy, and always be people who equate privacy with 'criminal'.

Having to explain where my money came from to a bunch of airport rent-a-cops looking to make a quick score, is in my opinion, an assault on my liberty and privacy. I shouldn't have to explain to anyone where my money comes from. If a cop wants to take the opinion I am dealing drugs, then let them catch me in the act of dealing.

themicah

I have a family member who doesn't use ATMs (long story), so when he travels he often has a few thousand in cash on him (almost never over $10k). One time TSA happened to notice the wad in his carryon (I think they opened it to pull out some dangerous toothpaste or something), and they took him to the booth, counted out the money and filled out a report.

I've been told by more than one TSAer that the report was not because my family member was doing anything illegal, but because TSA policy is to make a written record when they find large amounts of cash in case the pax ever accuse them of stealing some during the search.

My family member was peeved at the invasion of privacy, but I still haven't gotten him to use ATMs.


Edited to add: Here's a previous post on the subject, where Bart helpfully explained the TSA poilcy on this:

http://flyertalk.com/forum/showpost....2&postcount=94

exerda

As there have been several well-publicized cases of both the LEOs and even the courts accepting as "probable cause" the flimsiest of pretenses, and it is then up to the owner to prove to the court beyond a reasonable doubt not only that the money was legitimately acquired but also that it was being used "legitimately," I respectfully disagree with that characterization of the feds being so hands-off.

LessO2

I find it very hard to believe that in today's hi-tech world, a world where I can take money out of an ATM in Sydney, Australia and my account will instantly reflect the amount of money withdrawn AND the "ATM fee," too.

I find it very hard to believe that in today's hi-tech world that verification of a cashier's check takes several days.

The bank holds onto the check so they can collect the interest for that time. That one check doesn't make a ton of money for them, but when you do it nationwide, well....that's how banks get the dough to get those fancy offices in New York.

Threatening to leave the bank has, in the past, gotten my funds deposited in whole without delay.

exerda

One of my college professors told our class about his brother, who sued his bank over the holds, claiming they were indeed illegally making interest off his deposits and using that and only that as a reason to take time to clear the check. He settled for several hundred K, IIRC. Whether the story was true or apocryphal I don't know, but it is certainly illustrative of the point.

What I also find hard to believe is that now banks will withdraw your funds immediately upon someone depositing your check, but they still can claim deposited funds won't be available for a day (or more, depending on the type of check, etc.)

jonesing

And unlike the CTR which has a set limit of $10k for automatic reporting, a SAR is more subjective: The bank can file one for ANY amount. It's up to induvidual banks' policies. I found out with one bank the reporting threshhold varies depending on the type of account and branch location: business account for a car wash--$8,000; personal VIP account--$8,000; personal account for Joe Blow--$5,000; student account--$3,000.

bocastephen

Bank of America was (maybe still is) known for abusing this, filing reports on customers for the most trivial of events without their knowledge, well below the legal thresholds - as well as turning over customer banking records in their entirety upon request from the Government without any attempt to protect the customer's interests or privacy. Besides their horrific customer service, Bank of America is a big for this.

Global_Hi_Flyer

The way they beat that now is to credit the funds as of date of deposit, but limit your access to the funds for a period of time. Thus (assuming you have an interest bearing account), you earn interest during the hold period.

djk7

Maybe the seller's main concern was keeping the transaction secret, vs. access to the funds.

GeneCMH

Thanks for all of the responses so far.

I am a little bit concerned now as the amount in question is well over 10k. The money is from an elderly relative who's been literally saving it in their matress and wants me to take it and keep for them (deposited in my accounts). I'm starting to think that a very long road trip may be in order here. Though there's risk there too.

themicah

Do you have an account with a bank that has a branch near the elderly relative? If so, just deposit it there before you fly home.