FlyerTalk Forums - View Single Post - Buying Money Orders at Walmart (2022-24)

Feb 4, 2022, 12:58 pm

#125

Lovelabs2

Join Date: Jul 2021

Posts: 238

Quote:

Originally Posted by jeffeverde

You like to cite the Bank Secrecy Act a lot. Have you ever actually read it? Most of your comments regarding it are incorrect. To clear up a couple of your regular misstatements -

"anything over $3k requires asking for ID info per Secrecy Act" -- In fact, the $3,000 trigger on the purchase of MO's specifically and explicitly applies to monetary instruments purchased with CASH. Quoting the BSA -

Treasury regulation 31 CFR 103.29 prohibits financial institutions from issuing or selling monetary instruments purchased with cash in amounts of $3,000 to $10,000, inclusive, unless it obtains and records certain identifying information on the purchaser and specific transaction information

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"Debit cards are cash" - Incorrect. The BSA regulations around cash are because cash transactions are not traceable. Debit card purchases involve an electronic transaction which can be traced back to an account and an account owner. Now VGC's, on the other hand, should be treated like cash, because while they do leave an electronic trail, they can be purchased with cash, so that trail may be a dead end.
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"Drug dealers don't by MO's with VGC's, they use cash" - In fact, VGC's are an ideal way to hide cash transactions because they can be purchased with cash, purchases made with them are not subject to the BSA restrictions on cash, and they can be used pretty much anywhere.

(and yes, I did work in banking for many years)

I think I didn’t make my comment clear enough……yes real bank DC can be traced to owner of account and yes I have read the BSA several times. That is why any store who wants to can require a real bank DC to purchase MO and bans VGC. If name not on DC then no MO. I was referring to VGC used as debit for MO. You agree that this is considered a “cash” transaction as do the stores issuing the MO…thus the $3k reporting info collected whether with real bank DC or a VGC. I’ve been told many times at various stores that even one MO cannot be bought with VGC as it violates the BSA. They are misinterpreting the Act regs. No amount of discussion can change their minds. I just laugh and move on.

The money launderers may buy VGC with cash and then buy a MO with it….but why would they do that? Just use the dirty cash to pay for MO and avoid a step..which I would bet is how they buy the MO. I agree that using cash for VGC is not traceable also. They launderers can certainly buy any amount of VGC with cash and then use them for purchases…..without any reporting requirement. I doubt very much that is their MO to launder the $$$. The BSA was enacted precisely because there were vast amounts of MO being bought with dirty drug CASH not VGC. It’s the MSers that use the VGC for MO predominantly.

Thx for your thoughtful response tho.