When A CD Matures And You Deposit It Into Another Bank Or Credit Union Does It Have To Be Reported If Over $10,000.?

paoli2 | Mar 16, 2021 | 2,641 posts since 2011

I was just reading some info on another blog about having to report large amounts of cash deposited to financial institutions. When one has their CDs mature and they put the funds in a different institution, does that fall into the "reporting" category? Also who has to do the reporting? I always thought it was just new money which had to be reported but if we put it into a different institution doesn't that become new money for their bank or cu? In all these years no one at the new bank told me I had to sign or file some type of report when I opened new account with them. Maybe it is the institution which has to do the reporting. Does anyone know how this works?

Also, in our city, any time we try to cash a check (even from IRS) which is just $6.00 they have to see our ID. For $6.00??? What is going on in our country? It was a "refund" check. Yes, I, too, get those bigggg refund check. I have a professional doing my taxes now and the way I want my taxes done, I usually don't get refunds.

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Answers

Kaight | Mar 16, 2021 | 1,192 posts since 2011

That sort of reporting applies to cash transactions. So if you have a large CD mature, withdraw funds in the form of cash money, then redeposit that cash elsewhere . . . sure there might be some reporting involved. I say "might" because I never have done anything of that sort personally.

Certainly if you instead simply move the funds via check or wire or ACH, then there is no special reporting.

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Sherlock | Mar 16, 2021 | 48 posts since 2020

https://money.usnews.com/banking/articles/if-you-deposit-a-lot-of-cash-does-your-bank-report-it-to-the-government explains the answer to your question. The law is an effort to curb money laundering and other illegal activities. The deposit rule does not cover most checks, it does include reporting other forms of money, such as foreign currency, cashier's checks or money orders.

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glenrob | Mar 16, 2021 | 1 posts since 2020

i have moved money over 10k many times....if anyone reported it, it would have to be the bank...no one has ever mentioned anything to me one way or the other

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CuriousDave | Mar 16, 2021 | 233 posts since 2018

The rules for reporting cash transactions >$10K don't apply to CDs because they are registered by the FIs, who have all the details needed to identify the owners, to report all their CD transactions and to report their CD income to the IRS. We recall that the main purposes of these rules are (1) to trace back and/or track ownership of cash that originated from money laundering activities and (2) to identify income omitted from income tax returns.

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me1004 | Mar 19, 2021 | 1,379 posts since 2010

A CD is not a transaction, it is an account. It is moving the money to open the CD, or for whatever you do after the move, that is the transaction.

The reporting is so the policing agency, I believe the Secret Service, can see and consider whether there is any criminal activity, something they cannot know if it is not reported; the financial institution is not a police agency.

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me1004 | Mar 17, 2021 | 1,379 posts since 2010

When you are doing the transactions with financial institutions, they have to report the transaction or transfer of $10,000 or more, not you. They also are required to look for patterns that might be suspicious of you trying to avoid that reporting, such as writing multiple checks for a little less than $10,000 tot he same place or person - just ask former New York governor and attorney general Eliot Spitzer, that’s how he got caught.

RE cash, even if you take $10,000 of cash into a bank, they bank has to report that.

There are various other reporting requirements for different situations, at different money levels. but as for strictly bank matters, the bank is the one who has to report.

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Choice | Mar 17, 2021 | 937 posts since 2020

Wire transfers from foreign banks have been reported in the past...Suspicious Activity Reports are issued by receiving entity...any amount! Guess where the stimulus checks were posted? To that same account receiving overseas funds...when that account has no other banking activity except as a conduit for those funds. Talk to your banker and see if they even know what a SAR is

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