Withdrawing large sums into American bank accounts

[InWithTheBest]

Sorry if this has been talked about before but I suck at using the search. Im 21 and have never had any significant income before online poker. Ive been on a great run the past few months and don't like leaving more than 20k on a poker site. Therefore I opened a checking account and have withdrawn my poker funds directly into it for the past two months.

I intend to pay taxes on every penny ive made this year so this post is not about hiding money from IRS.

What im wondering:
1) With online poker being illegal do I have to worry about my account being seized?
2) The last 3 Mondays I've deposited slightly less than 10k via neteller. Is that something that could raise suspicions?
3) Would depositing more than 10k in a week matter as far as the 2nd question.
4) Can a bank ask me where these sudden large transfers of money are coming from (considering before i maintained less than a 1k balance with the bank for over 6 years).

Sorry if these questions are stupid, but considering the amount of money thats at stake for me, I've been worried a lot about what could happen.

Thanks!

[MiltonFriedman]

There is a banking rule requiring the Banks in the US to report "suspicious" transactions, but the activity which is suspect is money laundering, with cash, not wire transfers.

"1) With online poker being illegal do I have to worry about my account being seized?'

Online poker is NOT illegal under Federal law. That is why there is a pending bill in the Senate, to MAKE it illegal.

"2) The last 3 Mondays I've deposited slightly less than 10k via neteller. Is that something that could raise suspicions?"

The "suspicion" you are referring to is generally related to suspected money laundering (which is illegal), not online gambling (which is not). Moreover, it arises from CASH transactions, not wire transfers or EFT transfers. That having been said, do not go "just under $10,000" on a consistent basis, that pattern raises unwarranted, unnecessary inquiries.

"3) Would depositing more than 10k in a week matter as far as the 2nd question.'

It is very common to make wire transfers over $10K, it should not raise a problem because it is not CASH .... (Remember, you ARE going to pay your income taxes on your income.)

"4) Can a bank ask me where these sudden large transfers of money are coming from (considering before i maintained less than a 1k balance with the bank for over 6 years).'

Sure, they can ask. If they do, tell them they are transfers from Neteller. Make them ask again if they want further details. If so, tell them it is income you have earned overseas, and get another bank.

[Percula]

[ QUOTE ]
2) The last 3 Mondays I've deposited slightly less than 10k via neteller. Is that something that could raise suspicions?

[/ QUOTE ]

Yes, this is a problem. This is called structuring and will get you into more trouble than anything else you have mentioned here. Do not be surprised to get a call from someone with a badge in future. Answer honestly and do not mention that you where trying to avoid the $10K reporting threshold.

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3) Would depositing more than 10k in a week matter as far as the 2nd question.

[/ QUOTE ]

If you intend to deposit more then do it. If you have a transaction >=$10K then they have to file a report but it is not big deal, poker players do it everyday and lots of business people do too.

[ QUOTE ]
4) Can a bank ask me where these sudden large transfers of money are coming from (considering before i maintained less than a 1k balance with the bank for over 6 years).

[/ QUOTE ]

Sure they can ask, answer them. Its not a big deal. The "law" that makes internet poker against the law, is very grey and has yet to be tested at the highest level of the courts. If they make any threats, tell thanks but no thanks and that you will be closing your account now and going to the competition. ING is your friend (hint, hint).

[MiltonFriedman]

"Do not be surprised to get a call from someone with a badge in future"

In the absence of criminal intent and actual laundering, there is no crime here.... You can make deposits for $9,999 every hour and NOT violate any law. You will raise suspicion, but you are not guilty of anything nor broken any "law" or obligation.

The $10K reporting threshold is the Bank's obligation, not the customers' obligation.

I agree that a pattern may prompt a bank call or a closed out account, but the caller will not have a "badge", nor will the OP have broken any law or "obligation" whatever that means.

[Zele]

[ QUOTE ]
"Do not be surprised to get a call from someone with a badge in future"

In the absence of criminal intent and actual laundering, there is no crime here....

[/ QUOTE ]

Structuring is a crime if the intent is to avoid the reporting threshold. No additional criminal intent is neccessary.

[Percula]

[ QUOTE ]
[ QUOTE ]
"Do not be surprised to get a call from someone with a badge in future"

In the absence of criminal intent and actual laundering, there is no crime here....

[/ QUOTE ]

Structuring is a crime if the intent is to avoid the reporting threshold. No additional criminal intent is neccessary.

[/ QUOTE ]

And is watched for and enforced much more so than people seem to think. This is a primary tool to stop laundering.

From my own personal experience... I was working a IT contract as 1099 and received monthly checks that were always $9yxx where y was nearly always 7, 8 or 9. After the thrid month of these hand deposits (direct deposit was not an option) I got a call from a federal agent. He was very polite, but made it VERY clear that if I did not cooperate with his investigation that he could "force" the issue and that I could be facing federal felony criminal charges. Once I proved that the income was from 1099 contract work and that I was not trying to avoid reporting requirements for >=$10K transactions, he dropped the matter and life was good again. If I was smart, I would have deposited the GF's check with mine and been over $10K per deposit and never had to talk the guy.

[MiltonFriedman]

"I got a call from a federal agent.....Once I proved that the income was from 1099 contract work and that I was not trying to avoid reporting requirements for >=$10K transactions, he dropped the matter and life was good again.'

Really ? How did you do all that over the phone ?

"Hi, I'm a federal agent .... What ? You say your deposits are legit ? .... Oh, okay then".

[Percula]

[ QUOTE ]
"I got a call from a federal agent.....Once I proved that the income was from 1099 contract work and that I was not trying to avoid reporting requirements for >=$10K transactions, he dropped the matter and life was good again.'

Really ? How did you do all that over the phone ?

"Hi, I'm a federal agent .... What ? You say your deposits are legit ? .... Oh, okay then".

[/ QUOTE ]

No, you say... "Yes agent (whatever his name was) I will be glad to meet you at your office tomorrow at 1pm to talk about this matter. And yes I can bring my records to prove that those deposits are from my work." Then you show up at his office and prove it, then he says "Thanks for your cooperation in this matter. There should be no further issues with this." And walk the office and get on with your life until some moron on a Internet BBS decides he has to be a prick about you sharing your knowledge with someone who has a need to know...

[MiltonFriedman]

Need to know "what" ? ... Some unnamed federal agency supoosedly will called you up, because you deposited three checks from your employer ? You're not really providing the OP with any useful information. You are just telling some story.

How about some meaningful details, such as what agency did it, what was the supposed law broken, what did they require for proof, et cetera.

Sorry, but if I was going to ask semi-serious questions, they would have been more like:

(The Bank did not retain copies of the checks you deposited, but ratted your deposits out anyway ? Next time ask him to look at his existing file and save yourself a trip to his "office". Wouldn't your payor's name be on the checks ?)

(How did you happen to have a 1099 available after only 3 deposits ?)

You're being kind of thin-skinned. I did not mean to upset the rest of your life.

[goodgrief]

Based on my experience dealing with large cash deposits and withdrawals, Zele and Percule are the real deal. MiltonFriedman's information isn't correct. It relies on logic and common sense, rather than what the law really says and how it is applied.

[ QUOTE ]
There is a banking rule requiring the Banks in the US to report "suspicious" transactions, but the activity which is suspect is money laundering, with cash, not wire transfers

[/ QUOTE ]

This simply isn't correct based on my experiences. The reporting activities for wire transfers were even more stringent in the late 1990s than for good old fashioned Ben Franklins. I can't imagine that it's any different in the post-911 era.

When you make repeated payments, or sometimes even just one wire transfer, for a "suspicious" amount, the bank will file a Suspicious Activity Report instead of a Currency Transaction Report. So a report still went out on you for the 3 transactions you did just under $10,000. It just looks worse, like you were trying to hide something. Don't do that. Withdraw the money you need. If you won $30,000, withdraw the $30,000 at one time unless there is a valid reason to leave huge sums of money sitting in your online poker account.

[ QUOTE ]
In the absence of criminal intent and actual laundering, there is no crime here.... You can make deposits for $9,999 every hour and NOT violate any law. You will raise suspicion, but you are not guilty of anything nor broken any "law" or obligation

[/ QUOTE ]

This has not been true since 1986, when structuring was made a felony federal offense.

By the way, congratulations on your success. It's awesome that you are doing so well. You may want to think about opening a KEOGH or IRA to put aside some small portion of your winnings.