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Bank asks for Lodgement origin

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  • 25-01-2017 11:03am
    #1
    rgossip30
    Registered Users Posts: 2,463 ✭✭✭


    What happens when a bank asks you to show the origin of a logement . Do they report it to revenue ?
    Tagged:


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    #2
    daheff
    Registered Users Posts: 5,863 ✭✭✭daheff


    how much did you lodge?


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    #3
    rgossip30
    Registered Users Posts: 2,463 ✭✭✭rgossip30


    daheff wrote: »
    how much did you lodge?

    I think the question can be answered without disclosing on a public forum .


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    #4
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    rgossip30 wrote: »
    I think the question can be answered without disclosing on a public forum .

    Not really. If it was €10 no one would bat an eyelid. If it was €10k they are obliged to ask you where you got it. It's a money laundering thing. I'm not sure what the official figure is. €5k I think.


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    #5
    _Brian
    Registered Users Posts: 18,564 ✭✭✭✭_Brian


    And if ya say ya saved it up ??


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    #6
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    _Brian wrote: »
    And if ya say ya saved it up ??

    You could say that I suppose but if they tell the revenue, can you prove it.

    If you buy a car from a main dealer for more than €5k in cash (notes) they are obliged or supposed to tell the revenue. Whether they all do or not, who knows. This is just as an example. I really don't know what the banks rules are but you can be sure it's well covered.


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    #7
    daheff
    Registered Users Posts: 5,863 ✭✭✭daheff


    rgossip30 wrote: »
    I think the question can be answered without disclosing on a public forum .

    Sorry i havent worded this very eloquently. As emeldc mentions the level of funds lodged may trigger Anti Money Laundering controls to kick in. I believe once you get over 12,500 EUR or the bank believes the relationship will be above that level they are obliged to start asking questions.

    So long as you can show that the money came from legal sources, there is little chance of the bank reporting the funds to revenue. However, if you cant /wont, there is a chance that the bank will freeze the account and report it to revenue.


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    #8
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    There's no "official" amount, it's any amount that's out of character with the regular activity of the account.

    Take my own account, the only income into that every month is my husband's salary and the children's allowance, so if I were to rock up to a branch with 5k in cash, they'd ask me where I got it. You're not obliged to answer, but they're obliged to ask. Then send up a report to a department in the bank, it's looked at further in there, and then if they feel it's necessary they'll forward it to revenue etc.

    Or if you were on the dole and then you arrived in with 2k in cash, they should also be questioning that.

    OP it's no reflection on you, the cashier has to do it.


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    #9
    BlueLass
    Closed Accounts Posts: 148 ✭✭BlueLass


    daheff wrote: »
    However, if you cant /wont, there is a chance that the bank will freeze the account and report it to revenue.

    Can a bank freeze a bank account without a court order??


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    #10
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    BlueLass wrote: »
    Can a bank freeze a bank account without a court order??

    Yes, usually while they are carrying out their investigation.


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    #11
    rgossip30
    Registered Users Posts: 2,463 ✭✭✭rgossip30


    What about transfers to children's accounts and the source is legitimate .


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    #12
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    They'll still want to find out the source of the funds. If the source is legit then that's fine, but they're obliged to find out.


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    #13
    jimmycrackcorm
    Registered Users Posts: 14,339 ✭✭✭✭jimmycrackcorm


    I once went into my bank to lodge my redundancy cheque. They asked for the source of the lodgement. From the same people who had been transferring my salary for years into the same account, I replied.


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    #14
    rgossip30
    Registered Users Posts: 2,463 ✭✭✭rgossip30


    Toots wrote: »
    They'll still want to find out the source of the funds. If the source is legit then that's fine, but they're obliged to find out.

    The amount is over 3k so would that not trigger a gift tax ,children do require money for education ?


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    #15
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    rgossip30 wrote: »
    The amount is over 3k so would that not trigger a gift tax ,children do require money for education ?

    Not if it's from the parent but there are limits. If it was from a drug dealer it might get taxed :)


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    #16
    rgossip30
    Registered Users Posts: 2,463 ✭✭✭rgossip30


    emeldc wrote: »
    Not if it's from the parent but there are limits. If it was from a drug dealer it might get taxed :)

    Some day I will be tempted to say that take out my false tooth like Fran and say to the cashier in my best dub accent , its from drugs.


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    #17
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    rgossip30 wrote: »
    Some day I will be tempted to say that take out my false tooth like Fran and say to the cashier in my best dub accent , its from drugs.

    The gift tax thing is covered here.
    http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

    But the bank don't really care if you're paying tax on the money, they simply want to know where you got it and that it's legit.


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    #18
    CINCLANTFLT
    Closed Accounts Posts: 781 ✭✭✭CINCLANTFLT


    amcalester wrote: »
    Yes, usually while they are carrying out their investigation.

    Nope... that may fall under "tipping off" and the bank official could go to jail for that!

    And with a new AML directive coming down the line, this is only going to become more strict!


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    #19
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    CINCLANTFLT wrote: »
    Nope... that may fall under "tipping off" and the bank official could go to jail for that!

    And with a new AML directive coming down the line, this is only going to become more strict!

    Only going by my experience, as it's a few years since I worked in banking but I would regularly see accounts frozen while the source of funds or suspicious transactions were verified.

    In these cases the customer was never told why the account was frozen, just that they were unable to transact on it.

    I did often think that this was akin to tipping off and some customers definitely put 2+2 together, but I was always assured by our MLRO that it wasn't.


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    #20
    Blackjack
    Registered Users Posts: 3,612 ✭✭✭Blackjack


    CINCLANTFLT wrote: »
    Nope... that may fall under "tipping off" and the bank official could go to jail for that!

    And with a new AML directive coming down the line, this is only going to become more strict!

    The bank can put a freeze on a bank account for any reason, if they are carrying out an investigation or not. The investigation may not relate to Money laundering (could be anything really).

    You're right though about tipping off but they can certainly place a freeze or hold on accounts or on amounts of money in an account if they wish.

    They don't have to tell you they've frozen the account either.


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    #21
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    Blackjack wrote: »
    The bank can put a freeze on a bank account for any reason, if they are carrying out an investigation or not. The investigation may not relate to Money laundering (could be anything really).

    You're right though about tipping off but they can certainly place a freeze or hold on accounts or on amounts of money in an account if they wish.

    They don't have to tell you they've frozen the account either.

    Yeah, we wouldnt actively tell customers the account had been frozen. They would only know if they tried to use it.


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    #22
    CINCLANTFLT
    Closed Accounts Posts: 781 ✭✭✭CINCLANTFLT


    amcalester wrote: »
    Yeah, we wouldnt actively tell customers the account had been frozen. They would only know if they tried to use it.

    Welcome to the fun world of Financial Services compliance! People think it's black and white... it ain't!


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    #23
    rsl1976
    Registered Users Posts: 830 ✭✭✭rsl1976


    When I was a cashier we asked if it was 5k or above. If customer didn't want to tell me I'd just note it on the lodgement docket.


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