Can A Bank Ask Where You Got The Money?

Can A Bank Ask Where You Got The Money? The short answer is Yes.

Banks must ask and document from where any cash above $10,000 comes. This process is done through IRS Form 8300 as part of the Anti Money Laundering (AML) and Know Your Customer (KYC) that the law requires.

Anti Money Laundering

Money Laundering is where you place illegal or “dirty money” into the financial system. It will be used in several small transactions to disguise and misdirect the ill-gotten funds so they can be withdrawn from legitimate accounts with actual banking documentation.

Know Your Customer

There is a legal requirement for financial institutions and other financial service companies to put policies in place to verify the identity of their customers and assess the risks associated with them in an attempt to prevent identity theft, money laundering, and other financial crimes.

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