Do banks have to report large deposits of cash?

[imd123]

I recently sold my car for �6000 cash which I paid into my bank account. When I bought a new car from a dealer they said I could legally only pay �500 in cash the rest would have to be cheque, debit card or banker's draft. They also said that large cash deposits into a bank account had to be reported by the bank to the inland revenue in case of money laundering. Anyone know if this is true? Thanks to anyopne who replies.

[Postdog]

I think there is some truth in that, but in any case, I think you'd be daft to carry that much cash on you when they are safer ways of paying.

[imd123]

Thanks postdog. I wasn't intending to pay cash he just told me this. He also said they had turned a fews sales away because buyers only wanted to pay in cash. Obviously they wanted to offload some cash undetected!

[WoWo]

True to form as a used car sales man he is talking b*ll*cks. There is nothing to stop you paying in cash, he might not want to do that but there is nothing illegal about it.

In terms of the banks, they would question large sums of money but sums like �6000 would pass well under the radar as far as I know.

I have certainly deposited that amount of money in the bank without a problem (after a bike sale).

[lady_p_gold]

A used car salesperson turning sales away ..... now there's a funny story. I think he is talking complete nonsense.

[noxlumos]

I have garages and there is no law to say you can't be paid in cash.It6's unusual and should you end up inadvertantly laundering money for someone then there could be trouble, but nothing set in stone that makes it illegal.

[jollyholly]

6k plus,IR informed.

[Oneeyedvic]

If you are paying cash of more than (ironically) Euro15,000 (circa �10,000) then there are money laundering regulations to be considered.

If there are 'one off' transactions like nox's bike, there are no real issues - though the cashier may ask the question: "where did this money come from".

Companies such as car dealers have a far more difficult time though - as you can imagine lots of drug dealers (and others who want to money launder) going in to pay cash.

It would be fairly sensible for a garage to refuse to take large amounts in cash - at the company I used to work for (a finance company) we refused to take someone's cash when they wanted to buy a repossessed limo - they had to transfer the money into our account.

Under money laundering regulations, there is not only an onus on the person taking the cash (ie the salesperson) to report any thing he feels is suspicious, but the salesperson can in fact get fined / go to prison if there are subsequent issues (rather comparative to serving an underage person in a pub - bar persons fault - not just the pubs)

[maviscoull]

my hubby sells cars and due to money laundering his company will only accept so much in cash ( i think �1000 ) i think this is by law ! and the rest has to be cheque, draft, or card payment. even visiting the garage on a few occasions with additional cash payments is not allowed !!

[EverClean]

The obligation to report on the grounds of money laundering is if there is a suspicion attached to a deposit or withdrawal of cash. If the bank cashier is not suspicious then they do nothing. They may ask you questions regarding where you got the money or what you intend to do with it but you are well within your rights to tell tham that it's none of their business. It's up to them to report it if they think it's suspicious. No laws state maximum amounts of cash transactions as far as I'm aware.
As has already been posted, places such as car dealers make up their own rules/policies to protect themselves if there were any comebacks due to the money laundering regulations.

[Loosehead]

Never heard so much b0ll0cks in my life, a dealer turning away cash?? Never in a million years, they love cash absolutely love it. "Legally only pay �500 ......"! horse **** . Have you been talking to the JOker? There are money laundering laws but that just means the banks may ask for an explanation of the source, for 6k they probably wouldn't bother. They do not have to be reported to the revenue.

[Cobra.]

They will report by law any deposits above �10/�15k or so.

Doesnt mean you will get the Fraud squad breething down your neck tho.

[stevie21]

There (to my knowledge) isn't a set figure above which all deposits must be reported. If it's normal for you to deposit 10K in cash now and again then nothing would be reported.

If your account already looked a bit shifty and then you paid in �6K then it'd be reported. It does the teller no harm whatsoever to report innocent transactions but it's stressed to them that they could be disciplined or in trouble with the law if they suspect something and don't report it.

[chazza]

When I worked in the bank we were encouraged to report anything suspicious, ie a person coming in and regularly depositing large amounts of money into a personal account, but really it was up to us to use our discretion

[lauratee]

It sounds about right to me I work for a firm of Solicitors and to comply with Money Laundering Regulations we can't accept more than �500 in any 28-day period. Anyone who breaches this "could" technically go to prison!!! And yes anyone depositing large sums of money should be reported!! Looks like you have found a honest car dealer........Poor Old Arfur Daley would be turning in his grave!!!!!!

[imd123]

Thanks for all your answers.