A FAT Cheque

[lesnar]

Will banks question me if i deposit a cheque that is written to me from another person that's over $20,000 especially when I have an extremely low or $0 balance in my bank account. What will happen. Has anyone experience this before? Will they do an investigation to see if the money is coming from a legit source?

Please avoid any useless posts please. Thanks!

[gman]

Will banks question me if i deposit a cheque that is written to me from another person that's over $20,000 especially when I have an extremely low or $0 balance in my bank account. What will happen. Has anyone experience this before? Will they do an investigation to see if the money is coming from a legit source?

Please avoid any useless posts please. Thanks!

Why would they question you? Your cheque will be held until it is clear anyway.

[7ma?]

They will prolly put a hold on it and they might also call the institution in which the cheque was issued to see if the funds are available....
They might ask you where the money is from but you can just tell them anything.....

[VirusSyn]

doubt it would be a problem, someone bought my dads car for 24k, and he paid with cheque, and my dad cashed it no problems. Some extra security measures were taken but nothing too seroius or a hassle at all

[gedwards]

No it will not be a problem. The cheque will definitely be put on hold until it clears the bank. They won't call the other institution but will just allow it to go through the clearing process.

If a cheque clears, a bank will not investigate the source of funds to see how the person got the money. At most they might report a suspiscious transaction to authorities who will investigate but there is nothing unusual about depositing a $20,000 cheque.

The fact is even though your balance is normally very low the bank doesn't know if this is your main bank account. You could have other accounts at other banks that normally have $100,000 + in them.

[Blunt]

http://www.smh.com.au/ffximage/2004/08/06/trevor_wideweb__430x266.jpg

You might have to goto a teller, it probably won't fit in an ATM. Champagne is optional.

[cwb27]

For any single Deposit a person makes equal to, or greater than $10,000 the person must specify the source of the money and how they acquired it.

I don't know if this is the same for all situations (i.e Cash vs Cheque), but it'd be best to contact your financial institution and ask them for a forsure answer.

[gman]

For any single Deposit a person makes equal to, or greater than $10,000 the person must specify the source of the money and how they acquired it.

I don't know if this is the same for all situations (i.e Cash vs Cheque), but it'd be best to contact your financial institution and ask them for a forsure answer.

That rule is for against money laundry. That is money without trace. A cheque by default leaves a trace. Even if they do ask question, there is nothing to hide anyway. Or, there is?

[HoTiCE_]

Yeah, Relax,

Just don't tell them you got it from selling organs & meth on the streets and y ou'll be fine :)


As long as its legit, no worries, this is still a democracy you know.

[xwar]

it'll be fine.

[Tik]

dont worry, my dad i once put $35K (cash) USD in td canada, they did ask where the money came from and we replied it was a return of a loan we gave to someone

[Badger]

I don't see a problem with it either.

If I don't like the interest rate in my current bank account, I'm taking every single penny out of my account and move it to a better place. If they hassle you too much, go bring your money elsewhere.

[elmokiddo]

Yeah, usually they will ask where it came from and ask for some extra pieces of ID depending on the bank. 20k isn't that much... so its not like a bank will go through the hassle of "investigating"

[AlexElder]

what questions are you worrying them asking you?

They WILL put it on hold, unless they have a reason not to, but there are very few reasons why they would NOT put a hold on a 20k chq.

after the hold is done though the chq is technically yours, but if for some reason it comes back later on down the road, the bank will try everything in their power to get back the money, especially if there is some kind of fraud connected with it.

[aequitas]

ill tell you exactly what happens....

since you dont have a history of depositing large cheques, they will first question where you got the funds from, by law you have to declare it. then they will deposit the cheque and put atleast a 5 day hold on it (possibly longer, depends on your banks policy). Once the cheques gets encoded (as in the money is debited from the account its drawn on) a copy of the cheque will be faxed to the home branch of the account and they will verify the signature on the cheque to that of what they have on file for that account number. If it all matches, then the cheque will clear and the hold lifted... if it doesnt then the funds will be debited from your account (b4 the hold is lifted) and returned NSF.

[StarvinStudent]

Will a hold be placed on a Bank Draft?

[gman]

ill tell you exactly what happens....

since you dont have a history of depositing large cheques, they will first question where you got the funds from, by law you have to declare it. then they will deposit the cheque and put atleast a 5 day hold on it (possibly longer, depends on your banks policy). Once the cheques gets encoded (as in the money is debited from the account its drawn on) a copy of the cheque will be faxed to the home branch of the account and they will verify the signature on the cheque to that of what they have on file for that account number. If it all matches, then the cheque will clear and the hold lifted... if it doesnt then the funds will be debited from your account (b4 the hold is lifted) and returned NSF.

By law, there is nothing to be declared unless it is a large cash deposit or a large international electronic fund transfer. Where you got the fund from?? Read the cheque. That tells you where the fund comes from. :rolleyes:

http://www.fintrac.gc.ca/publications/FINS/2006-04-07_e.asp

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, if you are a reporting entity, you have to submit a large cash transaction report (LCTR) to FINTRAC, when you receive an amount of $10,000 or more in cash1, from a client, in the course of a single transaction. Also, if you are a financial entity2, a money services business or a foreign exchange dealer, you have to submit an electronic funds transfer report (EFTR) to FINTRAC if you send or receive international electronic funds transfer (EFT) of $10,000 or more, made at the request of a client. An LCTR must be submitted within 15 calendar days of the transaction(s), while an EFTR must be submitted within 5 business days from the time the EFT is sent or received.

[Drew_W]

Will a hold be placed on a Bank Draft?

Yes or no depending on the amount. All a draft is is a corporate cheque. If you get a large draft, get the business card of the manager/supervisor and give it with the draft so the depositing bank can call to verify so the hold is only a few hours instead of a week.