OT Bankers question about money laundering...

[s1uggo72]

I saw this on a movie last night, and was curious if this is true. Why? IDK I have no intention of doing it, all of my money is traceable, that is, I dont have any cash.
the money launderer goes to the bank and takes out a line of credit, say $1 million. Now he writes a check to another bank where he has an account and deposits the $1 million. completely legal. Now he takes $100k cash to the bank with the $1million line of credit and pays down the line of credit. The premise in the movie is, no 1088? form needs filled out as it is not a deposit, it is a repayment of the loan. No notice to Treasury goes out, no notice to the DEA goes out etc....
is this true? could you launder the money this way? I am now on a watch list? TIA

 

[GrimReaper]

I saw this on a movie last night, and was curious if this is true. Why? IDK I have no intention of doing it, all of my money is traceable, that is, I dont have any cash.
the money launderer goes to the bank and takes out a line of credit, say $1 million. Now he writes a check to another bank where he has an account and deposits the $1 million. completely legal. Now he takes $100k cash to the bank with the $1million line of credit and pays down the line of credit. The premise in the movie is, no 1088? form needs filled out as it is not a deposit, it is a repayment of the loan. No notice to Treasury goes out, no notice to the DEA goes out etc....
is this true? could you launder the money this way? I am now on a watch list? TIA

No. First, a 1088 is a tax form used to report barter transactions.

The form in question is a FinCen 104 that includes all movements greater than $10k, including checks (Box 32).

Question: how did the actor, in the first place, get the $100k in the "other bank" without triggering reporting to the Treasury?

 

[LionJim]

We interviewed and hired a money manager a couple of years ago. She mentioned that she regularly has to tell people that, no, they can’t hire her and expect her to deal with cash.

 

[Sunsox]

For the most part all transactions greater than $10,000 in cash must be reported. And under the IRS definition of transaction is specifically listed "a loan is made or repaid".

 

[s1uggo72]

No. First, a 1088 is a tax form used to report barter transactions.

The form in question is a FinCen 104 that includes all movements greater than $10k, including checks (Box 32).

Question: how did the actor, in the first place, get the $100k in the "other bank" without triggering reporting to the Treasury?

when they open a line of credit, they issue a check for the amount of the line of credit, so that money is laundered. the $100k cash came from drugs or whatever, and they just put that against the $1million line of credit, and because it was not a deposit (its a repayment of a loan) no forms are triggered.

 

[s1uggo72]

For the most part all transactions greater than $10,000 in cash must be reported. And under the IRS definition of transaction is specifically listed "a loan is made or repaid".

as you say for the most part, the movie indicated it would not have to be reported as it was not a deposit but a repayment of a loan. Because it was not reported no agencies would be notified (DEA etc)

 

[PSUFTG2]

"I saw this on a movie last night"
You could have stopped there.

 

[s1uggo72]

here is the scene.....

 

[Sunsox]

as you say for the most part, the movie indicated it would not have to be reported as it was not a deposit but a repayment of a loan. Because it was not reported no agencies would be notified (DEA etc)

But you missed my second sentence where the IRS defines transactions not just as deposits, but also loan repayments, among other things. So, the premise of it not being reported just because it is a loan repayment would be false.

 

[LionJim]

"I saw this on a movie last night"
You could have stopped there.

Early In the movie “Hit Man,” the protagonist states, roughly, “It’s because of movies that people think they can find a hit man to off their mother-in-law. A popular misconception.”

 

[TheBigUglies]

Just watch Ozark

 

[GrimReaper]

when they open a line of credit, they issue a check for the amount of the line of credit, so that money is laundered. the $100k cash came from drugs or whatever, and they just put that against the $1million line of credit, and because it was not a deposit (its a repayment of a loan) no forms are triggered.

You're changing the details, but no matter. The bank into which the proceeds from the line are deposited will report it on a FinCen 104, whether the mode is cashier's check, which are seldom issued these days, or electronic/wire transfer, which is the most common. The receiving bank has no idea of the funds are sourced. The person originating that transaction has just run up a red flag for the Treasury to watch.

 

[GrimReaper]

as you say for the most part, the movie indicated it would not have to be reported as it was not a deposit but a repayment of a loan. Because it was not reported no agencies would be notified (DEA etc)

The $1mm deposit from the line of credit will trigger a report. And then the Treasury will wonder where the money to repay the loan is coming from

 

[MtNittany]

Cash is King.

 

[s1uggo72]

The $1mm deposit from the line of credit will trigger a report. And then the Treasury will wonder where the money to repay the loan is coming from

IDK you deposit $1 million into a brokerage account, check or wire, I do not believe that triggers any kind of report. Treasury wont care, as it proceeds from a loan.

 

[psuro]

I launder my money whenver I forget to take the loose change out of my pockets before starting the wash.

 

[s1uggo72]

I launder my money whenver I forget to take the loose change out of my pockets before starting the wash.

lose change?? who carries lose change?

 

[psuro]

lose change?? who carries lose change

Loose people.

 

[ApexLion]

 

[GrimReaper]

IDK you deposit $1 million into a brokerage account, check or wire, I do not believe that triggers any kind of report. Treasury wont care, as it proceeds from a loan.

Sure it does, you just don't know it. The receiving/reporting bank has no idea what the proceeds are from. The Treasury may or may not check and may or may not follow up? First questions they ask is what is the purpose of the loon and does the borrower have apparent means to repay it (which is what the bank should be asking in the first place, but I guess the scriptwriters overlooked that).

 

[manatree]

I launder my money whenver I forget to take the loose change out of my pockets before starting the wash.

lose change?? who carries lose change?

Gotta keep that Aldi quarter looking fresh.