Source of funds question

[NotATether]

Have any of you guys been asked by your bank about the source of funds in a recent transaction where you sell your bitcoins (or other crypto) and receive a wire transfer? Especially since the other trader is basically a stranger to you for the bank's purposes?

If yes, then do you know of any thresholds that this will happen?

I'm just wondering since it seems to me that if you can't produce a SoF then they might freeze/close your account or something.

I don't have any problems myself in particular, but like I said, I'm just wondering about this possibility..

[_act_]

Countries may have different rules about this. What I noticed in the banks in my country and from many other places is that you have the maximum amount of money that you can use wire transfer for.

On the bank that I am using, you can use wire transfer for transaction not more than $10000 at ones. No requirement for that. I remember when Kucoin supported wire transfer for my country, it is not also more than $10000.

[dkbit98]

Have any of you guys been asked by your bank about the source of funds in a recent transaction where you sell your bitcoins (or other crypto) and receive a wire transfer? Especially since the other trader is basically a stranger to you for the bank's purposes?

No, but you should not risk testing this with to many wire transfer transactions.
Limits and thresholds are different for each country and bank, and I don't think we can find clear information about that anywhere.
If there is a choice you should always exchange bitcoin for cash by using p2p transactions and decentralized exchanges.
Another alternative is to use crypto cards, but that also have different type of risks.

[LoyceV]

This is one of the reasons why I prefer established exchanges over P2P with random strangers. Receiving money from unknown accounts abroad triggers much more red flags.

[AB de Royse777]

If yes, then do you know of any thresholds that this will happen?

I am sure the thresholds will depends on the law of the country. It's better to ask someone who lives in the same country. You can also ask you bank too. I once needed to know such thresholds and my bank did not hesitate to give the information.

[DaveF]

There are dozens of things that may trip the 'look more deeply into this' thing from a bank.

Most of them use a bunch of different algorithms.

Part of it is also based on your previous use of the account. If you only rarely got a wire transfer and then all of a sudden you are getting in a couple of dozen a month.
Is going to be looked at differently then an account that has always gotten in 3 or 4 or week going to 5 a week.

Some banks really don't seem to care. Chase who I use never questioned anything. They just have bencome unberbable to deal with as a bank.
https://bitcointalk.org/index.php?topic=5502270

https://bitcointalk.org/index.php?topic=5502270.msg64307249#msg64307249

-Dave

[serchan]

The easiest how to provide source of funds is it provide document of loan. Does not matter that you spent that loan for something else.
Just take quick loan for 40K USD that you can repay anytime and you can provide these documents.
Nobody can see that you have already payed back the loan

[LoyceV]

Does not matter that you spent that loan for something else.

Lying to your bank is one of the fastest ways to get your account frozen, and get yourself in a lot of trouble.

[JollyGood]

I know the thread was created some months ago but it is a relevant issue. I think it would be safe to assume any limitation or threshold would depend on numerous circumstances that vary from country to country. It stands to reason that eventually any/all banks would ask about a transaction or two during the lifetime of the account. It certainly puts a dent in to those not doing anything illegal or wrong and seeking privacy.

I don't have any problems myself in particular, but like I said, I'm just wondering about this possibility..

[LoyceV]

It certainly puts a dent in to those not doing anything illegal or wrong and seeking privacy.

You can't have privacy while using a bank. I'm sure the bank doesn't care (as banks are generally evil), but they care about the fines they'll get. So they ask you anything they can think of, so they're on the safe side.

[JollyGood]

I agree, customers cannot get privacy at a bank. Who knows where banks are sharing their data with.

I was referring to a bank asking a customer where they got the initial funds to purchase/trade any crypto that was exchanged for fiat and that payment was sent to the bank. If that were to happen, the customer could be forced to disclose all the transactions in the chain including the use of any coinjoin or mixer and if that were to happen all the steps the customer took to ensure anonymity will be lost.

It certainly puts a dent in to those not doing anything illegal or wrong and seeking privacy.

You can't have privacy while using a bank. I'm sure the bank doesn't care (as banks are generally evil), but they care about the fines they'll get. So they ask you anything they can think of, so they're on the safe side.

[bias]

It certainly puts a dent in to those not doing anything illegal or wrong and seeking privacy.

You can't have privacy while using a bank. I'm sure the bank doesn't care (as banks are generally evil), but they care about the fines they'll get. So they ask you anything they can think of, so they're on the safe side.

Just because they ask, doesn't mean that you have to answer.
I mean that the law (in any country at least as far as I know, correct me if I'm wrong) does not allow them to ask whatever they want and of course, it gives us the right not to answer questions that do not relate to a specific issue.

Have any of you guys been asked by your bank about the source of funds in a recent transaction where you sell your bitcoins (or other crypto) and receive a wire transfer? Especially since the other trader is basically a stranger to you for the bank's purposes?

Basically, no bank can know without investigating a bit further, where the money comes from and I don't mean from which account or sender but in what way it was acquired. Either you sold Bitcoin or shoes or a car can't know it without receipts/ evidence. The problem for the bank is created when either the amount, or the sender, or the account triggers their "alarm". Eg. the sender is blacklisted in their lists, when your account type doesn't justify the amount that you received, more than the usual transactions/ value of them, etc. Don't forget as well that depending on the sender's country is also a very good reason for the bank to ask how you got that money...

[LoyceV]

Just because they ask, doesn't mean that you have to answer.

Good luck without a bank account! The Dutch "farmers bank" kicks out 10,000 customers per month, and that includes customers who refused to provide the information the bank asked for.

[kamma888]

Hello from Canada, I exchange for friends and acquaintances from Canadian dollars to USDT and back (when and who needs what) but I don’t quite understand the mechanics, now I’ll describe the situation, yesterday I exchanged USDT for Canadian dollars, took my percentage, and today I need 10k USDT again, how to work in this case? Just run to the bank every day, throw in 10k and buy USDT on p2p and so on in a circle is not an option since I have to pay taxes in the end, I think there are some alternatives?
Thanks in advance

[LoyceV]

I exchange for friends and acquaintances from Canadian dollars to USDT and back

Why do they need you for this transaction?

today I need 10k USDT again, how to work in this case? Just run to the bank every day, throw in 10k and buy USDT on p2p

Chances are you'll get a big flashing red AML light behind your name at the bank this way!

[bias]

Just because they ask, doesn't mean that you have to answer.

Good luck without a bank account! The Dutch "farmers bank" kicks out 10,000 customers per month, and that includes customers who refused to provide the information the bank asked for.

If we accept any threat, we will be doomed before we know it, man. And probably BTC wouldn't survive.
Banks are not the same entities simply because are banks. "Farmers banks" are specific bank entities, not commercial ones like the ones we talk about and their criteria are very different, as their ToS, their legal requirements, etc. Thus different KYC/ AML procedures and demands for their customers.
Btw, I have more than enough bank accounts from different countries and never faced a critical/ fatal issue. Common issues yes, but critical like closing my account or banning me, never.