U.S. bank closing all of my deposit accounts because of bitcoins

[firefop]

Moving to a different bank isn't an easy task.

of course it is:

Just go close the accounts, take your cashiers check and walk into any local credit union. Explain to them your business (arbitrage) and that you need whatever volume of wires over whatever time frame... I'm sure they'll be able to set you up with the accounts you need.

[firefop]

WAR ON BITCOIN WAR ON BITCOIN ! ! , it's this hysterical over excited posting that seems to be a part of every thread which is simply efforts to manipulate pricing.

In December last year I had my yorkshire bank accounts frozen after £15,000 of trading of Bitcoin this was lots of bank transfers in and out of my private account, the surge of business  activity into a private bank account had caused the freeze not Bitcoin. They were happy for me to continue buying/selling bitcoin as long as I opened a business account within a month. In the end I opened the business account with Barclays who didn't have a problem with me buying and selling Bitcoin either.

One of the very best things for bitcoin would be if the USA started a "war on bitcoin"... every single 'war on' anything that the US starts fails miserably and their target becomes legal and/or legitimate.

'war on drugs' anyone?

[cp1]

Moving to a different bank isn't an easy task.

of course it is:

Just go close the accounts, take your cashiers check and walk into any local credit union. Explain to them your business (arbitrage) and that you need whatever volume of wires over whatever time frame... I'm sure they'll be able to set you up with the accounts you need.

And then change you and your wife's direct deposits, move your safe deposit box (if the new bank has any room!), change the mortgage payment, the car payment, all of your credit card auto-pays, the water bill, the garbage bill, the insurance bill, order new checks, deal with a new ATM pin.

[TheButterZone]

He was moving thousands of dollars through is personal accounts to do arbitrage across exchanges.  You should at least talk to your branch manager before starting this kind of activity.

Agreed.  Banks have to pay for all your transactions, and I doubt they're going to be willing to let you play with hundreds and thousands of deposits and withdrawals, using their system to do so.  that costs them money.  I understand why they closed it down, and it has nothing to do with some "war on bitcoin".  Banks just dont want to pay the fees.   They got pissed off at me because i was transferring money in and out of a savings account too much last month.  And all i was doing was transferring to my other accounts. 

https://thebutterzone.wordpress.com/2013/02/10/bitcoins-u-s-savingsmoney-market-accounts-dont/

[Soros Shorts]

I recently spoke with someone who works as a compliance officer at a large bank (in the US) regarding this issue. She basically told me that accounts that move a lot of money in and out of the country automatically trigger alerts that put them into the so called high-risk category. These accounts then need to be kept under closer tabs, as in someone needs to manually track subsequent suspicious transactions and either file Suspicious Activity Reports or record down the reasons why the bank thinks that the transactions are not suspicious after all. (This could be as simple as someone from the bank calling you and asking you what these wire transfers are all about and then adding your response to the file.) Failure to do so could result in heavy fines against the bank. This is a lot of work for the bank, so at some point the bank just closes these troublesome accounts if they feel that the revenues that these accounts bring in do not justify the costs required to maintain regulatory compliance.

This is true for both personal and business accounts, but the handling of each is different.

[TippingPoint]

For every action there is a reaction, equal in force and opposite in direction.

[calian]

I recently spoke with someone who works as a compliance officer at a large bank (in the US) regarding this issue. She basically told me that accounts that move a lot of money in and out of the country automatically trigger alerts that put them into the so called high-risk category. These accounts then need to be kept under closer tabs, as in someone needs to manually track subsequent suspicious transactions and either file Suspicious Activity Reports or record down the reasons why the bank thinks that the transactions are not suspicious after all. (This could be as simple as someone from the bank calling you and asking you what these wire transfers are all about and then adding your response to the file.) Failure to do so could result in heavy fines against the bank. This is a lot of work for the bank, so at some point the bank just closes these troublesome accounts if they feel that the revenues that these accounts bring in do not justify the costs required to maintain regulatory compliance.

This is true for both personal and business accounts, but the handling of each is different.

Why couldn't they just ask the customer to stop the undesired transactions rather the closing the account preemptively?

[lucasjkr]

I recently spoke with someone who works as a compliance officer at a large bank (in the US) regarding this issue. She basically told me that accounts that move a lot of money in and out of the country automatically trigger alerts that put them into the so called high-risk category. These accounts then need to be kept under closer tabs, as in someone needs to manually track subsequent suspicious transactions and either file Suspicious Activity Reports or record down the reasons why the bank thinks that the transactions are not suspicious after all. (This could be as simple as someone from the bank calling you and asking you what these wire transfers are all about and then adding your response to the file.) Failure to do so could result in heavy fines against the bank. This is a lot of work for the bank, so at some point the bank just closes these troublesome accounts if they feel that the revenues that these accounts bring in do not justify the costs required to maintain regulatory compliance.

This is true for both personal and business accounts, but the handling of each is different.

Why couldn't they just ask the customer to stop the undesired transactions rather the closing the account preemptively?

A) An individual account, if you're an ordinary person, isn't too important to them. In aggregate, they are, yes, but any single account, not so much.... much easier just to have a form letter go out and be done with it.

B) The bank is operating under the assumption that whatever activity that's going on in the account is activity that the account owner needs to do. So they'll say "well, when we opened the account, he was just a regular depositor like all the others, but now he's doing all these international wires and shifting money all over the place, we don't like that". They don't look at transactions as being optional (they'll never say "would you please stop depositing money into your account?" or "if you wouldn't mind, please stop making withdrawals" (second part, actually, they will for savings accounts and money market accounts; those account types are limited to 6 withdrawals or less per month otherwise they convert to checking accounts. Not like there's any difference in this day and age of 0% interest rates, but when that changes, there MIGHT become more of a difference between checking and savings)

[coinprize]

I still use my account to deposit to mt.gox's account.
I never notice the strange rules from my bank.

I think your account should be locked by other reasons.

[cp1]

Are transfers to coinbase within the US?

[Trader Steve]

Get a new bank, problem solved.

+1

Stop using banks altogether - Bitcoin was created as an alternative to this monetary tyranny. Why should banks embrace it?

[QuestionAuthority]

Get a new bank, problem solved.

+1

Stop using banks altogether - Bitcoin was created as an alternative to this monetary tyranny. Why should banks embrace it?

Your landlord takes Bitcoin?

[CurbsideProphet]

Are transfers to coinbase within the US?

Yes, Coinbase is domiciled in the US.

[cp1]

Are transfers to coinbase within the US?

Yes, Coinbase is domiciled in the US.

Thanks, sounds like that may be a good way to avoid some of the risk of transferring money overseas then.

[Bitcoinpro]

Get a new bank, problem solved.

+1

Stop using banks altogether - Bitcoin was created as an alternative to this monetary tyranny. Why should banks embrace it?

Your landlord takes Bitcoin?

rent money is dead money

[razorfishsl]

Its called money laundering...... you need a license and a clear  COC

What??? Arbitrage does not, in any way, equal money laundering. Christ, has everyone been brainwashed?

 This was not a guy trading a 'few' coins he was moving significant amounts of money.

I have a number of totally legit companies, there are many laws.. for which I  employ accountants and lawyers, because they are EXPERTS in their field.
I looked at opening Bitcoin trading and an exchange, I consulted these experts, we discussed  manual/automated buy and sell/ offshoring amongst other methods.

It is considered MONEY LAUNDERING..... UNLESS you have the correct licenses in place.

[SeanArce]

My old best friend works at a bank now. The irony

[QuestionAuthority]

Get a new bank, problem solved.

+1

Stop using banks altogether - Bitcoin was created as an alternative to this monetary tyranny. Why should banks embrace it?

Your landlord takes Bitcoin?

rent money is dead money

My house is paid off. I pay my rent to the California Property Tax Board every November and February. My rent goes up every year and they don't take Bitcoins.

[ellard]

Walk in and hand a note to the bank teller saying:

Give me all your bitcoins.

Of course don't include anything sayings like this is a stick up or anything.
It's just a joke like if you walked in and asked the teller to give you all her quarters because you are doing laundry. She will laugh, you will laugh, everyone in the bank will giggle and laugh and fun will be had by all. 

[Inedible]

Walk in and hand a note to the bank teller saying:

Give me all your bitcoins.

Of course don't include anything sayings like this is a stick up or anything.
It's just a joke like if you walked in and asked the teller to give you all her quarters because you are doing laundry. She will laugh, you will laugh, everyone in the bank will giggle and laugh and fun will be had by all. 

Not sure if troll