How does one safely deposit large USD amounts ($50k-$100k) after selling BTC?

[colinistheman]

Does anyone have any experience with withdrawing large dollar amounts to their bank account with coinbase?

I haven't had any issues with coinbase xfers.  This is not cash from a banking secrecy standpoint as it is an electronic transfer.  BSA is looking specifically for 'cash' at the bank teller level when talking about the nice little form they give me attitude on

The real quesiton is what kind of reporting requirements does Coinbase have.  I'm not sure they have any right now, but I'm betting it will become like a 1099-k (Paypal) or 1099-B (brokerage) in the future so that the IRS knows what's going on.

Since the IRS has declared btc to be property, be sure to hold large amounts 1yr +1 day so you can get capital gains treatment.

Cool thanks for the advice.

Yeah, I definitely won't be bringing a wheelbarrow full of dollar bills into the bank

It will be coming electronically from coinbase.com

[DeathAndTaxes]

This would be one of my concerns-- that the SAR would be applied because it is a bitcoin-related transaction. I would have to rule that out before doing the transfer. I guess asking the bank before I do it would be the best way.

All financial institutions are prohibits by criminal and civil penalties from disclosing how to avoid a SAR, what transactions might constitute a SAR, or even if they have or have not filed a SAR against you or any other account holders.   The penalties are rather excessive so don't expect a bank to break this rule.  Financial institution in this case is any entity which is a mandated to file a SAR. That would include banks, brokerages, and MSBs (like bitcoin exchanges).

[colinistheman]

So basically they won't tell me if I ask (if my transfer from bitcoin->USD->bank account would trigger any flags), and I won't know until I try? Sounds un-fun and risky.

[bgibso01]

The CTR (currency transaction report) is for cash (as in those physical pieces of paper with dead presidents on them).  A bank wire or ACH for $10,000 (or $10,000,000) doesn't warrant a CTR.  However your bank may file a SAR (suspicious activity report) for just about financial transaction they find out of the ordinary (or even ordinary).  The "S" is SAR is suspicious.  It isn't proof of criminal activity or money laundering merely suspicion.  That definition is very loosely defined and since the filings are secret, banks have nothing to lose by filing liberally.

This would be one of my concerns-- that the SAR would be applied because it is a bitcoin-related transaction. I would have to rule that out before doing the transfer. I guess asking the bank before I do it would be the best way.

Honestly, they probably wouldn't tell you that they are going to send one.  You'll know about the CTR, but not necessarily the SAR.  I'm fairly sure I've had a few SARs already.  I usually have 1 CTR every month or so.  Sometimes its better to have them when you are dealing in a cash business than not ever showing any.  As an auditor, that's a bigger red flag to me.

[DeathAndTaxes]

So basically they won't tell me if I ask, and I won't know until I try? Sounds like not the answer I want to hear

That is the short version. Also "financial institution" covers more than just your bank.  PayPal is a financial institution so is any MSB (like a bitcoin exchange registered with FinCEN).  They all are under the same rules including the non-disclosure rules.   The odds are if you have done any large or unusual transactions probably more than one SAR has been filed regarding your activity already.  Welcome to the land of the free.

[colinistheman]

So I guess now the question is: Has anyone had a bank deposit coming from coinbase trigger a SAR report (Suspicious Activity Report) which resulted in difficulty/inability to get the funds?

[DeathAndTaxes]

So I guess now the question is: Has anyone had a bank deposit coming from coinbase trigger a SAR report (suspicious activity report)?

Nobody would know.  They are prohibited from disclosing when a SAR is filed.  The SAR database is "secret".  You have no method of knowing if there is one or more SARs in your name right now.

[bgibso01]

So I guess now the question is: Has anyone had a bank deposit coming from coinbase trigger a SAR report (Suspicious Activity Report)?

probably

[bgibso01]

If you are on the up and up, you really won't notice either way.

[colinistheman]

So I guess now the question is: Has anyone had a bank deposit coming from coinbase trigger a SAR report (Suspicious Activity Report)?

probably

I should clarify:

So I guess now the question is: Has anyone had a large bank deposit ($50k-$100k) coming from Coinbase trigger a SAR report (Suspicious Activity Report) which resulted in difficulty/inability to get the funds?

[colinistheman]

If you are on the up and up, you really won't notice either way.

Yeah everything is honest here and I pay my taxes and such

[bgibso01]

If you are on the up and up, you really won't notice either way.

Yeah everything is honest here and I pay my taxes and such

Then no worries.  The worst I've had so far is my branch teller called and asked a few questions about bitcoin because their internal audit had questions (*cough*cough*).

I've also had over $200k in paypal hit the same account without issues.

[LostDutchman]

Depsoiting is perfectly safe and seucre.

It's getting out  tons of fiat cash that gets sticky.

Well then I've already accomplished the difficult part

Remember, if you're going to get rich, do it in the dark.

[colinistheman]

If you are on the up and up, you really won't notice either way.

Yeah everything is honest here and I pay my taxes and such

Then no worries.  The worst I've had so far is my branch teller called and asked a few questions about bitcoin because their internal audit had questions (*cough*cough*).

I've also had over $200k in paypal hit the same account without issues.

When they asked a few questions about bitcoin, what did you tell them? And what was their response?

[bgibso01]

Depsoiting is perfectly safe and seucre.

It's getting out  tons of fiat cash that gets sticky.

Well then I've already accomplished the difficult part

Remember, if you're going to get rich, do it in the dark.

Solid advice!  I figure 'they' have already got a nice file on me anyways since I'm a licensed professional, international wire transfers, mdse received direct from China, 1099s, K-1s, etc.

[bgibso01]

If you are on the up and up, you really won't notice either way.

Yeah everything is honest here and I pay my taxes and such

Then no worries.  The worst I've had so far is my branch teller called and asked a few questions about bitcoin because their internal audit had questions (*cough*cough*).

I've also had over $200k in paypal hit the same account without issues.

When they asked a few questions about bitcoin, what did you tell them? And what was their response?

That it's a digital currency and the IRS and FINCEN have already issued statements on it so their audit folks need to brush up   They were fine with it then.

[colinistheman]

ok cool

[fryarminer]

withdraw $9999 each time. and open multiple accounts

This.

Under $10,000 no flags are raised. I don't think.

[DeathAndTaxes]

So I guess now the question is: Has anyone had a bank deposit coming from coinbase trigger a SAR report (Suspicious Activity Report)?

probably

I should clarify:

So I guess now the question is: Has anyone had a large bank deposit ($50k-$100k) coming from Coinbase trigger a SAR report (Suspicious Activity Report) which resulted in difficulty/inability to get the funds?

A SAR is just a report.  You make the transaction, and financial institution(s) files the report(s).  No financial institution has police powers.  They don't have the authority to seize suspected funds.  That is the job of law enforcement and it requires due process not suspicion.  If law enforcement is filing warrants to have your assets seized as part of a criminal investigation a SAR or CTR is the least of your worries.

[jbreher]

withdraw $9999 each time. and open multiple accounts

This.

Under $10,000 no flags are raised. I don't think.

Color me stunned. After all the factual info here in this thread about why this is a bad idea, you don't 'think' flags are raised? I don't believe you're thinking at all.

This is a special sort of activity for which the regulators are on alert. At least here in the land of the formerly free and the home of the cowed. They deem it important enough that they have their own pet term for it (structuring? - don't remember). But finagling your financial transactions in a way to purposely skirt the limits in place is also considered criminal, and earns you a special spot on their hit list.

Does this suck? In my mind yes. Is it fair? In my mind no. But this is the world in which we live.

If you want to play Amerikan roulette in this manner, then I guess that is your right. But please don't drag others to the gulag due to your ignorance.