What Happens if You Withdraw More Than $10,000 From the Bank?

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When you put money in a bank account, you expect to be able to take that money out with no problems. Even if you need to access a serious chunk of it. But if you have a big expense coming up and plan to withdraw $10,000 or more from your bank account, you should know that things may not be as simple as they seem. That's because of a rule created by the Bank Secrecy Act (BSA).

Here's what you need to know about it, and how it can impact you.

The Bank Secrecy Act

Originally called the Currency and Foreign Transactions Reporting Act of 1970, the BSA "authorizes the Department of the Treasury to impose reporting and other requirements on financial institutions and other businesses." It's meant to help detect and prevent crimes like money laundering and tax evasion.

In the 2023 fiscal year, about 4.6 million suspicious activity reports were made to the Financial Crimes Enforcement Unit (FinCEN) via 294,000 financial institutions and other e-filers.

Most people won't have to worry about the BSA's requirements in the course of their usual transactions. For example, it requires banks to report suspicious activity and keep records of cash purchases of negotiable instruments. But you should note that the BSA includes a requirement for banks to report any withdrawals of $10,000 or more per day to the FinCEN.

What can happen if you withdraw more than $10,000?

If you have a big account withdrawal coming up, you should be aware of the BSA's reporting requirement. But the most important thing to know here is that a report doesn't mean you've done something wrong or that you will be viewed by the FinCEN as a criminal. You are not automatically in trouble.

And it doesn't mean that you should avoid taking these large withdrawals from your checking account or (much worse) try breaking them up to avoid the BSA. The latter, referred to as "structuring," will in fact lead to a civil monetary fine when discovered. So it's best to just take out however much money you planned on withdrawing, regardless of this rule.

In fact, if you only have one $10,000 or more withdrawal, you probably have nothing to worry about as far as fines or legal action are concerned. However, the report may delay the process a bit, and you may even have to provide proof of your identity. And, of course, your account may be scrutinized to ensure everything is above board, particularly if you will have more than one of these big withdrawals coming out of your account.

Should you be concerned?

Ultimately, unless you're conducting criminal activities via your bank account, you probably don't have to worry about anything bad happening just because you withdraw your own money. Even if it's over the $10,000 threshold. But by understanding when and why the government cares about those transactions, you won't be alarmed if you discover that your bank has reported one of your transactions.

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