# Money Laundering questions asked when making a cheque lodgement.



## WaterWater (14 Dec 2018)

I was lodging a cheque for €6k in to my savings account in my local credit union. It was coming from my current account. Both accounts are in the same name.

I was asked at the counter for the source of the funds. I said that it was coming from my current account.  This did not satisfy the person at the counter. I tried to explain that my bank had already ensured that my funds were covered by money laundering rules.

Am I required to go back, and how far back to tell them where the funds came from?

At the end of the day if I had said that I had sold my two prize budgies would it have made any difference?


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## LS400 (14 Dec 2018)

They are just following the rules, ticking boxes. Im sure they dont give a hoot where it comes from. Giving the actual correct information as you can see, complicates things. If i were lucky enough to receive €6k to lodge to my credit union, it would be from the sale of a car.


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## Steven Barrett (14 Dec 2018)

WaterWater said:


> I was lodging a cheque for €6k in to my savings account in my local credit union. It was coming from my current account. Both accounts are in the same name.
> 
> I was asked at the counter for the source of the funds. I said that it was coming from my current account.  T*his did not satisfy the person at the counter. I tried to explain that my bank had already ensured that my funds were covered by money laundering rules.*
> 
> ...



A person cannot assume that AML requirements are being met at another organisation. 

If you told them that it was savings from salary you would have satisfied the requirements. It's not a big deal really. 


Steven 
www.bluewaterfp.ie


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## Feemar5 (14 Dec 2018)

Under the Criminal Justice ( Money Laundering & Terrorist Financing) acts 2010 - 2013 they are required to determine the source of large funds being transacted thru the credit union.


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## elacsaplau (14 Dec 2018)

The curious thing is that if I lodge money via the teller, questions get asked; if I use machine, I get asked no questions. You may say that that's kind of reasonable but is it??!!


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## Feemar5 (14 Dec 2018)

I lodged via bank transfer and received letter with form to fill in


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## WaterWater (15 Dec 2018)

Feemar5 said:


> Under the Criminal Justice ( Money Laundering & Terrorist Financing) acts 2010 - 2013 they are required to determine the source of large funds being transacted thru the credit union.



Is €6k a large sum?  Do the amounts vary?




SBarrett said:


> If you told them that it was savings from salary you would have satisfied the requirements. It's not a big deal really.[/QUOTE
> 
> "Yes. I could have told them that, but that is not where the money came from."


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## RedOnion (15 Dec 2018)

WaterWater said:


> Is €6k a large sum? Do the amounts vary?


It's not necessarily a 'large' sum, but it might be out of a pattern of transactions on your account for example.


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## Bronte (15 Dec 2018)

I transfer money to Ireland via bank transfer. For various reasons over the years. Never been asked the source of funds.


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## IsleOfMan (15 Dec 2018)

The whole thing is a bit of a joke.

Are these funds from your savings?  "Yes".

OK then.


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## PMU (15 Dec 2018)

IsleOfMan said:


> The whole thing is a bit of a joke.


It's not, actually.  Here's a piece, somewhat sensational, from the Examiner last year on money-laundering and terrorist financing transactions in Ireland from a Europol report . https://www.irishexaminer.com/ireland/ireland-in-eu-top-10-for-money-laundering-458369.html


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## WizardDr (15 Dec 2018)

There are mixed replies here.

What should be noted is that 20% of suspicious transaction reports emanate from Credit Unions (assets €15bn).
Banks 51% or so.
Funds business (assets ..?) ..14%

When asked the Department of Justice (as they compiled the figures for the last 'annual report') they said the Credit Union are over compliant.

The Central Bank report on AML with CUs never raised anything about transaction reporting (they would if it was deficient) and it contrasted sharply with that of the Banks.

Draw your own conclusions.

I would tell the Credit Union about the kitchen sink if I was lodging even if the source is another regulated institution as a key issue is that even if the reporting institution is totally and utterly negligent in over reporting they are covered in the Act.


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## RedOnion (17 Dec 2018)

Col Saunders said:


> WizardDr, can financial institutions ask for this information ? Is it not a breach of an individuals GDPR rights, after all, even GP's no longer put your ailment on a sick cert due to these regulations.


Seriously??
Not only are they 'allowed to', they are legislatively required to.


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## RedOnion (17 Dec 2018)

Col Saunders said:


> GDPR legislatively requires the opposite?


Ah, I see what you mean.
Have you heard that they're not going to be putting photos in passports any more because GDPR requires that?


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## RedOnion (17 Dec 2018)

Col Saunders said:


> Going back to my question, GDPR legislation is in direct conflict with MIFID AML requirements.


They're not in direct conflict, but there is a balancing act between them. Particularly since GDPR broadens the definition of sensitive information.
If you're familiar with GDPR you'll know of the requirements for a 'lawful basis' for collecting and processing data, and a legal requirement such as AML would normally meet that test, depending on the extent of data collection and processing.


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## TrundleAlong (17 Dec 2018)

WaterWater said:


> Is €6k a large sum? Do the amounts vary?



Who decides what amounts are queried?  Is it Mary at the counter or are staff notified on a daily basis by the regulators?


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## TrundleAlong (17 Dec 2018)

WaterWater said:


> Is €6k a large sum? Do the amounts vary?



Who decides what amounts are queried?  Is it Mary at the counter or are staff notified on a daily basis by the regulators?


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## Elnino (20 Dec 2018)

It is up to each individual credit union to set their own limits. These would be entered into their banking system and a source of funds form would automatically print out for the teller when a lodgement exceeds the limit.

Credit unions regularly get inspected by the Central Bank and they can be censored and fined if they are not adequately implementing AML legislation.


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