Hi all. I inherited property abroad worth approx 180k 5 years ago and it's only just sold. My CAT bill was 0 as I was below the threshold. I am now going to be transferring the proceeds of sale into Ireland and I didn't make any extra money so don't owe any CGT. I know the bank or credit union have a threshold above which they notify the Revenue, or something. Do I need to be prepared for an audit, or some sort of official return to be made when the money is transferred? I am doing my PAYE Form 16 online now so it's just occurred to me, but I did declare it all properly 5 years ago.
There are two issues being conflated here:
- Tax
- Money laundering
The bank don’t want, and have no interest in, a file. That’s not their job. They’ll have a policy and procedures that they’ll follow, in order to comply with money laundering regs.
I have very recently transferred a six-figure sum from a bank in Ireland to one abroad.
The recipient bank wanted to know source of funds (a house sale) and was quite happy when I provided them with paperwork concerning the sale.
I doubt it works much different in reverse, as AML obligations on banks within the EU are reasonably similar.
OP asked about tax. That's answered.
Anybody who knows anything about AML practices will know it's a criminal offence to explain to anyone how to circumvent them, so therefore they can't explain how they work.
As @torblednam noted, no bank wants a file.
I’m not sure what you mean by them being “quite happy when I provided them with paperwork” - they were following procedures when they asked you about the source of the funds, and they will have continued to follow procedures subsequently. That may (or may not) have involved them completing a report that would be transmitted to the relevant body / bodies.
Anybody who knows anything about AML practices will know it's a criminal offence to explain to anyone how to circumvent them, so therefore they can't explain how they work.
As @torblednam noted, no bank wants a file.
Firms should put in place adequate policies and procedures to identify unusual transactions or patterns of transactions. Examples may include transactions or patterns of transactions that are: Larger than the Firm would normally expect based on its knowledge of the customer, the business relationship or the category to which the customer belongs; Of an unusual or unexpected pattern compared with the customer’s normal activity or the pattern of transactions associated with similar customers, products or services; or Very complex compared with other similar transactions associated with similar customer types, products, or services; and the Firm is not aware of an economic rationale or lawful purpose or doubts the veracity of the information it has been given. Where Firms detect unusual transactions or patterns of transactions, they should apply EDD measures sufficient to help the Firm determine whether these transactions give rise to suspicion. Such EDD measures should at least include: Taking reasonable and adequate measures to understand the background and purpose of these transactions, for example by establishing the source and destination of the funds or finding out more about the customer’s business to ascertain the likelihood of the customer making such transactions; and
Before or after the transaction?Semantics perhaps, but I recently provided a bank with a 20-page pdf of scans of documents relating to a house purchase.
Before or after the transaction?
Sorry, I didn't realise context of my comment wasn't clear.About two thirds of the way through. I was doing it in €10k increments.
Sorry, I didn't realise context of my comment wasn't clear.
There's no point giving a file to a bank in advance.
There are over 20,000 suspicious transition reports annually in Ireland. You wouldn't know whether or not a transaction had been reported. Mainly because it's illegal to tell you.
We're miscommunicating.I never suggested that.
It's a very big number!!but what is the denominator?
Soooo... It's the banks, not necessarily the Revenue, who may flag the transfer and I should have the documents relating to the sale ready in case the bank looks for it, is my summary of the above?
I would have thought it wouldn't be the banks looking for it at all.
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