All Australians can get flagged when making a big cash deposit.
Many people seem to think that depositing large amounts of cash in their bank accounts will result in them getting flagged by the bank, having their accounts frozen and suspended. This is a myth that has been created merely due to uncertainty. People should know the truth about this, and not store all their cash underneath their mattresses! The bank is where your money is supposed to be, that’s why they’re here.
Let’s talk about that today and debunk it. How much money do you have to put inside your bank account to get ‘flagged’, especially in Australia? So, Let’s begin.
How Exactly Do You Get Your Bank Account Flagged?
Don’t be worried, you can deposit as much cash as you want, you will not get your account frozen. However, this does not mean that the bank will not notice that you are putting large sums into it. What this means is that if you deposit something over the $10,000 limit or something that is exactly that amount, the bank by law has to report this deposit to AUSTRAC which is also known as the Australian Transaction Reports and Analysis Centre.
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Your transaction was reported by law to track means of funding terrorists or for money laundering. With each deposit over $10,000 the transaction will be filed.
Seemingly, this is an everyday situation and is merely procedure, so it’s nothing to be worried about. In the same way, if you ever want to withdraw money from your bank account and it’s over the $10,000 threshold, you will be interviewed and asked for ID. Afterwards, the bank will determine whether to allow you to take the money out.
However, the bank may get suspicious of you, not based on how large the deposited amount is, but on the activity of your account. If you continuously keep depositing sums over $100,000, then transferring it to another account and transferring it back will make the bank officials believe they are dealing with something quite fishy. But, before they come to any conclusions they will usually try to contact you and find out what exactly is going on.
Nothing you do will make your Australia bank account get flagged unless you were being highly suspicious, which only happens in rare cases. And as you now know, you won’t be penalized for depositing large sums of cash.