New banking rule: no cash deposits by non-account holder

[MoodyBlues]

I recently found out about a new rule (law? I don't know) that at least affects Bank of America customers: the tellers will not accept cash deposits by anyone other than the account holder. A friend owed me some money, so I gave her one of my checking deposit slips and she went to BofA to make a cash deposit. They refused it. They said if she had a check made out to me, along with my account info/deposit slip, they could accept that, but not cash.

Of course I called BofA to ask what's up, and they were pretty fuzzy about the reasoning, but I deduced that it has to do with money laundering and/or drug money, that somehow not accepting cash from non-account holders would crack down on illegal money. But it sure is a pain when someone owes you money and they don't even have checks! (She pays everything with cash or debit card; I'm still pretty much housebound, so going to the bank myself is not an option.)

 

[Unforgiven]

Sounds like you hit the nail on the head RE: money laundering. If she used a debit card, you can have her transfer it to you via google wallet. I used it a couple weeks ago and it was a piece of cake. I got the notification the money was in, and transferred it to my account in seconds.

 

[lunatic59]

I'm sure my bank (Wells Fargo) is just as draconian. They make me give them my ID to make a deposit, even though I am an account holder and I've known some of the current tellers for over 30 years. I really don't mind, though. As inconvenient as it may be, it does make things a bit more secure.

 

[MoodyBlues]

Sounds like you hit the nail on the head RE: money laundering. If she used a debit card, you can have her transfer it to you via google wallet. I used it a couple weeks ago and it was a piece of cake. I got the notification the money was in, and transferred it to my account in seconds.

It was weird, they didn't just come out and SAY it, but what they did say gave me enough to deduce the reason. As for Google Wallet, I've never used it, and I don't know if she has or not. It's definitely something to look into; thanks for the heads-up!

 

[MoodyBlues]

I'm sure my bank (Wells Fargo) is just as draconian. They make me give them my ID to make a deposit, even though I am an account holder and I've known some of the current tellers for over 30 years. I really don't mind, though. As inconvenient as it may be, it does make things a bit more secure.

Yes, it is a good security measure, but it makes me wonder: why need ID when you're PUTTING MONEY IN an account?! I can understand, obviously, why they need ID to make a withdrawal, but a deposit? If some random person wants to put money in my account, why should that be a problem?

 

[svim]

Maybe it's time to start looking into switching to a different bank or a credit union? It's not like anyone is locked into using just one particular bank. (Also, technically BoA cannot make up 'laws' as that's a municipal, legal matter, be it in a local, state, or federal court. Laws apply to all the citizenry, well except on a corrupt president, while a rule is just a commercially focused policy that applies only to each company's clients/customers.)
https://www.thebalance.com/advantages-of-credit-unions-2385855
https://www.forbes.com/sites/moneyb...nions-and-there-arent-many-cons/#2cad6b224bba

 

[MoodyBlues]

Maybe it's time to start looking into switching to a different bank or a credit union? It's not like anyone is locked into using just one particular bank.

Yes, but I've been with BofA since 1991 and really have no reason to switch. The issue in this thread is a minor inconvenience, but not enough to make me switch banks.

(Also, technically BoA cannot make up 'laws' as that's a municipal, legal matter, be it in a local, state, or federal court. Laws apply to all the citizenry, well except on a corrupt president, while a rule is just a commercially focused policy that applies only to each company's clients/customers.)
https://www.thebalance.com/advantages-of-credit-unions-2385855
https://www.forbes.com/sites/moneyb...nions-and-there-arent-many-cons/#2cad6b224bba

That's why I said it AT LEAST affects BofA customers, assuming it's a new rule of BofA's; if it is a new LAW, then it also affects non-BofA customers.

 

[olbriar]

PayPal is another option for direct deposit. Naturally, you both have to have a PayPal account to use the option.
Banking laws have become tighter as time goes by. I wasn't aware of the cash deposit by account holder only law. It doesn't surprise me though.
I well understand not wanting to change banks. I've had my accounts at the same bank since they opened for business in 1973. Both my checking and savings account numbers are are preceded by a lot of zeros. #3 savings and #5 checking I actually opened the accounts prior to the bank officially opening. Are they my best banking option... not likely...but I'm loyal.

 

[lunatic59]

Both my checking and savings account numbers are are preceded by a lot of zeros.

And hopefully it's the opposite for your bank balances.

 

[tube517]

I've deposited money for my mother many times. Once they did card me (this was 2-3 years ago) but I can't recall which bank.

 

[MoodyBlues]

PayPal is another option for direct deposit. Naturally, you both have to have a PayPal account to use the option.

I'm pretty sure she has a PP account, and I do, so that could be an option. Thanks, olbriar.

Banking laws have become tighter as time goes by. I wasn't aware of the cash deposit by account holder only law. It doesn't surprise me though.

As noted in my OP, I don't know if this is a new law or just a new BofA rule. At any rate, it's annoying.

I well understand not wanting to change banks. I've had my accounts at the same bank since they opened for business in 1973. Both my checking and savings account numbers are are preceded by a lot of zeros. #3 savings and #5 checking I actually opened the accounts prior to the bank officially opening. Are they my best banking option... not likely...but I'm loyal.

Since '73, eh? That's a long time. I'm loyal, too, and as long as BofA doesn't do anything to upset me, I figure I'll be with them forever.

 

[MoodyBlues]

I've deposited money for my mother many times. Once they did card me (this was 2-3 years ago) but I can't recall which bank.

Until the first of this year it was not an issue at BofA, and then this new rule hit and, bam!, we can't deposit cash unless I'm physically there. My friend asked at the bank if it would matter if she brought my ID and they said "nope! if she's not here in person we can't accept cash deposits."

 

[lunatic59]

I've been sort of with the same bank since '78. I moved my account (only needed one then) from the Bank of PA to American Bank because they had a branch close to my apartment and the nearest Bank of PA was 20 miles away. Since then the bank has been bought, merged or reorganized as Hamilton Bank, CoreStates Bank, First Union Bank, Wachovia Bank and now Wells Fargo (I probably forgot one in there, too) ... same building, same tellers, same money, just a different logo on the checks.

Edit: Oh yeah, I knew I forgot one ... Meridian Bank.

 

[olbriar]

My bank has changed names once. It's still an independent bank and not owned by a major player. I was just moving to the town it was being built in and I worked for and knew the major six stock holders that were chartering the bank. I even bought a couple of shares. I did the wood work in the new bank and decided to move my little poke there. I received a hand written deposit slip by the bank president they had hired. Talk about good faith ha. I wouldn't do that today. Small towns turn into cities and many banks have branches here now. But back in the day they were the second bank and the original bank had enjoyed a half century of no local competition.

I had the privilege to know the original bank owner as well. I first rented one of his houses and later bought one from him. A great guy that was instrumental in the growth of this small town. He told many great stories of loaning money to the city for this and that. He once bought a train load of crushed rock to put on the main road so it could be traveled on during the rainy season... no loan.. just good for business. He told one funny story I must tell. He and his buddy and their wives were on a trip. He found through is spending that he was a bit shy of cash. His buddy told him about this new credit card thing where you could get instant money and pay it back later. He told himself he'd apply and get one on his return home. He applied for the credit card and he was denied the credit. He had no credit record. He told me he had never borrowed money. He made a living off those that did. The richest man in these parts... by far.. no credit lol.

 

[joe71]

I use to work casino surveillance and have first hand experience with individual's laundering money. I saw a couple of guys one night sit at a slot machine for five hours feeding in tens and twenty, they would insert ten or twenty bills cash out go redeem the EZ pay ticket at some self service kiosk and repeat the process. I alerted slots and security but nothing was done. The next day I came to work and there was an uproar about how someone had feed over $10,000 into a slot machine and never played one dollar.
Management was going nuts. People were going to be fired, the entire surveillance department was on its way out the door. Some slot supervisor started screaming at me and I explained that I had informed slots and security of the suspicious activity and nothing was done. I had saved the coverage and made a detail log entry.
I then had to break some even worse news. After they had finished laundering the money. They went to a different machine inserted a twenty and about the third spin they triggered a bonus round, which gave them five free spins. They kept hitting for $200, $500 and the bonus round would hit again When all was said and done they cashed our $31,000 and didn't pay taxes on it. Why? Because none of the bonus hits were over $1,200 which would have them taxable.they hit mostly for $100-$500 and several times for $1,000. The slot department pulled the machine from the floor the next day

 

[dan330]

I use to work casino surveillance and have first hand experience with individual's laundering money. I saw a couple of guys one night sit at a slot machine for five hours feeding in tens and twenty, they would insert ten or twenty bills cash out go redeem the EZ pay ticket at some self service kiosk and repeat the process. I alerted slots and security but nothing was done. The next day I came to work and there was an uproar about how someone had feed over $10,000 into a slot machine and never played one dollar.
Management was going nuts. People were going to be fired, the entire surveillance department was on its way out the door. Some slot supervisor started screaming at me and I explained that I had informed slots and security of the suspicious activity and nothing was done. I had saved the coverage and made a detail log entry.
I then had to break some even worse news. After they had finished laundering the money. They went to a different machine inserted a twenty and about the third spin they triggered a bonus round, which gave them five free spins. They kept hitting for $200, $500 and the bonus round would hit again When all was said and done they cashed our $31,000 and didn't pay taxes on it. Why? Because none of the bonus hits were over $1,200 which would have them taxable.they hit mostly for $100-$500 and several times for $1,000. The slot department pulled the machine from the floor the next day

question.. why?
was it because.. the $10k going into machine.. but they did NOT play. this created a very low win-to-loose ratio.? money go in, but not going out as a win?
So the machine registered a below average win-to-loose ratio. so when someone did actually play.. that machine HAD to push the odds to favor the player, and push out more wins??? so that the win-to-loose ratio came to the desired setting?

 

[MoodyBlues]

question.. why?
was it because.. the $10k going into machine.. but they did NOT play. this created a very low win-to-loose ratio.? money go in, but not going out as a win?
So the machine registered a below average win-to-loose ratio. so when someone did actually play.. that machine HAD to push the odds to favor the player, and push out more wins??? so that the win-to-loose ratio came to the desired setting?

I don't know for sure, but I'm guessing the win-to-lose ratio wasn't the issue, but counterfeit money may have been. I'd love to hear the actual explanation.

 

[dontpanicbobby]

To quote my President although I didn't vote for him "Fake News"

 

[Dannydet]

Bank of America also can do transfers using Zelle, directly from one account to the other and it's free.

 

[joe71]

Okay to answer your questions, the money probably wasn't counterfeit. Slot machines in Las Vegas have what is called bill validators. These verify the bills you insert are legitimate. They scan the bills for the security features. If the bill is no good it gets rejected. Is it fool proof no of course not. All kinds of bogus bills get by. Most people who try to wash counterfeit bills in the casino do so at live table games such as craps or blackjack. Lets say a counterfeit has $5,000 in bogus bills. He'll walk into a casino by him for $100,$200 on some blackjack game he'll bet $5 0r $10 win or lose he'll bounce. He cashes out at the cage. Goes to the craps table buys in for a $1,000 he bets table minimum on the passline, maybe makes some other bets, but he soon decides the dice aren't hot he goes and cashes out. He goes to another casino does the same thing. He can easily wash $5k in dirty money in a few hours. The guys who feed the money into the slot machine were drug dealers. Most of the money was $10's and $20's but there were a mixture of bills.
What triggered the hit or finally got the slots department attention was there was a lot of money inserted and absolutely no play. The incident with slot machine happened back in 2007-2008. Casinos got better. The last casino I worked at. The slot machineswould alert slots, security and surveillance when someone inserted more than $1,000 in bills into slot machines.this gives the casino time to observe the person and determine the best course of action.
The biggest problem casino's face with counterfeiting is payroll checks. There was an incident where this counterfeit ring started making up phony checks for the defunct company. The checks were for 748, and $535. Nothing out rages. The problem was for about thirty days the same 20 people kept coming in at various hours cashing these checks. Some of these folks would cash a check hang out go to a different cage window and cash another payroll check.
On a busy Friday night the casino cage is rushing to get paychecks cash because they know most likely people are going to gamble. A cage manager one early Saturday morning was doing paperwork and notice a few too many similarities about the checks. So she did a quick Google search and found out the business these checks were from had closed down several years prior.
Long story short . the casino got wise and started detaining individuals for passing bad checks. The police came took people to jail. The counterfeiters would plead guilty, pay a fine and court cost and be on their way. Today most casino's cam verify if a check is good or bad in moments. If they can't they most likely won't cash it