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Hypothetically, I am receiving a large amount (over 100 grand) from a company through a wired transaction. As the receiver, would I be questioned about the source of funds? Or just the company would be questioned? Consider the source of funds is "clean"

Edit: Ok, the situation is my mom who lives in Vietnam lend 150k to a friend who also lives in Vietnam. I and that friend's daughter live in US. The daughter will pay that loan for her mom to me in US with a wire transfer. So basically there will be no proper documents for reasons of the transfer. Can I receive that money directly from her bank to my bank. If there is any reports by the bank, they should be from her end. Is that correct?

I'm buying a house, that's why I need her to pay. I was going to withdraw that money with a cashier check, made to the title company.

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    What country is the source of funds and what country are you in? If this is legit what is your concern? – Dheer Dec 9 '18 at 8:30
  • The source of funds is in US, and this is a domestic transfer. My concern is whether this would trigger any investigation on me due to the large amount. – Nat Dec 9 '18 at 11:31
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    Large transaction are monitored. There can be investigation. If the funds are legit there is nothing to worry. – Dheer Dec 9 '18 at 14:27
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    Your first sentence says the source of the funds is a company, but your edit makes it sound like it's coming from a person. The distinction might matter. – TTT Dec 9 '18 at 16:49
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    Now that that you have received the 150K what are you going to do with it? If you keep it, the money will be a gift, and if you send it out of the country that might trigger paperwork. – mhoran_psprep Dec 9 '18 at 18:38
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There are quite a few issues with this kind of arrangement.

This would be seen as Gift you received from your friend in US; your friend would be liable to pay Gift tax in the US; assuming both of you are US tax residents.

If what you are saying can be established; your mother loaning funds in Vietnam to someone and that someones daughter is paying you in USD; this looks like avoiding / violating FX regulations in Vietnam.

It is best to avoid such arrangements.

  • Is there anyway this would look like a "loan"? It doesn't really violate regulations in Vietnam coz it's kinda in "grey area" – Nat Dec 10 '18 at 1:47
  • @Nat You can take a loan from your friend in the US, create appropriate documents and pay it back. If you are paying any interest, this will be treated as income to your friend. – Dheer Dec 10 '18 at 5:22
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The bank will do any reporting if a transaction requires it, and theoretically, it could be investigated, meaning you could be asked by authorities why you receive that money and what the source is.

Practically, even 500k$ is not a 'large' amount, and the chance that anyone asks about it is near zero. They don't have enough people to investigate all 500 Millionen $ transfers, so unless your sender's name is 'Colombia Drug Cartel', nothing will happen.

  • Ok, the situation is my mom who lives in Vietnam lend 150k to a friend who also lives in Vietnam. I and that friend's daughter live in US. The daughter will pay that loan for her mom to me in US with a wire transfer. So basically there will be no proper documents for reasons of the transfer. Can I receive that money directly from her bank to my bank. If there is any reports by the bank, they should be from her end. Is that correct? – Nat Dec 9 '18 at 15:19
  • I don't know which of the two banks reports it, but it doesn't matter. Your explanation is sufficient if you are asked (which will not happen), so don't worry. – Aganju Dec 9 '18 at 15:27
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    @Aganju - my understanding (read that to mean 'I thought' or 'I recall', not '" know for sure') is that it's actual cash deposits that require reporting. Not electronic transfers, checks, etc. Just wads of money, as in a briefcase filled with $100 bills. – JoeTaxpayer Dec 9 '18 at 16:09
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    I agree with @JoeTaxpayer. I don't think the $10K threshold applies here. – TTT Dec 9 '18 at 16:51
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    This is definitely incorrect. The threshold for wire transfers is $3,000, and it involves recording certain information and ID, not direct reporting. – user71659 Dec 9 '18 at 19:50
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The additional information in the comments regarding using the funds to purchase a house, adds an additional complexity.

The heart of the question is will you be questioned about the source of the money, and the answer is maybe.

If the purchase of the house involves getting a mortgage, the lender may look at the large influx of money into the account and want proof that it isn't a loan. They may require that the source of the funds sign paperwork that there is no obligation to pay any of this money back.

  • There won't be mortgage payments involved. That amount is to pay off the house – Nat Dec 11 '18 at 16:44

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