1

I borrowed money from friends to make a cash purchase of 14k on a house. I deposited the funds in small increments.

I was unable to purchase the house because it was sold to the highest bidder.

So I withdrew 14k from my bank to repay the money I borrowed.

I have the contract from from the realty and a copy of the certified check for 1000 that I had to make to put on the offer toward the house.

Am I going to get in trouble for making such a large withdrawal or are there any form that I should fill out.

plz help

  • 2
    What country are you in? How long before you borrowed the money and are paying back. – Dheer Sep 17 '17 at 16:26
  • im in the u.s / i borrowed the fund thinking that my offer on the house was going to be accepted, but the offer didn't get accepted so I withdrew the funds to pay back the funds I borrowed from friends – Giovanni Manuel Sep 17 '17 at 18:59
  • 2
    while there are some regulations on how much money you can withdraw at one time, generally it is considered your money and you can withdraw it, so it is not exactly clear why you are concerned unless there is something else you are not saying – GµårÐïåñ Sep 17 '17 at 21:47
  • You may get dinged for"structuring", which is what they call making large transactions in small increments specifically to sidestep the banking regulations intended to prevent money laundering. I would suggest seeking legal advice, but not panic. – pojo-guy Sep 18 '17 at 2:54
  • Did you tell the bank when you were prepared to make the down payment, that the money was received as a loan from someone else? The bank needs to know if it's a loan, because they want to be aware of what your other debts are. Lying to your bank about this is setting yourself up for failure, because they may find that the money went in and out, and pursue you for fraud/damages. – Grade 'Eh' Bacon Sep 18 '17 at 12:33
2

In the US, the bank is legally required to report any cash transactions over 10k$ to the government. This normally has no consequences, and you will never hear about it. No need to worry about it.

If the amount is very high, or you do it repeatedly, or the government has other (pre-existing) reasons to look at your finances sharply, they might ask you where the money came from and what you did with it, but your explanation is perfectly fine (assuming it is true).

The idea is to catch money-launderers that try to get large illegal cash incomes into the banking system. Classic example is the drug lord who makes a million a month in cash from selling drugs, and needs to get this million into the banks (as you can't buy houses or luxury cars or yachts with cash without getting FBI attention right away).

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .