Why Do Banks Do Transaction Reporting?
HAVE YOU EVER WONDERED WHY SO MANY DRUG DEALERS OR OTHER ILLEGAL MONEY LAUNDERING SYSTEMS DON’T WORK OUT SO WELL ANYMORE OR AT ALL?
HAVE YOU EVER WONDERED WHY DRUG DEALERS ALWAYS TRY AND FIND WAYS OF NOT ONLY AVOIDING LAW ENFORCEMENT AGENCIES FOR BRINGING THEIR DRUGS BUT GETTING ALL THAT PHYSICAL CASH OUT AS WELL?
Well, all this is because all banks and financial institutions have to submit what is called a transaction report.
SO WHAT IS THIS WHOLE STORY BEHIND A TRANSACTION REPORT?
Transaction Reporting is when a bank or financial institute submits a report to the specific law enforcement agencies that deal with banking, fraud, and or money laundering in that specific state or even a specific country.
This is to catch any illegal money exchanges by any person whether a normal citizen trying to cheat on his taxes or even drug dealers laundering their money (or at least trying to).
In some cases, other crimes can be tracked through this report as well for example catching paid assassins and who paid them to do the job.
HOW DOES THIS SYSTEM OPERATE?
The Transaction Reporting System is not only automatic ( though a manual report and check-ups can be done any time even remotely) but runs 24 hours a day, seven days a week, and three hundred sixty-five days a year without a break.
They are so strict on the constant control of this report there has to be an instant back up system for any system failures or updates to prevent any of the illegalities slipping through if the system is down as the transactions can happen in mere seconds and with enough money, the criminals can buy that information ( when a system might be down for service or upgrade ) hence the instant backup so it can’t happen
SO WHAT DOES THIS REPORT LOOK FOR?
The system will look for any suspicious types of transactions and in any form that is above ten thousand dollars ( though in some cases and under certain circumstances lesser amounts will also be reported)
WHAT TYPE OF TRANSACTIONS ARE WE TALKING ABOUT HERE?
These are just a few of the types of transactions that the system will flag for investigations.
- 1 – Cash transactions into or out of accounts
- 2 – Chequing accounts deposits and transfers
- 3 – Irregular debit orders
- 4 – Internet and or EFT amounts that are not only huge but regular whether to the same account or different accounts.