As we approach January 1, 2000, we're hearing more reports of people withdrawing cash in order to have a "safety net" of one or two
months of cash. Most people aware of the Y2K threat agree this is a reasonable action in order to safeguard against possible
banking problems, and many programmers -- as reported in an earlier WIRED story -- are planning on withdrawing rather large
amounts (like $50, 000 in cash...).
YOU COULD GO TO JAIL Unfortunately, most people are completely unaware of the $10,000 cash rule that could land you in jail for
taking out your own money! Here's how it works:
In order to keep track of who has cash, the federal government requires banks to submit a Cash Transaction Report (CTR) any time
someone withdraws over $10,000 in cash. The reasoning behind this rule is that only drug dealers and money launderers use cash,
and therefore keeping a "Big Brother"-type database on drug dealers is OK. The reasoning is flawed, obviously, but the end result is
that if
you
decide to take out $10,000 in cash, you are possibly presumed to be a drug dealer, too, and you wil undoubtedly get your social
security number entered into some federal drug-dealer database. Nobody knows if that database is actually Y2K-compliant, of
course, but it's certainly not a database you'd like to see your name in.
HERE COMES THE ILLEGAL PART Most people who aren't drug dealers prefer to stay off the drug dealer database, so a common
tactic to avoid the CTR reporting requirement would be to withdraw smaller amounts of cash at specific intervals. For example, they
might take out $5000 at a time. That way, they avoid the CTR and they don't get listed in the drug dealer database.
Because of this obvious loophole, Congress passed a law that makes this activity illegal. What exactly is illegal? Withdrawing more
than $10,000 in cash in order to avoid the CTR reporting requirement. (They call it "structuring.")
Therefore,
any
person who withdraws more than $10,000 in cash while avoiding the CTR reporting is committing a crime and could be subject to
federal prosecution. As usual, it doesn't matter whether you are aware of the law. All that matters is that you withdrew more than
$10, 000 of your own money while avoiding the reporting requirement.
Y2KSUPPLY.COM offers this warning to those subscribers who are considering cash withdrawals: beware of this drug-dealer law!
There are also similar laws on
depositing
large amounts of cash. In fact, you are automatically considered suspect at many airports now if you pay for your plane ticket in
cash. Especially if you're leaving the country.
"Cash" has become, in the eyes of the federal government, the currency of crime. They seemingly assume that anybody who
carries, deposits or withdraws large amounts of cash to be a criminal. It's FAR easier to track you down when you use credit cards
and checks, because those devices leave a record of the transaction. But cash? No trace. In fact, one of the major arguments
against the concept of "electronic money" is how easily it would allow the federal government to log and track the spending habits of
every person using them. Americans have a well-documented history of wanting their privacy, and in fact the American Revolution in
1774 was spurred by the desire of Colonists to be free from British monetary control. (It wasn't about taxes on tea.)
Certainly, criminals
do
use cash, but not everybody who uses cash is a criminal. That our federal government would make it a crime to access our OWN
money is seriously disturbing.
As you prepare for Y2K, be aware of the law, and stay legal.
- Webmaster, Y2KSUPPLY.COM |
