Capital Control

[The Irish Ram]

Have any of you heard of it? The capital is the money in your bank account. The control is by the banks.

When the gov. in Cyprus needed money they helped themselves to a a nice chunk of everyone's bank accounts. The Eurogroup of 17 nations said that what happened in Cyprus would henceforth be the "template" for future governments everywhere. The FDIC and the Bank of England agreed to the new "rule" in Dec. 2012.
On 1/28 My Bank (Russia) implemented a complete ban on cash withdrawals by their customers for a week and beyond.
A man named Stephen Cotton in London went into his bank of 28 years to withdraw 7,000 pounds he owed his mother. The bank told him, "no".
They said he didn't provide them with a satisfactory explanation of what the money was for. Then they told him they wanted a letter from his mother! He asked for 6,000 then 5,000 then 4,000. They finally agreed to give him 3,000 pounds of his own money.

According to new banking laws, our deposits belong to the bank. According to HSBC, based in London, there is no requirement to pre-notify customers of this change in policy.

Chase has just limited cash withdrawals to $50,000 per statement cycle. And they will fine you for trying to take out any more than that. The controls apply to all business accounts, large or small. Mine is a small business account but I pay cash for whatever I buy to avoid paying interest. I can't do that now.

An Arizona businessman was refused a withdrawal of $17,000. in cash. He called the president of the bank and was denied the money. It wasn't until he demanded cashiers checks for all of his money in all of his accounts that the president agreed to give him his $17,000.

I thought capital control was suppose to control the amount of foreign money flowing into an out of a domestic economy or to stop a run on a bank.

Another "control" I just found out about was our electric. Due to an exceptionally cold January because of EPA controls this whole area was only 1,000 MW from our electric being cut off completely, in -15 below weather. According to our electric company, we should expect such shut downs to occur in 2015 and 16.

What is happening to this country?

 

[FA_Q2]

Do you have a source for this. It sounds nuts.

I do know that the last time I tried to withdraw 10K the bank demanded a reason and then refused to give me MY money until I furnished one. Apparently the IRS has deemed it illegal for the bank to give me my own money without a furnished reason.

 

[Roguewave]

There is a US Treasury rule which requires financial institutions to report transfers of $10k or more, but I am unaware of any rule requiring the depositor to give reasons for a transfer to either the institution or the Treasury. I often transfer amounts greater than $10k but do it in lesser increments over several transfers to not trigger the reporting thresholds. I have no idea if that actually frustrates the rules or not. I have always assumed the rules are to identify drug dealers and other miscreants.

 

[MikeK]

[...]

What is happening to this country?

A dumbed-down, essentially ignorant, complacent, politically fragmented population. This circumstance is evident here and on every politically-oriented Internet forum you'd care to visit. Consequently, no authoritative entity, whether government or corporate, has anything to fear from the utterly impotent collective American public.

We have become Rome.

 

[Iceweasel]

There a LOT wrong with the country but there is no source for your information. and some of it just sounds off. The EPA controls the whole nation but not who gets what. It sounds like the power company was saying they were at their peak limit. While I do blame the EPA in part, it's mostly the dimwits that give them power over their lives.

 

[freedombecki]

[...]

What is happening to this country?

A dumbed-down, essentially ignorant, complacent, politically fragmented population. This circumstance is evident here and on every politically-oriented Internet forum you'd care to visit. Consequently, no authoritative entity, whether government or corporate, has anything to fear from the utterly impotent collective American public.

We have become Rome.

Last time I looked, a law was passed in my lifetime for the purpose of incarcerating anyone who mentioned that a very, very bad politician should be tortured and hung out to dry.

Obeying the law should not be interpreted as complacency. And obeying that particularly recent law tends to increase a phenomenon that insulates those in charge known as groupthink, in which the empowered group thinks everything they come up with will be easy to foist on people with no worries about retaliation of any kind.

Even so you may have a stronger case than me, but I believe in the American people. I believe that when the going gets tough, we shall not fail. I believe those who underestimate us and try to take advantage will not prevail, but will eat our collective dust. I pray that God will continue to have mercy on the American people.

 

[HenryBHough]

The paperwork required of each bank manager to explain a withdrawal of $10,000 or more is a real burden.

For that reason when my local branch screws something up - like cashing a check for an amount other than that for which it was written (usually by a few cents) - I go in and make a cash withdrawal of $10,001.00. Enough that the branch manager had to do about an hour and forty-five minutes of paperwork.

Only once was she foolish enough ask why I had made the withdrawal.

 

[oldfart]

There is a US Treasury rule which requires financial institutions to report transfers of $10k or more, but I am unaware of any rule requiring the depositor to give reasons for a transfer to either the institution or the Treasury. I often transfer amounts greater than $10k but do it in lesser increments over several transfers to not trigger the reporting thresholds. I have no idea if that actually frustrates the rules or not. I have always assumed the rules are to identify drug dealers and other miscreants.

There are exceptions to the reporting requirement. A good banker would see if any applied, or if some financial transaction other than an "unusual currency transaction" were possible before disbursing the money and reporting it to the Treasury. I have handled IRS audits triggered by the reporting requirement. If you want an exhaustive source & app audit, this is the best way to get it. Be sure to be able to identify the source of every bank deposit for the last six years and pray that each year your sources of funds match your uses of funds within 2%. Any discrepancy either way is considered unreported income. Oh, and if even one transaction is with a foreign account, be prepared to have all of your accounts frozen for a couple of years while the discrepancies get sorted out. I make a living from people who have that charming mix of ignorance and chutzpah which causes them to hate a government and simultaneously believe that they are somehow exempt from the more unpleasant consequences of running afoul of the bureaucracy.

Oh, and when you do something really stupid, don't try to hire me or someone like me. Have your criminal tax defense attorney hire me so you have privilege. Otherwise anything you tell me or I figure out can be obtained by simple warrant.

 

[Intense]

Have any of you heard of it? The capital is the money in your bank account. The control is by the banks.

When the gov. in Cyprus needed money they helped themselves to a a nice chunk of everyone's bank accounts. The Eurogroup of 17 nations said that what happened in Cyprus would henceforth be the "template" for future governments everywhere. The FDIC and the Bank of England agreed to the new "rule" in Dec. 2012.
On 1/28 My Bank (Russia) implemented a complete ban on cash withdrawals by their customers for a week and beyond.
A man named Stephen Cotton in London went into his bank of 28 years to withdraw 7,000 pounds he owed his mother. The bank told him, "no".
They said he didn't provide them with a satisfactory explanation of what the money was for. Then they told him they wanted a letter from his mother! He asked for 6,000 then 5,000 then 4,000. They finally agreed to give him 3,000 pounds of his own money.

According to new banking laws, our deposits belong to the bank. According to HSBC, based in London, there is no requirement to pre-notify customers of this change in policy.

Chase has just limited cash withdrawals to $50,000 per statement cycle. And they will fine you for trying to take out any more than that. The controls apply to all business accounts, large or small. Mine is a small business account but I pay cash for whatever I buy to avoid paying interest. I can't do that now.

An Arizona businessman was refused a withdrawal of $17,000. in cash. He called the president of the bank and was denied the money. It wasn't until he demanded cashiers checks for all of his money in all of his accounts that the president agreed to give him his $17,000.

I thought capital control was suppose to control the amount of foreign money flowing into an out of a domestic economy or to stop a run on a bank.

Another "control" I just found out about was our electric. Due to an exceptionally cold January because of EPA controls this whole area was only 1,000 MW from our electric being cut off completely, in -15 below weather. According to our electric company, we should expect such shut downs to occur in 2015 and 16.

What is happening to this country?

Change.

 

[Mr. H.]

I've not made such sizable withdrawals, but have closed out accounts for the purpose of moving to a different bank. I do recall being asked a "reason" for the withdrawal. I didn't feel put out in the least.

In defense of banks (my bank, anyway), last year my email was compromised resulting in about $140k missing from our corporate accounts. The first thing the bank officer told me was that whether or not they recovered it on their end, every penny would be back in my accounts in 3 days. And it was.

 

[Intense]

There is a US Treasury rule which requires financial institutions to report transfers of $10k or more, but I am unaware of any rule requiring the depositor to give reasons for a transfer to either the institution or the Treasury. I often transfer amounts greater than $10k but do it in lesser increments over several transfers to not trigger the reporting thresholds. I have no idea if that actually frustrates the rules or not. I have always assumed the rules are to identify drug dealers and other miscreants.

There are exceptions to the reporting requirement. A good banker would see if any applied, or if some financial transaction other than an "unusual currency transaction" were possible before disbursing the money and reporting it to the Treasury. I have handled IRS audits triggered by the reporting requirement. If you want an exhaustive source & app audit, this is the best way to get it. Be sure to be able to identify the source of every bank deposit for the last six years and pray that each year your sources of funds match your uses of funds within 2%. Any discrepancy either way is considered unreported income. Oh, and if even one transaction is with a foreign account, be prepared to have all of your accounts frozen for a couple of years while the discrepancies get sorted out. I make a living from people who have that charming mix of ignorance and chutzpah which causes them to hate a government and simultaneously believe that they are somehow exempt from the more unpleasant consequences of running afoul of the bureaucracy.

Oh, and when you do something really stupid, don't try to hire me or someone like me. Have your criminal tax defense attorney hire me so you have privilege. Otherwise anything you tell me or I figure out can be obtained by simple warrant.

I'm just wondering what the punishment should be for Law Makers who sign unread Bills into Law? Should they first be stripped of all of their assets, before imprisonment? When the Laws are found unjust, how liable are they? To what measure are they accountable? What construct justifies the involuntary sacrifice of human liberty and freedom? If my property is not mine, then who's is it? Just a thought.... when the Laws are designed to snare the unsuspecting, to profit the Government as a result of the confusion created, what exactly does that say about the entity that created it? What kind of respect should it even deserve? When Government is the biggest bully on the block, that is not a good sign. It does not encourage trust or growth. Glad that found a way to profit off of the system, though.

 

[freedombecki]

The paperwork required of each bank manager to explain a withdrawal of $10,000 or more is a real burden.

For that reason when my local branch screws something up - like cashing a check for an amount other than that for which it was written (usually by a few cents) - I go in and make a cash withdrawal of $10,001.00. Enough that the branch manager had to do about an hour and forty-five minutes of paperwork.

Only once was she foolish enough ask why I had made the withdrawal.

Answer: "I need all ones because I need to light my lover's cigarettes oftener than I used to."

Baaaaaaaad!!!! But what are they gonna do?

I don't smoke, don't have a lover...

 

[oldfart]

There is a US Treasury rule which requires financial institutions to report transfers of $10k or more, but I am unaware of any rule requiring the depositor to give reasons for a transfer to either the institution or the Treasury. I often transfer amounts greater than $10k but do it in lesser increments over several transfers to not trigger the reporting thresholds. I have no idea if that actually frustrates the rules or not. I have always assumed the rules are to identify drug dealers and other miscreants.

There are exceptions to the reporting requirement. A good banker would see if any applied, or if some financial transaction other than an "unusual currency transaction" were possible before disbursing the money and reporting it to the Treasury. I have handled IRS audits triggered by the reporting requirement. If you want an exhaustive source & app audit, this is the best way to get it. Be sure to be able to identify the source of every bank deposit for the last six years and pray that each year your sources of funds match your uses of funds within 2%. Any discrepancy either way is considered unreported income. Oh, and if even one transaction is with a foreign account, be prepared to have all of your accounts frozen for a couple of years while the discrepancies get sorted out. I make a living from people who have that charming mix of ignorance and chutzpah which causes them to hate a government and simultaneously believe that they are somehow exempt from the more unpleasant consequences of running afoul of the bureaucracy.

Oh, and when you do something really stupid, don't try to hire me or someone like me. Have your criminal tax defense attorney hire me so you have privilege. Otherwise anything you tell me or I figure out can be obtained by simple warrant.

I'm just wondering what the punishment should be for Law Makers who sign unread Bills into Law? Should they first be stripped of all of their assets, before imprisonment? When the Laws are found unjust, how liable are they? To what measure are they accountable? What construct justifies the involuntary sacrifice of human liberty and freedom? If my property is not mine, then who's is it? Just a thought.... when the Laws are designed to snare the unsuspecting, to profit the Government as a result of the confusion created, what exactly does that say about the entity that created it? What kind of respect should it even deserve? When Government is the biggest bully on the block, that is not a good sign. It does not encourage trust or growth. Glad that found a way to profit off of the system, though.

The rules were put in place primarily to combat drug smuggling, gun running, and human trafficking. It just turned out to be a bonanza for tax enforcement. It's not exactly a state secret and every banker and accountant is familiar with it. What amazes me is the number of people who think that because they are not part of organized crime, the government automatically knows that and they get a pass. They don't. Prudent people don't just rail about the laws they don't like; they make the effort to not fit the profile of those who are being targeted.

I understand your indignation. I just hope you protect yourself rather than volunteer for victimhood.

 

[The Irish Ram]

My husband is in New Jersey working on my in-law's house. He puts the material on our Lowes card and then my father in law just takes money out of his Chase account and puts it in our Chase account so I can pay the bill. It saves my husband 15% on material.
All of a sudden, when my father-in-law went to put $500.00 in our account 3 days ago, the bank asked him what it was for and then told him no. They told him it looked like money laundering. They wanted him to buy a bank check and they would put $200.00 in our account and hold the rest. Hold it where, and for whom, and for how long?
He argued that it was his money and both accounts were with Chase banks, which means they see it coming from direct deposits from his SS and retirement checks and going right into another one of their accounts (ours) and then they have a record of what it is goes to pay for. They are already tracking it's every move. They relented but told him from now on, he could only deposit money into an account that has his name on it.

We have renters who for years have deposited their rent right into our account. I don't have to hunt for them, the money is there in my account, and they have a receipt for their deposit. It worked great until this month. They won't let them deposit the money anymore.

Just as search and seizure laws were suppose to be for Mexican drug cartels, I don't believe these rules have anything to do with drugs or guns or laundering. I think it is data mining and controlling as much as they can.

These aren't foreign accounts and my in-laws and we have been banking at the same local banks for years and years. The money he takes out is plainly from his direct deposit retirement check. They know that. He was the principal at the school where one of the tellers went. My high school homecoming queen is my banker.

Saying no you can't have your money is capital control. Our capital in their control. It is tighter restrictions on our money. I agree it's change. Bad policy change for us, good for banks. I was completely unaware of the changes until this month. I thought others might need to be made aware of it before they tell you, "no".

So long Chase, my money really isn't your money.

 

[DriftingSand]

Do you have a source for this. It sounds nuts.

I do know that the last time I tried to withdraw 10K the bank demanded a reason and then refused to give me MY money until I furnished one. Apparently the IRS has deemed it illegal for the bank to give me my own money without a furnished reason.

Wealth Reporter - The Golden Truth

 

[DriftingSand]

I believe we're going to have to find new ways to survive without banks being part of the equation. I know it sounds farfetched but I've been considering how a barter system can be created. These days, I'm leaving very little money in the bank. I'm paying my bills then taking most of the remaining cash out and putting it in my safe. I'm investing is tangible items (foods with long shelf life, ammunition, cartons of cigarettes [even though I don't smoke] and other, non-perishable items that could be traded) as well as some silver (the poor man's gold).

I believe we're going to have to find news ways to survive and likely off of the grid.