Simon Black brings us a disturbing warning about possible capital controls in America.
You tell the teller that you’d like to withdraw $5,000 from your account. She hesitates nervously and wants to know why.
You try to politely let her know that that’s none of the bank’s business as it’s your money.
The teller disappears for a few minutes, leaving you waiting.
When she returns she tells you that you can collect your money in a few days as they don’t have it on hand at the moment.
Slightly irritated because of the inconvenience, you head home.
But as you pull into your driveway later there’s an unexpected surprise waiting for you: two police officers would like to have a word with you about your intended withdrawal earlier . . .
. . .
Federal regulations in the Land of the Free REQUIRE banks to file ‘suspicious activity reports’ or SARs on their customers. And it’s not optional.
Banks have minimum quotas of SARs they need to fill out and submit to the federal government.
If they don’t file enough SARs, they can be fined. They can lose their banking charter. And yes, bank executives and directors can even be imprisoned for noncompliance.
. . .
According to the handbook for the Federal Financial Institution Examination Council, banks are required to file a SAR with respect to:
“Transactions conducted or attempted by, at, or through the bank (or an affiliate) and aggregating $5,000 or more…”
It’s utterly obscene. According to the Justice Department, going to the bank and withdrawing $5,000 should potentially prompt a banker to rat you out to the police.
There’s something else about this that I want to point out, though: this may be a very early form of capital controls in the Land of the Free.
There's more at the link.
Note that money deemed suspicious can be seized under asset forfeiture rules without any criminal conviction, leaving you to fight in court (at great legal expense) to get your money back. It's a well-known tactic by Federal, State and local jurisdictions. Even airport travelers are now being targeted. It treats normal precautions such as keeping a store of ready cash on hand (which I've recommended before) as suspicious or even criminal activity - which is ludicrous.
Land of the Free, indeed!