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Why your bank thinks you're a terrorist
MSN ^ | 9-11-06

Posted on 09/11/2006 2:15:13 AM PDT by JOAT

Banks are reporting even slightly 'abnormal' transactions to comply with the law. The result: A deluge of reports, a lot of confusion and more government intrusion.

< SNIP >

It's called the Suspicious Activity Report, or SAR, and critics say it victimizes honest citizens who are conducting legitimate financial activities through legitimate banking channels, while generating a flood of useless paperwork and burdening financial institutions with billions of dollars in costs.

< SNIP >

In total, 919,230 SARs were filed in 2005. You cannot find out if one has been filed on you; anyone revealing that information is breaking the law.

What can trigger a SAR? Almost anything out of the ordinary that rouses the suspicion of the personnel where the transaction took place. According to their rules, any group of transactions totaling $5,000 or more that "is not the sort in which the particular customer would normally be expected to engage" can cause enough suspicion to create a SAR. The reports are filed with the Financial Crimes Enforcement Network (FinCEN), a division of the Department of the Treasury, and shared with law enforcement.

< SNIP >

Scared of paying off a debt

Unlike other government spying programs, this one is out in the open -- and it's creating fear among people doing ordinary banking activities. Take a recent college graduate from Columbus, Ohio, whose parents offered an interest-free loan to pay off his high-interest credit-card debt. While surfing online, a message-board post caught his attention.

< SNIP >

"They could report you to Homeland Security if payments deviate from the norm. It sounded scary and made me nervous. I think it's ludicrous that anyone should be afraid of paying off their debt."

(Excerpt) Read more at articles.moneycentral.msn.com ...


TOPICS: Miscellaneous
KEYWORDS: banking; bigbrother; counterterrorism; fifthanniversary; fincen; paranoiddopers; privacy; sars; september12era; spying
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To: Zon
Years ao, the Government and the Banking industry tried to cram through the "Know Your Customer" law to prevent money laudering (Drugs) and tax evasion.

That was shouted dwon when people found out about it.

Now, with the WOT, everyone finally got something worse.

21 posted on 09/11/2006 3:47:57 AM PDT by Gorzaloon
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To: goldstategop
Few people withdraw sums that large from their accounts.

Withdrawls of $5K are quite common. See 'em every day.

22 posted on 09/11/2006 3:48:23 AM PDT by gitmo (From now on, ending a sentence with a preposition is something up with which I will not put.)
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To: drlevy88
The Fed.Guv is getting swamped with these reports as banks cover their hineys with papers.

Meet Mr. Unintended Consequence.

23 posted on 09/11/2006 3:55:39 AM PDT by Lazamataz (Islam is a perversion of faith, a lie against human spirit, an obscenity shouted in the face of G_d)
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To: goldstategop

"Being rich in and of itself - is not a crime-yet."

There. Fixed it.


24 posted on 09/11/2006 4:08:17 AM PDT by mo
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To: JOAT

$10,000 has been a red flag for years to track money laundering.


25 posted on 09/11/2006 4:10:22 AM PDT by Wolfie
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To: JOAT

This article is full of B.S.!!! SAR's are not what this
POS reports them to be. Once again the DBM hit and run
smear is full of misinformation and half truths...


26 posted on 09/11/2006 4:11:43 AM PDT by sirchtruth (No one has the RIGHT not to be offended...)
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To: Wolfie

I believe it's down to $3,000. And I hope they do find the bad guys.


27 posted on 09/11/2006 4:14:13 AM PDT by durasell (!)
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To: martin_fierro

You and me both. I'm affiliated with the "Gang That Couldn't Pay Attention".


28 posted on 09/11/2006 4:23:49 AM PDT by Rte66
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To: JOAT
This article is a little hysterical.

The point of the Homeland Security Legislation is two fold; the first is to surface potential and actual money laundering. The second is to ensure that banks do not do business with people or groups or countries that are on a proscribed list (Iran being one).

The whole effort is to block the movement of cash between terrorist parties both outside and inside the U.S.

29 posted on 09/11/2006 4:35:50 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: goldstategop

We bought a new car out of town a couple of years ago, and paid cash. We had to take the certified checks in 5,000.00 increments and as far as I know there never was any problem whatsoever.


30 posted on 09/11/2006 4:37:39 AM PDT by Coldwater Creek
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To: Zon

Have something to hide, do you?


31 posted on 09/11/2006 4:38:25 AM PDT by OldFriend (I Pledge Allegiance to the Flag.....and My Heart to the Soldier Who Protects It.)
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To: Gorzaloon

I don't want to get your knickers in a twist......but KNOW YOUR CUSTOMER is alive and well.


32 posted on 09/11/2006 4:39:59 AM PDT by OldFriend (I Pledge Allegiance to the Flag.....and My Heart to the Soldier Who Protects It.)
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To: OldFriend
I don't want to get your knickers in a twist......but KNOW YOUR CUSTOMER is alive and well.

... And on steroids, now, apparantly.

33 posted on 09/11/2006 4:53:52 AM PDT by Gorzaloon
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To: Gorzaloon

Indded it is. Check out this application from the government website. YOU ARE A "SUSPECT" if you withdraw 5K from your account. Mind-blowing document. pdf file.

http://www.fdic.gov/formsdocuments/6710-06.pdf


34 posted on 09/11/2006 5:00:57 AM PDT by panaxanax
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To: panaxanax
If you consistently with draw funds in the range of $100 and suddenly begin withdrawing funds in the $5,000 range, the computer will note that you have exceeded your normal parameters and you will be checked, or scanned to see what's what.

There is a lot of data mining going on out there to find unusual banking activity.

35 posted on 09/11/2006 5:09:24 AM PDT by OldFriend (I Pledge Allegiance to the Flag.....and My Heart to the Soldier Who Protects It.)
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To: OldFriend

Yes. I have a private life. Bend over on govt command? No thanks. You can have it.


36 posted on 09/11/2006 5:14:20 AM PDT by Zon (Honesty outlives the lie, spin and deception -- It always has -- It always will.)
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To: panaxanax
Indded it is. Check out this application from the government website. YOU ARE A "SUSPECT" if you withdraw 5K from your account. Mind-blowing document. pdf file.

I don't see a box to check for "$xxxxx.xx commercial wire transfer transferred to Visa in 24 Hours", but if it makes them feel better.....

Can't say I like it much, but I have already paid witholding.

37 posted on 09/11/2006 5:37:17 AM PDT by Gorzaloon
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To: drlevy88
Until Uncle Sam comes up with some solid regulations to whittle the stream down at the bank end, if it's easiest and least risky financially for a bank to file, a bank WILL file.

There are regs with mandatory filing, but the government also leaves it up to the bank's discretion to file for any transaction that doesn't meet the mandatory filing requirements, but is still suspicious given the unique circumstances. Thus, the banks are probably playing CYA by reporting almost everything.

38 posted on 09/11/2006 7:10:53 AM PDT by antiRepublicrat
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To: JOAT

Anybody who doesn't like this, but supports the War on Drugs as it is being executed, prepare for some cognitive dissonance.


39 posted on 09/11/2006 7:14:25 AM PDT by antiRepublicrat
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To: martin_fierro

Well, terrorism can be surprisingly affordable. Let me show you some of our attractive financing plans... ;-)


40 posted on 09/16/2006 11:13:44 AM PDT by Still Thinking (Quis custodiet ipsos custodes?)
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