It will be interesting to see how well this works.

Chase Revamps Cash Deposit Rules

I'm curious if this process will be come a "best practice" within the next 5-10 years.

Agreed. I know of a number of small to medium institutions that require ID at an internally established amount, oftentimes $3,000. I know of a few that require ID for any amount of cash, just as Chase is proposing.

However, when a bank this size implements such a requirement it will impact the industry, one way or the other. Examiners will say, "If they can do it, you can do it."

While I understand that Chase is doing this to curb BSA/AML criticism (not actual BSA/AML issues, as BSA/AML bank decisions should be risk rated and this risk appears to be low unless they impose a minimum dollar figure), I can not image a community bank refusing to deposit cash from a non-depositor (possibly a family member) into an account because they are not signers on it.

It will be interesting to see how Chase communicates this mandate to its small business customers who send runners with deposits. In the past, banks have reported problems obtaining ID info from such people, some of whom have basically claimed the bank had no right to their identification. I think the key is getting the word out to the business people in advance of implementation, and then working with them toward compliance.

Based upon prior experiences with them I do not believe that it would matter to them if they loose a few accounts (until it affects the bottom line) as the majority of business customers will comply.

From my recent experiences at Chase, any customer who isn't a profitable customer will be exited if they complain too much or refuse to comply. It will be that simple.

And we all know that these types of stories in the press based on a conversation with an unnamed spokesperson from the company are rock solid on point

Their little notice states: "Please talk to us about alternative deposit options. We’re happy to help"

So are they assisting with structuring cash deposits now?

At least until they get caught...