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#2258118 - 08/12/21 01:13 PM Business Withdrawing Large sums of Cash
Anonymous
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New Contracting business (home builder) has been withdrawing $3,000 to $4,000 cash, every week since May. The owner is the conductor. Is this suspicious? How do you go about asking them for more info? I think it is, as I suspect they are paying employees with cash to get around the IRS.

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#2258120 - 08/12/21 01:28 PM Re: Business Withdrawing Large sums of Cash Anonymous
rlcarey Online
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rlcarey
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Galveston, TX
How about the next time he comes in to make a withdrawal you just say Hey Mr. Contractor, we noticed that you are withdrawing cash in an unusual amount for your business. Can you explain the purpose of these withdrawals as we would like to see if we have a service that we could offer to help, like payroll services, etc.
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#2258125 - 08/12/21 01:46 PM Re: Business Withdrawing Large sums of Cash rlcarey
Anonymous
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Excellent. Thanks!
But I'm still wondering if it's the Bank's business to know what they are doing with the cash. All we have is "that it's not normal business activity". And we have no evidence of any payroll from this account. It's the only account at our bank.

Thanks again!

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#2258132 - 08/12/21 03:07 PM Re: Business Withdrawing Large sums of Cash Anonymous
BrianC Offline
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Quote
But I'm still wondering if it's the Bank's business to know what they are doing with the cash.

Your obligations under the Bank Secrecy Act make it your business.
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#2258141 - 08/12/21 04:00 PM Re: Business Withdrawing Large sums of Cash Anonymous
Anonymous
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All we have is "that it's not normal business activity".

What makes you think that it's not normal business activity? Is the contractor buying lumber from a small business that gives a discount? Giving cash to his employees to fill up their gas tanks or buy lunches? What is their debit card activity?

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#2258143 - 08/12/21 04:25 PM Re: Business Withdrawing Large sums of Cash Anonymous
InFairness, CRCM Offline
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InFairness, CRCM
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USA
Originally Posted by Anonymous
Excellent. Thanks!
All we have is "that it's not normal business activity".

Back in the dark ages when I was a college student, I worked for a large international retail chain that paid its employees in cash each week. This typically came from the cash received from sales, but at least once a month, there was a a cash shortfall and we had to make large cash withdrawals to make payroll.

My sister continued to work for them until they filed for bankruptcy protection in 2018, and they continued to pay employees in cash until their stores closed.
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#2258147 - 08/12/21 04:45 PM Re: Business Withdrawing Large sums of Cash Anonymous
HappyGilmore Offline
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Pulling people out of the ditc...
a gajillion years ago i worked at K-Mart, they paid cash as well. dang inconvenient, for sure.

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But I'm still wondering if it's the Bank's business to know what they are doing with the cash. All we have is "that it's not normal business activity".

since you have deemed this as "not normal business activity", you need to have a conversation with the customer. imagine telling a regulator that you deemed this not normal and then took no action, and in fact they were doing something illegal. the issues that could present to your bank are scary.

there may be a perfectly legitimate reason for these actions, but the only one that can tell you that is the contractor. and they'll only do that if you ask.
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#2258161 - 08/12/21 07:41 PM Re: Business Withdrawing Large sums of Cash HappyGilmore
InFairness, CRCM Offline
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InFairness, CRCM
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USA
Originally Posted by HappyGilmore
a gajillion years ago i worked at K-Mart, they paid cash as well. dang inconvenient, for sure.

That's also where I worked that paid cash.
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#2258168 - 08/12/21 08:40 PM Re: Business Withdrawing Large sums of Cash Anonymous
Anonymous
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On what basis was this conceived as "not normal"?

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#2258172 - 08/12/21 08:59 PM Re: Business Withdrawing Large sums of Cash Anonymous
Andy_Z Offline
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Andy_Z
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Ask, and ask nicely because even though Brian is absolutely correct, your business customer probably won't think so and I wouldn't mention why you're suspicious at all.

I've referenced this here before, but we had a c-store that was taking cash every week. Seemed suspicious. We asked and the owner told us id was for her grocery truck. She'd given them a bad check and they put her on cash only for 6 months. We went back and verified the check - "nothing to see here folks - keep moving."
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