Topic: Bank asking to provide additional details regarding my activity (Read 304 times)

I have faced same issues as well where my bank do ask me out on where those big transactions came from but luckily i do have some closest friends inside the bank
which do save me up and didnt ask further more.I just mentioned that it was some sort of loan payment and later on i do make up some dummy
business.Yes, it sounds illegal but you should be wise on how to protect yourself on possible issues later on.

What you said is right, if the user is from bitcoin illegal country it might generate them legal issues. Better is to inform the bank that those transactions were from friends for some reason. I encountered the same issue years back while I withdrew a big fund from my bank account. Further I mentioned it as a loan sanctioned amount for building house. Further they released the fund.

I think you can't tell that you are in crypto business because all we know that most of bank are against about crypto. Kindly inform them that you are in merchandising business and answer their follow up question as long as their question is not over your security privacy you can answer that. But if their ask your password or private keys you don't have to answer it.

Well you have nothing to hide if the source of fund is clean just comply with their request, banks only want you to verify the source of fund. The question is how much fund is involved, if it exceeds your limit or being flagged then definitely they will ask you a proper documentation regarding the funds.

They want to know if you are compliant to the bank, so your first assignment is to check if the bank is open to accept transactions coming from Cryptocurrency, if they do then, you can tell them these transactions since they'll understand how Cryptocurrency trading works.
If they not then you can look another bank to transact your business if you already have huge funds and want to have a good standing you need a good lawyer for advice on this. 

In 2018, I made a conclusion from my cryptocurrency wallet Ethereum to a bank card in the equivalent of $ 10,000.  I used certain exchange services, but in order to protect myself, I conducted exactly 5 transactions for $ 2,000.  Nobody demanded additional documents from me and an explanation about the origin of my funds, but nonetheless, I transferred all the funds to my bank card without any problems.  But so far I have come across certain banks that are beginning to demand a source of origin for these funds when it comes to large amounts of money.

Op already mentioned that he is from EU so he is in completely legal zone,only thing is he need to provide the details for the source of money if he done it in private manner and the source is from illegal activities then he is in danger.

I remember at the beginning of this year I was a big participator of trades deposits and withdrawals with a certain bank in my country. Some months later, I decided to withdraw my trading profits to invest in another project. The project I invested in performed very well and so last month i closed my trades and deposited my profits, I decided to continue trading and using the same bank. On taking my investment funds to the bank, I was subjected to a lot of questions by the officials asking questions about the source of my money and even questioning the legality of my businesses. This was frustrating coming from a bank that I had been saving with for the past few years. They didn't hold my funds or anything but this kind of questions are very frustrating, There was no other option but to change my bank account - as a long term trader deposits and withdrawals from cryptocurrency trading are minimal - but involves huge deposits and withdrawals - which are subject to review whether you doing normal businesses or trading cryptocurrencies.

Somehow the answers from other users also helped me.
I didnt know about those kind of things about legalities so it really helped.

Regarding your problem. It might just be precautionary measures since you are making a different transaction.
Since you are receiving from another entity it will not be normal.

They are used to receive an amount of deposits in your accounts by means of deposits when you go to their establishment and now you are receiving from another end.

Money laundering could be the issue. But if done right then it is legal.

This is how bank is and I think this is normal process. Crypto is perfectly legal here as well, but before you can open a bank account there's a lot of documentations and questions that you need to submit and answered. Even opening a local exchanges account, you need to go to a lot of KYC.

I have once questioned by a bank about the source of my funds and where it is coming from. I just answer them right away and tell the truth. If I were you I will be completely open with them, simply as that.

Well, if it's illegal to your country you should always hide it. They are asking you that question because they think that there are suspicious activities that are happening in your account, they might freeze your money inside the account. The government is very strict on money laudering that's why they ask further documents to prove that you are legitimately having good sources of money that you put in your bank account. If you will tell them about cryptocurrencies, I am very sure that they will contact the higher authorities to arrest you. So you need to be careful.

Since the country you are located in, crypto is completely legal, then you have nothing to worry about. You just have to come clean concerning your activities and don't go on the defensive that they have no right because they do and intact, they can suspend your account to carry out activities from it until you provide necessary explanation and mind you, you have accepted this as part of their terms and conditions before you start operating your account with them.

When you get out to this, since its the volume of transactions that led to your account being flagged, you might want to go the route of registering a company and try to formalise your activities because with that, you can operate in a corporate manner and volume of transactions won't be an issue at the same time documents to prove transactions such as invoices or receipts won't be a difficult tasks.

Did you receive fund from LBC buyers? if yes you should check all ID of your traders.

If crypto is legal in your country then what is wrong in telling bank. Just tell them you are engaged in trading of cryptocurrencies. If they are ok with it then no problem but if they raise questions and try to limit your account then you can always shift to other banks. In my country, public sector banks owned by government are bit conservative in respect of foreign remittances so my bank limited my account stating that I can no longer receive funds from outside my country. Then I shifted to private sector bank and everything running smoothly since then. But do check that you pay taxes on your incomes else you can land in big trouble.

I have a friend who get same experience. I think with cryptocurrency, sometime Bank will ask for detail if it is related to cryptocurrency. In my country, there are no rules. I mean bitcoin is not illegal, but not legal too. Only no regulation yet and my friend face that experience. From that time, for now i usually exchange my bitcoin to fiat on verified seller that it is personal and not company. That is why i look never get transaction from cryptocurrency business.

I didn't get it, I'm sorry

It is so contradicting, you just said

and then this

I assume you meant was OP is in a zone where trading cryptocurrency is legal but, he needs to provide the whole information regarding every transactions he have in his bank account history. I guess when he did that, the banks would stop sending him emails questioning how he earns money.

E D I T: correct me If I'm wrong

If your country legalizes crypto, don't be afraid to tell the truth. they won't accuse you, they just want to know what you do with that money and whether you make money or you launder money. Therefore, please give the most true testimony. Your worst case is just about tax, don't worry.

Since when banks collect taxes, a bank isn't a governmental institution!

@OP
You worry for nothing and @teosanru gave a hint. Since you mentioned you're from the EU, banks use algorithms to detect suspicious activities. In Europe, the threshold is about 5000€ during the last 30 days. Once your account is flagged the bank is supposed to do the first check and then supposed to report your bank account to the financial authorities, then it is up to them to make the necessary investigations. Some don't bother to do the first verification (since it's automated), in your case, your banker did it.

You don't have to lie, it never pays btw. On the opposite, if you are able to explain clearly what you are doing (and if you can also provide evidence) you have nothing to worry about. There are thousands of accounts reported in the EU but in the end, just a very very low percentage of the accounts are truly doing something shady. (99% are false reports).

Another point.
It is possible that your bank thinks you have commercial activity and as personal accounts are not allowed for that (banks hate it). They would like to be sure (in case they can sell a pro account). You can tell them it isn't a regular activity just an extra income, they will be fine.
If you use this account just to do your LBC stuff, it's easy for the bank to think you're running a business (No bills paid, no recurring payment, no card transactions etc)

This is interesting. The bank probably detected  suspicious  transactions in your account. If you think this is what it is about then provide them what they ask for, that is all!

You have nothing to fear If cryptocurrency is legal in your country. I think you should be completely open to them. Just make sure to record the most important things that'd transpire between you and the bank.

Although crypto is legal, money laundering is not. And banks use to have certain imposed limits over which they start asking about the provenience of the funds.
My assumption is that you did somewhat bigger trades and passed well over those amounts, hence the questions.

Another possibilities would be that the sender tries some sort of chargeback or is himself under an AML investigation.