why do Banks ask for income source for bitcoin sold payment - page 2.

Oceat

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

You should let your cousin have at least read the rules and regulation of the bank about selling any cryptocurrency because the banks have the right to halt any process if the amount of the money is beyond to the expected minimum amount that a regular customer could take. And this is why the banks have to stop it because they are concerned about the AML law, that's why the banks have the right to ask your cousin that question.

If your cousin ever gonna produce a legal statement of his/her source of income, then there is no problem of taking that money but make sure that your cousin's source of income will match to the money that he/she's been taking.

Kiweikoo

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It totally depends on the rules and regulations put in place by the country against crypto currency, if there's a law against crypto in the country, then I don't think you would be able to sue the bank because I think they are operating based on the jurisdiction of the law and there is nothing you can do about it, but if there is no law in place against crypto currency, then he should go ahead and sue the bank. The banks is always against crypto because it is a big threat to them and they know this.

Aptekary

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Quote from: BitcoinTurk on March 16, 2019, 04:42:45 AM

If I didn't know anything about this, Singapore tried to set limits on transactions with some regulations. Considering the basic objectives of taking various measures, such as having tax targets and preventing illegal money transfers, we may think that some regulations are necessary. But there is a fact that this situation is contrary to the goals and objectives of Bitcoin, in short, its vision. Probably the money will be available again after the tax payments.

It seems to me that this would be expected, because the government of all states will sooner or later put up different demands on cryptocurrency users, including taxing their activities.

BitcoinTurk

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If I didn't know anything about this, Singapore tried to set limits on transactions with some regulations. Considering the basic objectives of taking various measures, such as having tax targets and preventing illegal money transfers, we may think that some regulations are necessary. But there is a fact that this situation is contrary to the goals and objectives of Bitcoin, in short, its vision. Probably the money will be available again after the tax payments.

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

Banks never freeze an account or a particular transaction unless it's an unusual activity. Either the amount must be too big or the transaction remarks would be showing it as a crypto related payment or something. Yes banks do have the ability to freeze that particular transaction because crypto would not be regularised or legalized in your country. There are many such countries whose bank do so in order to prevent black money turning into white. I know this because my someone I know has faced a similar situation in the past which lead to his bank account getting frozen.

qwertyup23

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We are talking about large amounts of money being transferred to banks and it makes them doubtful about the source due to possibilities of money laundering or any illegal activity. Another reason is for auditing purposes but the former is usually the reason on why they ask it. They must confirm all transactions as genuine since they may also be held liable for any future negligence on their part assuming that the source of funds were illegal.

Given that bitcoin is on its embryonic stage when it comes to acceptance and legalization among countries, they are still doubtful and skeptical as they follow what is written on the law. It also depends on the country where you stay at as some may be lenient towards these transactions and others ask for stringent requirements and measures.

raven7886

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This is exactly what we say about a centralized market, it is full of strictly policies, actually they have every right to freeze the account since they are operating under the rules and regulation of their central bank which must have stated certain limit of money an account can receive in a day without proof and anything above that must come with the proof that the source is genuine and legal.

The mistake he made was to have used one bank to receive the lump sum at once and since this has happened, all he need to do is meet his account manager and explained to the manager in details the source of the income, the manager will be best to advise him on way forward and letter required if there is any.

kaya11

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Just be transparent, any information that may lead to your crypto assets should only be known to yourself and even the banks should not have it. If they want some information then ask them if they are mandated to do so by the government- let them show some papers that truly it has to be a regulation by the government. If you are not so sure on what to do, then ask for help, a public attorney should do.

kidoseagle0312

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

That's the reason why I hate banks. Imagine We trust our money to them then they will hold our savings due to We need to submit our source of income, I tried actually to apply an open savings account here in my country then when I said that I'm a freelancer and crypto traders they declined me because they need a certification from the company or from the business if I am self-employed.

enhu

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Its not the first that had happen actually I have read some post in here which was far worse. I myself was asked by a local bank to present some documents about my source of income, luckily I have an online job for which I do in upwork. ITs going to be necessary for them specially if you unload huge amount of money which they don't normally see happening with your account.

el kaka22

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

Well, regulations in countries all vary from each other. For example its complete opposite in my country, if you send money from our country to our country like someone sitting right beside me sends me money they have to write an explanation of why they sent it, it could be absurd like "asdgasdgfasdf" and just send it and as long as it doesn't create red flags than it goes by, nobody checks all of it, only check the ones that raises red flags so most people write "other" or something like that there.

Nonetheless, if money comes to my account from another country it is literally allowed to get as much money as you want and it can't be questioned by law. You can send my account 2 billion dollars all at once (please do Cheesy

) nobody will ask me how I got it. So all countries have their own ways of regulating money transactions.

proTECH77

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All Banks comply with their Terms and Conditions especially when it come to AML. In my country for instance having upto to 10Millionaire in a single transaction or its equivalent in other currency will attract such individual to proof the income source or to tender taxation records from previous months or years of the account existence. Actually, its very safe to use exchanges if such huge money is involve but OP case is different, no legitimate proof from OP that will make the Bank release the funds.

Thanasis

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

When you are trusting a third party for transacting huge amount of money then these things will happen.

I think it is just a normal thing to freeze your bank account when they found abnormal transactions on our account and you agreed those terms while opening your bank account so only way to get your money back is provide the details what they were looking for.

emberbekas

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Quote from: maydna on March 13, 2019, 08:17:53 PM

Quote from: gilangIDR on March 13, 2019, 07:57:24 PM

Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

Usually large amounts of money will always be asked by each BANK, it is a procedure that is owned by each bank to avoid money laundry.
So in my calculation it is better for me to divide up some nominal money and it can make us comfortable in making transactions.

I guess the bank will not freeze one account if that account was not making a suspicious transaction. I am sure that his cousin receives large money so it will alarm the banks to investigate the account. Why not his cousin verify the transaction and tell the truth where he got that money so the bank can reopen his account? I guess the bank wants to clean up the money laundering and they are very concern with their customer. I think that is a legal solution for his cousin.

True, questioning the origin of the money we save in banks, especially in huge amounts, is a procedure that is applied in many countries. Provide evidence by way of asking for clarification from the sender of the money, the Thai person who bought bitcoin from the op's cousin, is a way that in my opinion will clear up the problem.

Noa_Amable

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

banks may require for anything.
if they can not prevent it at all they can try to delay receiving funds.
anyway, a reason could be the following: that guy who sent money to your cousin was a suspicious one and that's why bank stops the transfer.
the only way is to be honest with a bank if your cousin lies then sooner or later it will be revealed.
the best advice is to explain everything including negotiations about btc purchase deal (and attach dialogue screenshots).
just make it transparent for them

XCANA

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Quote from: DeskJob on March 14, 2019, 05:10:00 AM

thank you everyone for your responses, all advice's taken and will guide him accordingly.

if my cousin did bitcoin transaction without exchange to that person from Thailand then is there any sort of proof for that bitcoin transaction done with that person ? any sort of ledger or digital receipt perhaps that he can produce from that transaction so banks feels it genuine bitcoin transaction and not illegal money or money laundering.

my other concern is why do banks need to know how my cousin got those bitcoin and produce source of income for getting that bitcoin.

Any transaction done between two persons in respect to bitcoin to me has no proof of any sort, not even a ledger or digital receipt. Even though there is any sort, the bank will not see it as proof. Advise, kindly review the above forum members suggestions and find the most suitable one for a guild. Exchange base transactions are preferable to avoid such embarrassment from the Banks next time.

DeskJob

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thank you everyone for your responses, all advice's taken and will guide him accordingly.

if my cousin did bitcoin transaction without exchange to that person from Thailand then is there any sort of proof for that bitcoin transaction done with that person ? any sort of ledger or digital receipt perhaps that he can produce from that transaction so banks feels it genuine bitcoin transaction and not illegal money or money laundering.

my other concern is why do banks need to know how my cousin got those bitcoin and produce source of income for getting that bitcoin.

Jating

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Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

Just like what other posters have said, maybe something raised an alarm to the banks regarding the deposits that's why they have frozen yes. As far as I know they have the right to do it if anything suspicious regarding the originator or the receiver.

But I guess if you cooperate with banks and give them all the details then you can get back your money. No need to sue them, it will just complicate things. Talk to them and show proof that it's not a illegal or dirty money.

Natalim

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You have to ask them the reasons why they freeze your bank account.
My bank is crypto friendly so I cannot relate fully, if you have time, you can read some banking regulation regarding deposits and withdrawal transactions that involves crypto, if that money is clean, I believe they have no reason to hold that.

Maybe just comply with the bank requirement and be honest with every questions, hiring a lawyer to saw a bank is just making things complicated and for sure it's expensive, consider the amount as well, banks don't just freeze money without basis as their reputation is at stake and they might be penalize.

maydna

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Quote from: gilangIDR on March 13, 2019, 07:57:24 PM

Quote from: DeskJob on March 13, 2019, 11:32:06 AM

my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?

Usually large amounts of money will always be asked by each BANK, it is a procedure that is owned by each bank to avoid money laundry.
So in my calculation it is better for me to divide up some nominal money and it can make us comfortable in making transactions.

I guess the bank will not freeze one account if that account was not making a suspicious transaction. I am sure that his cousin receives large money so it will alarm the banks to investigate the account. Why not his cousin verify the transaction and tell the truth where he got that money so the bank can reopen his account? I guess the bank wants to clean up the money laundering and they are very concern with their customer. I think that is a legal solution for his cousin.

Topic: why do Banks ask for income source for bitcoin sold payment - page 2. (Read 418 times)