why do Banks ask for income source for bitcoin sold payment - page 3.

gilangIDR

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Quote from: DeskJob on March 13, 2019, 12:32:06 PM

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.

Slark

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It all depends on your state and its attitude to cryptocurrency. If it was illegal there, the Bank had the right to freeze the account and demand an explanation. Unfortunately, this is a common practice of such behavior on the part of the state.

JeromeTash

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Heisenberg

They do that because of certain reasons such as money laundering and Bitcoin not being regulated yet is a soft ground for money laundering. Your Cousin should have known this before transferring the money to a bank account.

Another reason could probably be taxation. Maybe they want to find his source of income and know if he has been evading tax( this is speculation thou)

harizen

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Quote from: DeskJob on March 13, 2019, 12:32:06 PM

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 ?

The received amount triggers the alarm. How much we are talking here?

Usually if a bank account doesn't always have a regular transaction or in such case that all of a sudden it received a sudden decent money then they will asked for some clarifications. Knowing Singapore banks, they are strictly regulated and no way will just freeze an account for nothing.

Aside from that, the bank transaction was made via cross border so definitely it increase the impact to the freezing of the account.

Just be nice answering to them. Giving excuses might just turned into worst.

wuvdoll

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Cross border fiat transactions are always riskier as it may trigger the flags which are related to money laundering. I guess lawyers from Singapore may help you better still I do believe there would be decent number of Singapore people here but not sure about their knowledge on legal issues. Better ask your cousin to contact lawyers in Singapore.

exstasie

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Quote from: DeskJob on March 13, 2019, 12:32:06 PM

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 ?

In most cases, banks are firmly within their rights to freeze accounts where they suspect links to terrorism or other criminal activity. This is one of the dangers of selling BTC for international wire payments from strangers. It's possible the money your cousin received was stolen or otherwise connected to crime and your cousin has now been wrapped up in this mess.

The only course of action now is to document evidence that he was just innocently trading crypto, cooperate with the bank and the authorities in their investigation, and hope they clear him and release the funds.

avikz

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Quote from: DeskJob on March 13, 2019, 12:32:06 PM

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 ?

Under the Anti Money Laundering guideline, every country has set up a tolerance level based on transaction value. For example, in India every bank has a tolerance level of 1 million Indian Rupee. Anything above that amount automatically gets reported to the Government's AML committee. If the transaction value is not near to the usual volumes, bank can definitely ask for the source of the money and freeze the amount until they get a satisfactory answer.

I am sure, the amount of transaction is well above the tolerance level set up by the banks of Singapore and that's why they freezed the amount. Legal ways won't do much good. Rather try to prove the bank that the sold bitcoins were not obtained through illegal means. I believe bitcoin is legal in Singapore so if your cousin can prove that bitcoins are obtained through legal activities, you can expect some positive outcome!

OmegaStarScream

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If the transaction is between individuals and not with an exchange, how does the bank know that its related to bitcoin in the first place?

I suspect that the amount is too big here. Banks don't manually audit accounts, It's all automatic so whatever your cousin has been doing, it must've raised something.

They're probably covered when it comes to legalities. I don't think suing them would help. Why not just provide the source of income?

o_e_l_e_o

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Obviously something suspicious has been flagged up, and as such the bank have frozen that transaction. It is likely that they are concerned regarding money laundering, which is why they are asking for your cousin to produce proof of his income and other such details. Unfortunately, this will likely all have been spelt out in the terms and conditions of the account your cousin signed up for - banks are generally well within their rights to do this. Your cousin's first step should be to contact the bank and try to ascertain exactly why the transaction was frozen, but if it was for suspected money laundering, then they will not unfreeze it until he complies with their requests for more information.

As an aside, this is why we need crypto - so someone faceless entity can't seize your money without repercussion.

zhekinsp

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I think in Singapore they have regulations for crypto currency usage so if you don't have appropriate proof that where this crypto made from then you won't get your money back.

DeskJob

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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 ?

Topic: why do Banks ask for income source for bitcoin sold payment - page 3. (Read 399 times)