hollowmoose21 said:Here’s the breakdown.
To cut to the chase...
If you’re trying to open a new account or move more than $15,000—say, you're buying a car and aren't a customer at the bank you're using—and you refuse to provide ID or explain where the money's coming from, they have to turn you away. Plain and simple.
Even if you're already a long-term client, if you refuse to update your profile info, the bank doesn't necessarily have to dump you immediately. However, if you try to push through transactions over $35 without explaining the purpose, they’ll cut ties. And just like when a new user refuses to play ball, they’ll report it all to FinCEN. This is part of the new Anti-Money Laundering and Counter-Terrorism Financing directive released by the Federal Reserve this Monday, effective July 1st.
Basically, if banks can't verify updated info on an existing client, they don't strictly have to close the account, but they are supposed to re-evaluate the risk level and take steps to mitigate it until the data is updated.
One banker, who preferred to stay anonymous, mentioned that this grace period might last a few years, maybe until 2017. After that, you either tell them what they need to know or you get the boot.
"It’s not that banks actually want this much data; it’s that the law forces us to ask," one banker told us. "We aren't trying to be bureaucrats. Nowadays, when you open an account, they’ll ask if you’re a resident, your marital status, your spouse's income, where you work, how much you make, and how you plan to use the account—even things like whether you own property. Banks do this to calculate creditworthiness and comply with European Union directives for mortgage holders. Since last July, individuals and companies also have to declare their US tax status." He added that some clients fight the updates, claiming they don't need anonymous accounts since the bank knows who they are, and wondering why the bank needs to know so much anyway...