Received Advice to Buy Multiple Cashier's Checks

Answered by:

Question:

I need to have a cashier's check to pay a legitimate debt and I was told by the girl in the bank to make 2 or 3 different checks under $10,000.00 and wait a few days between them. Why should or shouldn't do this and why did she tell me to wait a few days between them and how many days are a few?

Answer:

Answer by John Burnett: This is a really touchy subject. If your need is to purchase a cashier's check with cash to pay an obligation, my advice is to do it in one transaction unless the terms of the obligation call for installment payments.

Otherwise, breaking your transaction into pieces under $10,000 can have only one purpose - avoiding a legal requirement for the bank to report large currency transactions. For you to break your transaction down solely for that purpose could be considered "structuring," which is a federal criminal offense, and I strongly recommend against it.

I will add that a bank or bank employee who suggests such "structuring" could be found equally liable for criminal sanctions. If I became aware of the bank involved, I would make it my business to contact the bank and alert them to the possibility that an employee is placing the bank in considerable jeopardy by offering such a suggestion.

Answer:

Answer by Richard Insley: If these events actually occurred, the "girl at the bank" has committed an offense punishable by 20 years in a federal prison.

First published on BankersOnline.com 1/31/05