Large Quantities Of Halves + Legal Troubles?

Patty,
If I do recall you had the same problem form bank of America. They stopped ordering your 28 boxes a week or something to that effect. I have been roll hunting for 10+ years and nothing frustrates me more than going into a bank to buy halfs and they tell me that they won't order them for me because of problems they have had in the past. I have been hearing that more and more over the last year. I feel this is the direct result of roll hunters being greedy and ruining it for everyone else. I have the money to order as much halfs as the central vault has but I choose to keep my orders small so someone else can enjoy the hobby.

It sounds to me like they are requiring that information because they are filing a suspicious activity report (SAR) per federal law. Money servicing businesses (banks) are required to file one when any one of several things occur. The one you are probably triggering is worded something like "serves no known business or apparent lawful purpose.

You can see a copy of the form and the instructions on the IRS website at http://www.irs.gov/businesses/small...4555,00.html and http://www.irs.gov/pub/irs-pdf/ffc109.pdf

Explaining to the bank what and why you are searching may or may not stop them from filing the forms. Asking them not to file the form though is actually a suspicious enough reason that they are required to file the form.

If you're dumping at a different bank than you pick up from - it's going to look like money laundering to them.

Lucky you. The banks around me never have any halves, and they will not order any for me :(

They should not take your info every week if you are an established customer. I assure you they are not reporting your info to IRS (SAR or CTR). Your transaction is not suspicious nor is it over $10,000+ cash in one business day. I used to be a bank teller in college and you are doing nothing wrong.

Do you conduct other business with this bank besides ordering half dollars on a weekly basis? Do you have accounts with this bank? If yes to both, then I don't see what the problem is. The teller may be getting hassle from the manager or may just be trying to inconvenience you enough to turn you away from ordering so many boxes. In my opinion, 8 boxes is not a lot at all.

I work in a bank currently and have frequent conversations with our central vault or money center. There is a newer employee there that used to work for Brinks and I have asked coin questions regarding supply. I was told the inventory they hold is huge for coins including halves, they must have enough available to accommodate any situation and halves rarely circulate, so there is always plenty there. If a bank runs low, they simply order more from the FED.

You should simply ask why they need your info every week, but be nice about it. Bringing in a box of donuts or gift card for coffee for the teller ordering is also a way to go. Those small extras make tellers feel appreciated and more likely to go out of the way for you.

interesting.

so you're saying that each bank has something like a set amt at the vault waiting to be used at a moments notice or something?

also, to whomever asked: yes, I have several accts. there.

Are the same tellers taking your info? Maybe you just aren't that memorable :)

To reply to a few statements/questions:

The inventory of coin varies from bank to bank. Some banks may have a few thousand dollars worth of halves while others may have $50,000 or more. Sometimes, a bank may ship the excess out but that costs a fee. Many times, banks will "trade" or transfer amongst themselves in order to meet demand. Think about the supply variables: location (city, rural or suburb), number of banks that have accounts at each armored car company, the number of armored car companies per city, region. There are probably a great deal of halves held in inventory, since they are the least used coin besides IKES. I did not get an exact $ amount, but my contact said they had a 'ton' in inventory.

As far as money laundering and govt reporting - while the $4k per week is a pattern, the bank knows how the funds are being used - they are being converted into half dollars. The source of the funds or where the funds are going are the two biggest concerns for the bank. The govt only knows what the bank reports to it. The opinion of the bank is that 'the less reported to the govt the better off they are.' The Patriot Act requires cash transactions totaling greater than $10,000 on any one business day to be reported through a CTR.

As far as ordering halves, all you need to do is ask the teller. It all depends on the teller - I've been in banks where the teller orders a few times and then gives you some excuse why they can't order anymore. Then I have gone to another branch of the same bank a few miles away and have had no problems with repeat orders. In my opinion, as long as you are nice and maybe bring an occasional treat, you should have no problems ordering what you want.

I hope this info helps.

As long as you do not break the law you should have no legal troubles. A few hoops maybe, but consider the extra precautions as a way to keep th3e IRS away later.