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My Euro based bank suggested me not to deposit too many dollars..

J

JJReddick

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May 4, 2021
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#1
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Ok so I have this bank account with a bank in Europe, where I am from, although I dont live there. I used it in the past to cash out trading gains and there has never been an issue. I am about to deposit a significant amount and - since they have added multi currency since the last time I used them for this purpose - I suggested that I'd deposit USD rather than EUR. My account manager dissuaded me from doing this as apparently US authorities tend to flag decently large holdings of USD if one does not live and work in US, nor is a US citizen.

Can anyone confirm?
 
#2
Yes, that is correct. All transactions in USD are subject to US federal law, regardless of where in the world the origin and destination of the transaction is. Large transactions will be reported to the US and even legitimate transactions undergo more scrutiny if they are conducted in USD than in other major currencies.
 
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#4
What's best is subjective.

Practically the same reporting requirements exist even if you bank domestically. US banks are a lot less careful when it comes to handling USD domestically than when overseas banks use them for correspondence banking in USD. So you might be getting fewer questions, although that depends on all other aspects of your profile.

Businesses transact in billions of USD daily with banks outside of the US. Most of those transactions run without issues.

But avoid USD entirely if you don't want to involve US regulations.
 
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#5
Sols said:
Yes, that is correct. All transactions in USD are subject to US federal law, regardless of where in the world the origin and destination of the transaction is. Large transactions will be reported to the US and even legitimate transactions undergo more scrutiny if they are conducted in USD than in other major currencies.
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I had no idea, thanks!
 
#6
Every USD transaction you do anywhere in the world passes through an intermediary USD account in the United States.

This means that if you wire USD from a French company to a German company, all the information is gathered and the money flows through an account with the Fed. US can freeze any such wire and start asking for hundreds of pages of documentation from the banks involved. In many cases it will be not profitable for the bank to spend the manhours to fill this paperwork and they may just close your account to avoid with the hassle. Remember banks need to make profits too and your $20-40 wire fee is not really that much.

This has been happening for at least 5 years.
 
#8
GeneralGogol said:
Every USD transaction you do anywhere in the world passes through an intermediary USD account in the United States.

This means that if you wire USD from a French company to a German company, all the information is gathered and the money flows through an account with the Fed. US can freeze any such wire and start asking for hundreds of pages of documentation from the banks involved. In many cases it will be not profitable for the bank to spend the manhours to fill this paperwork and they may just close your account to avoid with the hassle. Remember banks need to make profits too and your $20-40 wire fee is not really that much.

This has been happening for at least 5 years.
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seems like this is one more reason to avoid any fiat and banks and transact in crypto. (1) buy crypto locally on exchange (2) send from local exchange to another one in the target country (3) withdraw in the target country to the bank account as local currency, for business operations (4) profit!
 
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#9
JJReddick said:
Ok so I have this bank account with a bank in Europe, where I am from, although I dont live there. I used it in the past to cash out trading gains and there has never been an issue. I am about to deposit a significant amount and - since they have added multi currency since the last time I used them for this purpose - I suggested that I'd deposit USD rather than EUR. My account manager dissuaded me from doing this as apparently US authorities tend to flag decently large holdings of USD if one does not live and work in US, nor is a US citizen.

Can anyone confirm?
Click to expand...
Can you disclose the name of the bank?
 
#10
JJReddick said:
Ok so I have this bank account with a bank in Europe, where I am from, although I dont live there. I used it in the past to cash out trading gains and there has never been an issue. I am about to deposit a significant amount and - since they have added multi currency since the last time I used them for this purpose - I suggested that I'd deposit USD rather than EUR. My account manager dissuaded me from doing this as apparently US authorities tend to flag decently large holdings of USD if one does not live and work in US, nor is a US citizen.

Can anyone confirm?
Click to expand...
What's the problem with it? Millions of people in developing countries use the US-Dollar on a daily basis in small and large transfers without any problem. Hence, checks are on an acceptable level. Otherwise most USD-transactions in developing nations would not be fulfilled.
This seems to be typical European fearmongering, a bit like the useless EU-data protection laws.

Keep your money in a stable currency. USD and CHF are currencies that come to mind.
EUR is the opposite of stable - a weak hybrid fiat of an unstable artificial currency area (Eurozone = it is not a country, it does not even represent the EU itself).
 
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#11
backpacker said:
What's the problem with it? Millions of people in developing countries use the US-Dollar on a daily basis in small and large transfers without any problem. Hence, checks are on an acceptable level. Otherwise most USD-transactions in developing nations would not be fulfilled.
This seems to be typical European fearmongering, a bit like the useless EU-data protection laws.
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Usual nonsense from EU financial institutions, nothing new here.
backpacker said:
Keep your money in a stable currency. USD and CHF are currencies that come to mind.
EUR is the opposite of stable - a weak hybrid fiat of an unstable artificial currency area (Eurozone = it is not a country, it does not even represent the EU itself).
Click to expand...
USD is indeed very stable in its constant decline and unlimited printing.
 
#15
JackAlabama said:
There are plenty of signs in the air of changes underway, especially since 2022 february.
A strong usd is also not good at all for several reasons including the US.
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The argument of a strong USD not being good for the US is debatable.
Switzerland is doing quite well with a strong Swiss Franc, despite being an export dependent country.

I would say there is more good than harm for the US having a strong currency, both politically and economically:
They import a lot. They export mostly products where competition is not exactly fierce (agricultural, IT services).
 
#16
backpacker said:
The argument of a strong USD not being good for the US is debatable.
Switzerland is doing quite well with a strong Swiss Franc, despite being an export dependent country.

I would say there is more good than harm for the US having a strong currency, both politically and economically:
They import a lot. They export mostly products where competition is not exactly fierce (agricultural, IT services).
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Swiss franc is not the world reserve currency. So as a strong usd is good for the US at first sight due to your listed reasons, it is not for the world who get chocked by that and hence in turn will have to de-dollarize.
Switzerland has been in-officially pegged to the euro since like 10 years which has been a huge issue.

the whole situation might look different if there was no massive debt, but these high levels of debt are here.
 
#17
JackAlabama said:
Swiss franc is not the world reserve currency. So as a strong usd is good for the US at first sight due to your listed reasons, it is not for the world who get chocked by that and hence in turn will have to de-dollarize.
Switzerland has been in-officially pegged to the euro since like 10 years which has been a huge issue.

the whole situation might look different if there was no massive debt, but these high levels of debt are here.
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There is no alternative to the USD, hence nobody can de-dollarize.
The Euro is nothing serious, just an artificial joke to impoverish it's own population. And the Chinese are -with their current political and monetary system- in the same league like the Euro: Unacceptable and incapable of replacing the USD.

Moreover, do you really think oil exporting nations in the Middle East or the Chinese have a problem with a strong Dollar. The opposite istye case, they are more than happy with it.
The countries who are struggling under the strong Dollar are irrelevant when it comes to de-dollarization.
 
#18
backpacker said:
There is no alternative to the USD, hence nobody can de-dollarize.
The Euro is nothing serious, just an artificial joke to impoverish it's own population. And the Chinese are -with their current political and monetary system- in the same league like the Euro: Unacceptable and incapable of replacing the USD.

Moreover, do you really think oil exporting nations in the Middle East or the Chinese have a problem with a strong Dollar. The opposite istye case, they are more than happy with it.
The countries who are struggling under the strong Dollar are irrelevant when it comes to de-dollarization.
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Simply not true any more. 2022 changed this and de dollarizing is fully underway.
Take a look at recent developments and if you still can buy Russian oil for usd for example.
Of course they have issues with that as their usd loans get a lot more expensive to serve and banks facing liquidity issues (you can look it up, already happened with Henan bank).
I know its tough these days and what was true 6months ago, might not be valid now... ;)
 
#19
JackAlabama said:
Simply not true any more. 2022 changed this and de dollarizing is fully underway.
Take a look at recent developments and if you still can buy Russian oil for usd for example. I know its tough these days and what was true 6months ago, might not be valid now... ;)
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I can say the same for Iranian oil. Sorry, but that is event related and has nothing to do with de-dollarization.
 
#20
backpacker said:
I can say the same for Iranian oil. Sorry, but that is event related and has nothing to do with de-dollarization.
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No it is not event related. This is a trend developing. Iran was tiny to what happened in 2022.

You can be open and accept this trend or just deny the trend and live in the past...

Just keep on searching and you find many sources like that.
https://www.globaltimes.cn/page/202206/1268800.shtmlhttps://www.wsj.com/articles/saudi-...-of-dollars-for-chinese-oil-sales-11647351541
 
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