A bank refused to take a cash deposit of $980 for a third party account, claiming that this is illegal due to money laundering laws. Is this true?
The reality is that deposits by third parties, especially cash deposits, are often associated with some money laundering schemes. Although it's quite a leap to think "money laundering" based on a single $980 cash deposit, it might be in a bank employee's mind that money laundering is a reason that his or her bank has a policy against accepting such deposits.
It would seem that you will need to find another way to make the deposit. Perhaps purchasing a money order and depositing that would be a good choice.
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The reality is that deposits by third parties, especially cash deposits, are often associated with some money laundering schemes. Although it's quite a leap to think "money laundering" based on a single $980 cash deposit, it might be in a bank employee's mind that money laundering is a reason that his or her bank has a policy against accepting such deposits. 