If you make tens of millions of dollars in the cryptocurrency market, will the bank ask about the origin of your funds when you withdraw them?
In most cases, when a personal bank account receives a large transfer of funds — whether tens of millions or even smaller amounts — the bank will typically initiate an anti-money laundering (AML) investigation. When large sums of money reach your account, it’s common for the bank’s customer service department to contact you to verify the source and method by which the funds were obtained. If the bank finds any irregularities, your account may be temporarily frozen, and the case may be referred to other regulatory authorities for further review.
It’s important to note that bank monitoring doesn’t just apply to amounts in the tens of millions. Sometimes, even a transfer of a few hundred thousand dollars can trigger a review if the system flags it as suspicious. This may prompt the bank to call you to clarify the situation.
To minimize the risk of account freezing, many crypto traders have developed strategies. For example, they avoid using payroll or primary accounts for crypto trading, as a frozen account could disrupt mortgage payments, car loans, or damage their credit rating. Some also suggest not using cards from major banks, as their risk management tends to be more stringent. Instead, they can use funds from crypto sales to purchase financial products before converting them into cash. The idea is to avoid triggering heavy scrutiny from major financial institutions.
For those navigating this space, the goal is to manage withdrawals seamlessly and avoid unnecessary scrutiny. As always, we hope everyone in the crypto community can thrive in a bull market, achieve their financial goals, and stay ahead of any potential risks!