Depositing a fairly large check, and privacy concerns

Question

If someone deposits a large personal check (significantly more than their regular paycheck but less than $10k) into their personal checking account, is the bank allowed to ask any questions?  Is the customer required to answer?  Would there be any negative repercussions were the customer to refuse to answer?
It's nothing illegal, simply a gift from a family member.  The customer just happens to be very sensitive about maintaining their family's privacy.
If it matters, the deposit would be to a locally-owned bank in the US with which the customer has a long-standing relationship.

DJClayworth · Accepted Answer

It's extremely unlikely that the bank will ask questions.
First, most deposits are entirely automatic. The bank will not even notice the deposit.
Second, it's not that unusual that someone receives a payment of a few thousand dollars. They may have sold something or received a gift.
Third it's not the bank's business unless they think the payment may be fraudulent or illegal in some way.
Fourth, even if they ask you are under no obligation to answer.
It's a different story for international payments over $10,000, but your deposit won't attract any attention.
Since you say you are concerned about family privacy I should point out that the bank will have a record of who wrote the cheque, and if (for example) the police were to get a warrant to search your financial records they will discover who made the payment to you.

RonJohn · Answer

From an article titled Bank Secrecy Act - The $10,000 Rule

Under the $10,000 Rule, What Does "Cash" Mean?

Cash is of course U.S. coin or currency.  Cash also applies to currency of any other nation.  Cash can also be a cashier's check, money order, certified check, traveler's check or bank draft if:

It is for $10,000 or less AND it is received by the business
in a designated reporting transaction such as the sale of a durable consumer good like a car or boat or for travel and entertainment that has a price over $10,000.

These monetary instruments will also be considered cash if the business has actual knowledge that the payer is trying to avoid the reporting of the transaction.  That last is a sort of industry self policing requirement.

A personal check is not considered cash for purposes of Bank Secrecy Act Compliance.  A wire transfer is not considered cash under the Rule. So if you buy a $12,000 car and pay $4,000 cash and $8,000 by wire transfer, this would NOT be a reportable transaction because the wire transfer is not cash and the remaining 4k is less than the 10k cash threshold for reporting.

Depositing a fairly large check, and privacy concerns

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