Why is Citibank suddenly being nosy?

July 1, 2015 6:16 PM

I have a Citibank credit card and I make payments in cash at a local branch (this is my preferred method of payment because I get paid mostly in cash). I do not have a Citibank checking account. Today the teller told me that from now on, anyone making a cash payment must show their driver's license and provide their SSN, phone number, home address, and occupation. Why?

It feels intrusive and weird that they're demanding all this information (especially the occupation part). What are they doing with it? Are they trying to catch/deter tax evasion or money laundering or something? (If so, this doesn't seem very effective because you can still make cash payments at the ATM without giving this information.) Is this some kind of new law that all banks must follow, or just a change in Citibank policy?

posted by désoeuvrée to Work & Money (15 answers total)

I've had to start showing my drivers license at BMO Harris bank when I deposit cash, but that's all they ask for. I asked about it and all the manager told me was that its to prevent money laundering and was Bernie Madoff's fault.
posted by TurquoiseZebra at 6:19 PM on July 1, 2015 [2 favorites]

I don't know what they want it for, but they recently wanted the same information from me when I asked to swap a $20 for two rolls of quarters. A different bank across the street was perfectly happy to do it, so I don't think it's new law.
posted by dorque at 6:19 PM on July 1, 2015

I wonder if they're trying to discourage cash transactions in person, because it's more expensive for them.
posted by J. Wilson at 6:34 PM on July 1, 2015 [10 favorites]

My renters usually deposit cash into my checking account at my credit union and they recently started requiring a lot more info. I wonder if a law changed.
posted by rabbitrabbit at 6:58 PM on July 1, 2015

here's an article about Chase implementing a similar policy.
posted by bunderful at 6:59 PM on July 1, 2015

And here's a more in-depth article about why. (PDF)
posted by bunderful at 7:05 PM on July 1, 2015 [2 favorites]

It's to do with their monitoring for money laundering. Banks look for patterns in cash transactions, and can use your D/L and SSN to track you internally and look for troubling patterns.
posted by ersatzkat at 7:12 PM on July 1, 2015 [1 favorite]

Oh, and not a law - just a new or strengthened policy.
posted by ersatzkat at 7:15 PM on July 1, 2015 [2 favorites]

I would be willing to bet it has to do with money laundering, especially when they ask for your profession.
posted by easter queen at 8:35 PM on July 1, 2015

But Bunderful's article says they should be fine with driver's license, since you have an account with the bank. According to it, they mostly want to track people making cash deposits into accounts that aren't theirs. What your bank is asking seems excessive.
posted by telepanda at 8:42 PM on July 1, 2015 [1 favorite]

Yes, it is money laundering they are concerned about. Specifically they want to deter "funnel accounts." A crime boss has a problem in that he collects cash from lots of underlings but needs to funnel it into a legitimate bank account so he can spend it on cars, houses and other property which are typically purchased by check. So he has his cash collectors each deposit small amounts of cash in his funnel account. By checking your ID before depositing cash, the bank can verify that you really are the owner of the account and not just a funneler.

This is all part of the Patriot Act of 2001 which established "Know Your Customer" regulations for the banks. These regulations continue to evolve and the bank is probably just being extra cautious with questions about your occupation. Just give them what they want. They don't really care and are just checking off the boxes to avoid sanctions by regulators.
posted by JackFlash at 12:15 AM on July 2, 2015 [1 favorite]

Citibank will also prevent you from making too many credit card payments during a payment cycle - same thing - cycling cash/funds through a credit card to pay a balance is definitely a flag for money laundering.
posted by ersatzkat at 9:38 AM on July 2, 2015

Just anecdotally - someone I know works at a bank, in the regulatory compliance department. He's said that in the last year the regulators are coming down very hard on them about money-laundering regulations, overhauling their procedures, scrutinizing their records, coming back to check that things are being implemented, etc. So possibly it's an industry-wide thing, and happening to Citibank too, and it's making them finally comply with some stuff they were previously lax about.
posted by LobsterMitten at 10:38 AM on July 2, 2015

Chase told me recently that i can't make cash deposits without an ID and bank card and that no one else can deposit cash into my account!!
posted by Conrad-Casserole at 8:13 PM on July 2, 2015

Keep in mind that these restrictions apply to cash transactions, that is physical dollar bills and coins. They do not apply to checks and other electronic transactions. The reason is that cash is untraceable while electronic transactions leave a record of who and where the money came from and who and where it went to.

So anyone can make deposits into your bank account or pay your credit card bill as long as they deposit by check.
posted by JackFlash at 11:56 AM on July 3, 2015 [1 favorite]