This post inspired by a reblog on Brittius about new $10 and $100 US bank notes.
Call me paranoid if you like but some banks round the world are asking 20 questions if you want to draw out your savings or any large amount of physical money and as an example:-
Customers of major UK high street banks who want to withdraw large amounts of money over the counter face stricter checks as to what they are planning to use their money for. This is Money revealed ten days ago that HSBC introduced new rules last November which allow staff to block a demand for cash unless customers can prove what they plan to do with it. It has now emerged that others including Santander, Barclays and Nationwide Building Society also now reserve the right for cashiers to request written proof in a move to combat fraud. [Link]
Only is this the real reason?
Hows about the one where the government don’t WANT you holding large amounts of money?
After all the phrase “BAIL IN” is appearing right round the world so you having a stash would be a way of NOT being caught by the government thieving.
I’m betting they won’t like you doing that, at all!
One of the other ways governments can use to control physical money is to declare an old design of a banknote as “obsolete” or “withdrawn from circulation”.
They then allow you to replace them if they are taken into a bank before a given date.
Only there is the rub and it concerns all you who have put a “Stash” away for emergencies.
Into the bank you’ll go, old banknotes in hand, yet there is a few things to think about:-
- You may need to identify yourself thus you create an audit trail.
- Be careful you don’t breech their floor limit for cash exchanges. The short wait and the tap on the shoulder could be trouble calling.
- You may have to justify the exchange of large amounts of cash.
- You may have to explain why you are holding of large amounts of physical money in the first place.
- Or you may have to pay them into a bank account before they can be exchanged. Then the tax man gets involved and you may have to explain to him why you are stuffing your mattress at home and not “declaring” your true wealth so he can take his cut. NOT NICE!
Basically though, they have got you.
If you don’t change them they will become worthless.
So if you do exchange them, just be careful not to become a “person of interest”.
Just saying. Food for thought sort of thing.