In the UK banks routinely demand from their customers detailed statements about "source of funds" if the customer makes a large deposit (over $100,000). The $10,000 Rule), and while that might seem like a big secret to you right now, it’s important to know about this law if you’re looking to make a large bank deposit over five figures. Large deposits of cash into a bank account can be a sign of criminal activity, according to the IRS. Gary Ashford, head of tax disputes at RSM Tenon, the accountants, says restaurants are a happy hunting ground because of the large number of small value cash transactions that are involved and regular changes of ownership. In general, banks must report … Under current laws Banks now have to disclose information on request to Police, the HMRC , the Department of Trade and Industry, and the Serious Fraud Office. They are obliged to report cash deposits of £10,000 + , numerous deposits which can be under £10,000, numerous withdrawals , large cash deposits in Night Safes. Deposits Of $10,000 Or More. As much as you like: the only proviso is that is consistent. I understood that the banks would report to HMRC the amount of interest paid and that HMRC would adjust my code for 2017/18 to recoup the tax due on the excess amount of interest. HMRC are aware of interest rates, so can make an educated guess. Here is an example: https://retiready.co.uk/ However, there are instances where banks are required to report transactions to the IRS. Banks will report deposits made in the form of cash, which can include bank drafts, traveler's checks, money orders and currency. A 1970 anti-money-laundering law known as the Bank Secrecy Act spells out the rules for large cash withdrawals. Banks are also required to inform you of any forms the IRS needs when you are making any qualifying transactions. “Where they do these reviews they are looking at … Yes, your UK bank may ask where the money came from and they WILL notify HMRC (Inland Revenue is a 20th centry name). Money Laundering Although these laws may seem strict, they exist for a reason. I received gross bank interest in tax year 2016/17 above the PSA tax-free limit of £1000 for a basic rate taxpayer. Banks are legally obliged to notify HMRC of interest paid, but not amount of capital held. I am not required to do a self-assessment tax return. Interesting warning: …if a customer reneges on their initial request to deposit or withdraw more than $10,000 in cash, and instead requests the same transaction for $9,999, the bank employee should deny such a request and continue the transaction as originally requested by filing a CTR. 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