How long money have to sit in a bank so it is not considered pass-through transaction?

[PinkCat]

I've been wiring USD from crypto exchange to crypto friendly bank, just to instantly (same day) make wires to other parties or my own accs in non-crypto friendly banks. Just today I was told that they don't allow "pass-through" transactions. Meaning receiving money with the bank and transferring them out right away or soon. So how long usually (i realize it might be different with each bank but even rough idea will help) you have to keep funds in the account before moving them away to not be considered pass-through?

p.s. just another hoop we crypto users have to jump through, I'm really hoping the times when crypto is widely considered ok are coming soon.

 

[diatessaron]

This one depends on the internal policy of the bank or FI you're using.

 

[Sols]

Ask the bank.

It's not necessarily just about time, but also what you do with the money.

USD in, sit for four months, and then wire out might be considered pass-through activity. All you did was introduce a time delay.

USD in, immediately convert to EUR, and then wire out might not be considered pass-through. You used a service in between.

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This is the probably the answer to your question.

 

[Alexmorgan]

diatessaron said:
This one depends on the internal policy of the bank or FI you're using.
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First one who brakes the Banks terms are the banks

 

[wellington]

Probably because say its 100 in and 100 out, if 100 in and 10 out and then 20 out then i doubt you'd have issues.

Basically they have all the compliance costs for serving you, but not the yield cost of holding your funds in short term T-Bills

 

[PinkCat]

yes it was like 100 in and 95 out but i've done 200 in and 199 out before and was fine, now out of the blue it is a problem 🙁

 

[Alexmorgan]

wellington said:
Probably because say its 100 in and 100 out, if 100 in and 10 out and then 20 out then i doubt you'd have issues.

Basically they have all the compliance costs for serving you, but not the yield cost of holding your funds in short term T-Bills
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Even with that its a problem with them

But to be honest 95% of businesses you get btween 5 to 10% of net revenue and the rest is cost

If they want companies with this business model they need to work with cartels only as 100m in it will stay there and it will double even more

 

[diatessaron]

Alexmorgan said:
First one who brakes the Banks terms are the banks
Click to expand...

Rules for thee but not for me.

@OP, withdraw less than what you deposit, always leave money in the account.

 

[void]

diatessaron said:
@OP, withdraw less than what you deposit, always leave money in the account.
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one of the golden rules to satisfy monkeys

 

[Martin Everson]

PinkCat said:
So how long usually (i realize it might be different with each bank but even rough idea will help) you have to keep funds in the account before moving them away to not be considered pass-through?
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As @Sols says it is 100% not a timeframe issue I can confirm. You need to do something of economic value to the bank. i.e time deposit etc. I have no idea which bank you are using but none of the banks I work with like this behavior because there is nothing of economic value to them taking place in the relationship unless they charge high fees.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Edge]

PinkCat said:
I've been wiring USD from crypto exchange to crypto friendly bank, just to instantly (same day) make wires to other parties or my own accs in non-crypto friendly banks. Just today I was told that they don't allow "pass-through" transactions. Meaning receiving money with the bank and transferring them out right away or soon. So how long usually (i realize it might be different with each bank but even rough idea will help) you have to keep funds in the account before moving them away to not be considered pass-through?
Click to expand...

I think your bank is just saying they need to make more money out of you, stop perusing and buy something kind of deal.

PinkCat said:
p.s. just another hoop we crypto users have to jump through, I'm really hoping the times when crypto is widely considered ok are coming soon.
Click to expand...

I'm pretty sure that time is coming very soon, looking at banks like xapo that is backed by money from endeavor, that blatantly convert EUR and GPB to USD immediately, offer stablecoin transactions etc ..

I think the US goverment has finally figured out that stablecoins and crypto in general is a new dumping ground for their treasuries, at least short term ..

Example (Paul Ryan)
https://archive.ph/20240716192153/h...l-currency-c491d717#selection-5885.27-5885.34

Last edited: Jul 31, 2024

 

[JackAlabama]

Edge said:
I think your bank is just saying they need to make more money out of you, stop perusing and buy something kind of deal.




I'm pretty sure that time is coming very soon, looking at banks like xapo that is backed by money from endeavor, that blatantly convert EUR and GPB to USD immediately, offer stablecoin transactions etc ..

I think the US goverment has finally figured out that stablecoins and crypto in general is a new dumping ground for their treasuries, at least short term ..

Example (Paul Ryan)
https://archive.ph/20240716192153/h...l-currency-c491d717#selection-5885.27-5885.34
Click to expand...

you mean the bitcoin dollar which is gonna be the new bretton woods style reserve currency?

PinkCat said:
yes it was like 100 in and 95 out but i've done 200 in and 199 out before and was fine, now out of the blue it is a problem 🙁
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you gotta just make em more money. They are our masters and free to abuse us financially.

if you reverse the role and but they dont like being treated like a cheap pump and dump playground.

so use some of their products like additional overly expensive cards, staking (aka fixed time deposit fiat deposit), fx conversion or leave some amount there at all times of which they can secretly clip away yield.
The worst form is to let them manage some of your money (such that they stuff it into their own subpar bank products which maximizes yield for them but minimizes yield for you), id only agree to this if they give me a compliance free pass (and go hassle someone else instead) Not everyone needs this tho.

Last edited: Aug 1, 2024

 

[Edge]

JackAlabama said:
you mean the bitcoin dollar which is gonna be the new bretton woods style reserve currency?
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I don't think anything BUT the dollar is allowed to be a reserve currency. And to be honest I don't know what would the plan be.

What I know is when interest rates start coming down, and we are in a similar situation to a couple of years ago when treasury auctions start looking a bit sus, somebody has to pick up the slack ..

Tether and Circle (usdc) combined own more than 100 billion in us bonds, that's saudi arabia level of holdings, I'm sure they would want that to continue going up. And now there is paypal usd too, and apparently algorithmic stablecoins like terra are going to be completely wiped out. You want a stablecoin, you buy our bonds.

Tether made 6B+ billion in profits last year, tell me that's not something some big banks won't get into. In comparison Citi made 9B last year ..

 

[JackAlabama]

Edge said:
I don't think anything BUT the dollar is allowed to be a reserve currency. And to be honest I don't know what would the plan be.

What I know is when interest rates start coming down, and we are in a similar situation to a couple of years ago when treasury auctions start looking a bit sus, somebody has to pick up the slack ..

Tether and Circle (usdc) combined own more than 100 billion in us bonds, that's saudi arabia level of holdings, I'm sure they would want that to continue going up. And now there is paypal usd too, and apparently algorithmic stablecoins like terra are going to be completely wiped out. You want a stablecoin, you buy our bonds.

Tether made 6B+ billion in profits last year, tell me that's not something some big banks won't get into. In comparison Citi made 9B last year ..
Click to expand...

basically the theory goes in short: the bitcoin dollar is similar to the petro dollar, but banks who want to hold it for 3d parties must offset a quota by holding usd cash/tbills to offset "vola". So it freely inflates but the more it inflates the more usd paper will need to be held by the system.

its just a means to further extend the empire.

 

[Martin Everson]

OK can we keep to topic here..thx

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.