Remember, the receipt of “cash” instruments for deposit does not automatically mean the remitter of the funds is participating in illegal activity. There are legitimate reasons the remitter may be making these types of deposits.

For example, if two different people are buying a property together and each deposits a cashier’s check in the amount of $8,000 for their portion of the purchase price from their separate accounts. Their remittance of these “cash” instruments is not because they are attempting to launder funds, but simply indicative of the fact they have separate bank accounts. 

Cashier’s checks, official checks, money orders, bank drafts or traveler’s checks, each with a value of $10,000 or less are considered “cash.”

Settlement agents are only required to report when multiple “cash” instruments have been received with a combined total of more than $10,000. Additional information may be obtained in IRS Publication 1544, which can be accessed at www.irs.gov 

Always adhere to the hard and fast rule of making only one disbursement per payee from a transaction and understand the reporting requirements are not proof a customer is involved in illegal activity. 

Settlement agents may have an obligation to report certain types of deposits. The information gathered from these reports is collected by law enforcement agencies and used to link the persons named in said reports with other suspicious or criminal activity. If you are still unclear about what is considered cash refer to the Company’s resources on this topic.

The information provided herein does not, and is not intended to, constitute legal advice; instead, all information, and content, in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Article provided by contributing author:
Diana Hoffman, Corporate Escrow Administrator
Fidelity National Title Group
National Escrow Administration