People often ask: I get a call from ANZ to obtain the source of funds/wealth information because I recently deposited a lump sum of cash in the Highland Park ATM. What happens if I do not provide the information?
That depends on how much cash you’re depositing, the source of the funds, and your bank’s AML (anti-money laundering) obligations.
Here is how it generally works in New Zealand:
Cash Transaction Reporting
If you deposit NZD $10,000 or more in physical cash (or equivalent in foreign currency) in a single transaction, or multiple smaller deposits that appear linked, your bank must file a Prescribed Transaction Report (PTR) with the FIU (Financial Intelligence Unit).
This doesn’t automatically mean wrongdoing, but it definitely triggers mandatory reporting.
Suspicious Activity Reporting
Even below the $10,000 threshold, you might still get caught by your bank if your deposit looks unusual compared to your normal activity (e.g. large, irregular, unexplained or broken into smaller deposits).
Your bank does not tell you if they file one and the bank may file a Suspicious Activity Report (SAR)
Bank Actions
If your deposit is consistent with your profile and you can explain the source (e.g., selling a car, savings kept at home, inheritance, business takings, gifts etc), the bank usually accepts it.
If the source is unclear, your bank may:
- Ask for supporting documents (e.g., sale agreement, payslips, invoice, receipt, giting documents).
- Delay availability of funds until satisfied.
In rare cases, freeze or close the account if they believe the funds are linked to crime.
How to avoid issues
- Be upfront: If you expect to deposit a large cash amount, give your bank advance notice.
Keep documentation: Proof of source (receipt, contract, cash withdrawal history, etc.) will usually resolve queries quickly.
Avoid structuring: Don’t split a large amount into smaller deposits to avoid the $10k threshold—that itself is a red flag.
If you have any concerns or questions regarding AML compliance, please don’t hesitate to contact us at info@fraudchecksolutions.co.nz
