Bank questions over source of deposit

Discussion in 'Loans & Mortgage Brokers' started by mike7575, 21st May, 2022.

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  1. mike7575

    mike7575 Well-Known Member

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    Hi there, I'd like to get a loan of around 775k. A lot of my deposit will be from the sale of crypto assets, most of which will be at a paper loss or neutral (I'm a returning expat, former non-tax resident and my cost base is higher). I because it's this financial year they aren't part of any tax returns and I won't need to pay CGT tax on them.

    Looking at comm bank for a mortgage.

    Will they have questions/concerns around this?
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if u can show the transactions, not an issue

    ta
    rolf
     
  3. mike7575

    mike7575 Well-Known Member

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    Thanks Rolf.

    Would that be both the purchase transaction and sales transaction?

    It gets messy when dealing with crypto across different exchanges etc.
     
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    What LVR?

    Also why CBA specifically ?
     
  5. mike7575

    mike7575 Well-Known Member

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    Common debt reducer for borrower with less than 6 months pay cheques.

    Open to any banks just want to get an idea of any obstacles around having a high % of deposit from recently sold crypto.
     
  6. mike7575

    mike7575 Well-Known Member

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    LVR of maybe 75-80%
     
  7. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Cba isn't the only lender that offers this policy

    Are you full time or part time
     
  8. mike7575

    mike7575 Well-Known Member

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    Full time but high % comms. Base is only 125k :(
     
  9. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Then cba shouldn't be your only option
     
  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    You won't need to demonstrate gen savings at this LVR - just transfer the cash into your bank account and produce an account summary showing current balanced/date/your name.

    Cheers

    Jamie
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I had a client with a large amount of money at a relatively young age. The bank was suspicious about it for some reason and asked questions. It was money from an inheritance and they wanted proof of this. I told them this was a bit of an invasive and inappropriate question. They claimed it was due to money laundering legislation but couldn't cite any authority for this. Client didn't mind and give a copy of the will, whereas I wanted to have resisted it further.
     
  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The process around AML reporting and collection of information are easily satisfied when proceeds from sale of other asset classes can be explained. No great proof. This is the way of the world. AML & CT laws puts some onus on all institutions to understand sources of wealth AND to report it if uncertain. Technically refusal isnt a explicit matter in those laws but may be a policy of the institution under those laws. The issue of bank policy came up with the NAB ATM deposit case recently. This could lead to AUSTRAC seeking further information from the accountholder. But the rules require policies in each institution and they can make it up as they play. Policies need not be public information. Most are not.

    Takes me back to working at a major bank in melbourne around 1990 and a call came in downstairs at branch to take three full suitcases of cash to pay for a multi million dollar bank bill investment. Few laws existed back then but bank policy was to establish nature of funds prior to deposit AND to report it to AUSTRAC without mention to the depositor. They had tried to circumvent bank policy and we decided we didnt want to be the breach and refused funds and instisted on cleared funds to settle. Person had been named in a royal commission interstate as operating illegal casinos in a few places and so Group Treasurer insisted it must be banked to a deposit account first. That way the branch got to report it for old AML laws. Months later bank bills were siezed from safe custody and subject to dispute. Unsure of outcome.

    When someone has a major lottery win they are given a letter as winning large sums can trigger many such issues and that letter helps. I saw such a letter for a client. He says he has to use it heaps.
     
  13. Properwin

    Properwin Well-Known Member

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    I've sold crypto, online businesses, domain names - as long as you have a paper trail, banks and funders have been fine. Declare everything at tax time. All good.
     
  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Typically people who had some major change in circumstance can show it and it often doesnt suddenly appear without explanation. eg employer share windfall, powerball, inheritance, life insurance etc.

    Some agencies find anomalies with wealth and will collectively work to identify why long before someone asks. Its how the plutus payroll players came onto the ATO radar. And they knew a lot about Melissa Caddick before they said hello. Buying certain assets and many bank accounts and companies with common addresses but little apparent personal income caught plutus out. By the time the door kickers arrived they had a complete map of what was going on and had accessed many records incl phones they tapped and cloned.

    The rule for lenders and banks these days is know your client.

    There is a major project going on in Australia with a major rise in organised crime suggesting GST tax fraud on social media platforms. Almost a ponzi scheme with people telling others its safe and asking for a cut. ATO have stopped 700+ cases from getting refunds. Hundreds of millions. I encountered a suspected one late last week and passed details to ATO. They wanted to setup many straw companies for others to use.
     
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  15. tomerayz

    tomerayz Well-Known Member

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    I work in the AML space and I gotta say..... the GST scheme you reference is much much larger than you suspect. 700 cases is a drop in the bucket from the amounts i've seen. I worry about how much the ATO will lose from this and they likely have no recourse to get it back in the near future.
     
    Last edited: 26th May, 2022
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