Bank Teller Told Me It Was Against The Law to Try and Swap Money from My Purse for Smaller Denominations!

tulip99 on 27/01/2022 - 14:57

Today I went to My State Bank and asked to swap 2 x $50 notes from my purse for 50 x $2 coins. The teller wanted my bank card and photo ID and when I said I had the cash in my purse, she said it was against the law and money laundering according to the anti-money laundering act to use the cash in my purse and I would have to make a withdrawal. I was shocked and told her I didn't have that much money in my account and I'd have to leave it.

Then I crossed the road and went to Westpac where I don't have an account and it was no problem, and I wasn't asked for ID or if I had an account there.

Is what she said true? I've never heard of that before.

The reason I wanted the $2 but didn't tell either of the tellers as it was my business, not theirs, is because of the Tik Tok money man and how some of the special $2 coins can be valuable.

https://www.tiktok.com/@thehistoryofmoney/video/704777404742…

Financial

Comments

                              • madrigal on 28/01/2022 - 18:33

                                @gromit: What absolute statement about the law did I make?

                                • gromit on 28/01/2022 - 19:27

                                  @madrigal: "I agree exchanging money is not money laundering.", when it comes to money laundering what is perfectly legal for one person can be a crime for another, hence you cannot make an absolute statement like that as it is entirely dependent on the context of the transaction.

        • entropysbane on 30/01/2022 - 11:02

          That can be the money laundering version of a sweatshop. You would be amazed at how small scale it can be.

          At bottom it is a classic example of regulatory overreach to solve a particular problem making it a pain for citizens.
          It is so annoying it can fuel conspiracy theories about what the government is really up to.

  • FareEvader on 27/01/2022 - 17:46
    +2

    Bank teller has no idea, sounds to me like she was lazy

    • Catullus on 27/01/2022 - 18:58
      -3

      In actual fact,"Legal Tender", is only 10 or 20 coins in a transaction, so maybe Tellers have learnt this and are wary of being caught out.

      • bobbified on 27/01/2022 - 19:08
        +1

        Someone doesn't have to accept anything more than x number of y coins as a form of payment, but it's a completely different story if you're asking for it. (If it was the case, businesses would never have enough change in their tills).

  • bobbified on 27/01/2022 - 19:05
    +4

    A stupid excuse like that from the bank teller is when you can demand to speak to the manager (nicely) without being called a "Karen". I've been through all the AML training at the big four banks and, yes, they try to hammer it in, but this was definitely not it. The teller needs to be retrained.

    • tulip99 on 27/01/2022 - 20:14
      -4

      Thanks. I'll ring the manager tomorrow and complain.

      • bobbified on 27/01/2022 - 20:16
        -1

        It's a bit late now. It just would've been good to see the look on the teller's face to be overruled!

      • burningrage on 29/01/2022 - 10:11
        +2

        Why are u being downvoted? I agree the CSO was wrong. I change notes to coins ALL the times and had no problem. Admitedly I did it at Westpac.

  • WookieMonster on 27/01/2022 - 19:35
    +5

    I'm assuming this was the MyState Rosny branch? The Westpac folks at Rosny have always been very friendly, so (if I got the location right) I'm not surprised they were more than happy to help you.

    I'm glad you didn't try your hand at the CommBank branch, because they probably would have tried to charge you an assisted withdrawal fee!

    EDIT: I was about to tell you to keep an eye out for the 2013 $2 coronation coin, as that is worth at least 15x face value, but I only just watched the linked TikTok video and saw what you meant lol.

    Btw, the other $2 coin worth keeping an eye out for is the 2012 $2 Remembrance Day coloured coin, but because it was a first generation of circulated coloured coins, the paint hasn't lasted as well as the coronation coin, plus I believe these coins were largely released through RSLs.

    Another tip: if you do a $4 cash withdrawal at Woolworths self-service checkouts, it will usually spit out 2x $2 coins. Something to keep in mind the next time you're shopping there.

    • tulip99 on 27/01/2022 - 19:41
      +2

      No, it was Kingston branch. Same for Westpac.

    • tulip99 on 27/01/2022 - 20:14
      +2

      Thanks for the Edit update :-) Do you mean the Lest We Forget coin? Because I've got that. I used to save the special $2 coins in my change, even when I didn't know if they were worth anything. And I think I have the Coronation coin from years ago but haven't gone through all the coins I saved when I was paying cash for things. Now I mostly use my debit card but I've gone back to paying for some things in cash.

      Thanks for the Woolies self serve tip. I'll try that :-)

      • WookieMonster on 27/01/2022 - 20:36
        +2

        I was referring to this coin.

        There was another $2 Remembrance Day coin minted around the same time with no colours, but it was minted in much larger numbers and released directly into circulation, so I don't think it is that valuable to collectors (unless you have an uncirculated one!). However, I found one from Woolworths from doing the cash withdrawal trick about a month ago, so there are probably still a few floating around in circulation…

        Speaking of Woolies, why are there two Woolies in Kingston a few hundreds metres apart? Is one better than the other?

  • tulip99 on 27/01/2022 - 20:42
    +3

    Oh. I don't have that red poppy one. I have a blue and orange Lest We Forget one.

    My friend says the Channel Court Woolies is better than the one on the hill. That's the one I usually go to if I'm in Kingston and I need Woolies, but I mainly go to Coles when I'm there. I love their Coles Irresistible ice cream, especially vanilla, and salted caramel.

    • WookieMonster on 27/01/2022 - 21:07
      +1

      If you look at the mintage for the 2018 Lest We Forget coin, I'd consider them a "cool" coin to collect, but not a coin I would collect if I wanted one to gain value, because so many were minted… unless you were trying to build a collection of all commemorative $2 coins (but that's my two cents… or two dollars).

      Btw, the page I linked to you does not include any of the coins exclusively released through Woolworths (e.g. any of the Olympic coins, the Mr Squiggle coins or The Wiggles coins), so it is not the be-all and end-all of $2 coins released into circulation in Australia.

      I probably also should have mentioned this in my first comment, but I think the teller at MyState was telling porkies!

  • baker bob on 27/01/2022 - 22:16
    +2

    AML / Terrorism funding requires you to transfer or deposit funds into accounts. Taking your $50 and converting it to coins is neither of these things. If we were in a movie, we could say you are converting those marked notes but I don't think we are in a movie, not sure

  • CalmLemons on 27/01/2022 - 22:36
    +4

    wtf is my state bank?

    Sounds like some fresh teller who was given the 1000 page guidelines on AML that banks were forced to make. It's ridiculous. No one is money laundering $100. Literally businesses deposit thousands of dollars in cash they aren't all money laundering.

    When you have a dry cleaner turning over $100 million, yeah, you might want to get suspicious.

    It is a bigger crime that public servants waste tax payers money on garbage projects.

  • Davo1111 on 27/01/2022 - 22:53
    +3

    They want to verify you're a customer not a walk-in, I don't see the issue.

    Btw, just because another bank does it without ID, doesn't mean the other should

  • p1 ama on 27/01/2022 - 23:16
    +2

    Just go elsewhere - if the Westpac is happy to do it for you then just go back there next time. Don't see the point of getting wound up over nothing.

  • CodeXD on 27/01/2022 - 23:18
    +13

    Cashier: that’ll be $19.99

    Me: pulls out a $50

    Cashier: sorry we’ve been having problems with counterfeit money… Have anything smaller?

    Me: Sure! pulls out a $30

  • BartholemewH on 28/01/2022 - 00:29

    Hello Pam.

  • Hangryuman on 28/01/2022 - 08:05
    +1

    I remember coins - I'm sure I used some - like 2 years ago

    for that matter I only started seeing $50 notes again recently - after 2 years of never using cash …

    'COVID is never having to say you're carrying cash'

  • Notanordinaryperson on 28/01/2022 - 08:24
    +6

    That's a load of crap from your bank. I worked as a teller for over 10 years and it was never a problem. People do market stalls, small businesses need petty change, picket money for grand kids. The list is endless. Money laundering normally involes large sums but under 10k to try to avoid aus track. You get a bit cluely when something dodgy is involved. Not $ 100 change. That bank is ridiculous

    • b0rnwithabeard on 28/01/2022 - 08:58
      +4

      but OP at the time was wearing a black beanie, black round eye mask, black and white striped skivvy with black pants while holding the money in a round bag that had a big dollar sign printed on it

    • tulip99 on 28/01/2022 - 09:32
      +1

      Thanks :-)

    • Davo1111 on 28/01/2022 - 12:04
      +1

      If a bank wants to verify you're a customer I don't see the issue.

  • DarkOz on 28/01/2022 - 08:37
    +3

    Even though I believed the teller, I am still shocked that she did that to you. Never had this happen to me and I used to get change like this daily. At worst the teller would ask to see your bank card as proof that you are a customer before giving you the change.

  • dust on 28/01/2022 - 08:54
    +1

    What on earth is going on in this thread?

  • b0rnwithabeard on 28/01/2022 - 08:57

    wait, you had $100 in your purse but you don’t have $100 in your bank account?

    i just can’t get over the reason why you did it in the first place. I’m sorry, but that’s super weird. You watched a tiktok video and thought you could make an extra what, $30 with a 1 in 50 chance? I mean we’re not exactly talking about a Mickey Mantle rookie card here

    • tulip99 on 28/01/2022 - 09:40
      +2

      It's not my main bank account. I thought it would be fun to go through the coins and see if I got a valuable one!

  • Traveller107 on 28/01/2022 - 09:27
    +8

    A decade ago I went to ANZ in Perth and was rather shocked by the tellers behaviour.
    The couple in front of me were speaking with the teller and the teller asked for the woman's anz card. This woman turned to her partner who was holding her handbag and fished out the card and handed to the teller. The teller looked angry and cut the card in half! When the shocked couple asked why she did that the teller said "Well your card was in someone else's possession. Next time have your card on yourself. A partner or spouse or whatever e is to you doesn't matter it is still is someone else's possession"!! The woman was in tears because of the humiliating way the teller had treated them. I had to call the manager who then apologised and took them away to serve them personally.
    Tellers can be really weird and some go on these petty powers trips it's incredible :P

  • cuteseal on 28/01/2022 - 09:27
    +2

    Oops, I did this last month for a garage sale (not $2 coins, but broke down big notes into smaller notes).
    * looks suspiciously over shoulders for the police *

  • baldur on 28/01/2022 - 09:33
    +3

    some australian customs, unwritten rules are really extremely shameless to consider the customers, clients as thieves so easily. It is very embarrassing but this is a sheep society anyway.

  • backpaqer on 28/01/2022 - 10:48
    +1

    Should have encouraged the teller to make sure to fill out a Suspicious Activity Report for every person who wants to use cash in these covid times :P

  • apple2016 on 28/01/2022 - 10:57

    The teller wanted my bank card and photo ID and when I said I had the cash in my purse, she said it was against the law and money laundering according to the anti-money laundering act to use the cash in my purse and I would have to make a withdrawal.

    Well you didn't offer him his kickbacks!

  • SuperMid on 28/01/2022 - 11:07
    -7

    I hate nosy bank tellers. I once transferred a large sum of money, she started asking if im saving for a house or basically what im using the funds for. Bitch, i dont have to tell you anything, im just using your bank to store my money, you dont need an explanation why.

    • gromit on 28/01/2022 - 11:35
      +6

      Yep you don't have to tell them anything, however they are trained to ask as to help identify people being scammed/defrauded. A simple question like that can save some people a fortune, I am sure being a nosy bitch was exactly what she had in mind rather than doing her job and looking out for people though.

    • MKBHD on 28/01/2022 - 12:01

      well, if that 'B*tch' successfully books a homeloan appointment for you, she gets a tiny portion of that commission. big banks also have a SLA for staff like her to meet homeloan quotas and are discussed as standups everyday after the branch closes. the bank front line staff don't earn much, it is very close to the base federal rate. every extra bits help. their job is also dying due to branch closures and online banking. she isn't interested about you like you think she is mate, she sees 10s of 100s of people like you every week.

    • Notanordinaryperson on 28/01/2022 - 12:16
      +4

      Wow what a harsh comment just because the teller was doing her job. Why call her bitch? We are trained to ask questions to help you with your banking needs. We can get you a better rate., work out what benefits you ect. Also we ask questions to protect you from fraud. The amount of people getting scammed out of their hard earned cash is scary. People fall it a lot.

    • lltravel on 28/01/2022 - 13:31
      -2

      i agree with this comment. They dont know need to know anything. Not sure why this was downvoted

      Its your money you can do as you please

      I once had a bank call me querying me why I was paying my body corporate and why I was buying things off Alibaba

      Like seriously? I refused to tell them what I was buying as it was none of their business
      10 days later i get a mail saying they no longer want me as a customer. Lol what a joke of a bank ( st george)

      To top it off the idiot on the phone didnt know what body corporate was. I cant believe they hire people like this to work for the banks.

      • SuperMid on 28/01/2022 - 17:18
        -1

        seems like the ozmorons here dont mind their privacy being invaded. Its my money, ill do what i want with it, i dont owe you an explanation as to why i have X amount of money or why im transferring it between accounts/to someone.

  • madrigal on 28/01/2022 - 12:16

    That is not money laundering. It doesn't change the source of the money. Money is fungible. The source of the income still remains unknown and would have to be justified.

  • [Deactivated] on 28/01/2022 - 12:45
    +1

    Banks have KYC (Know Your Customer) requirements under AML regulations. It's risk based, which is admittedly low considering the value of your transaction, however there could be any number of triggers - something as simple as an unusual request, an increase in similar transaction types, or the bank being made aware of low-value scams.

    At the end of the day it's due diligence on their part, and they (should) always err on the side of caution.

  • punter1 on 28/01/2022 - 12:58

    Well that bank teller is an idiot

  • 91rs on 28/01/2022 - 13:43
    +2

    Close your account with them and find another bank, when they ask you why tell them about it and the situation in branch.
    I've no time for people who tell me what I can or can't do with my money, especially over such trivial amounts.

  • OzHunterNSW on 28/01/2022 - 14:24
    +1

    What utter RUBBISH… call the Manager!
    Everyone can change money into any denomination they choose.

    How do people pay for car wash…. pay for parking… what a load of rubbish.

    As for showing I.D. you were not accessing your account… you are simply seeking change

  • Leeroy Jenkins on 28/01/2022 - 15:08

    Changing $100 to $100, and money laundering, sounds legit.

  • maximum on 28/01/2022 - 15:37
    +1

    I went to the cba today to swap $25 cash for coins for washing machines. No questions asked. I am a cba customer but didn't need to be. I guess literal laundering is an OK reason.

  • herecomestheoost on 28/01/2022 - 16:14
    +1

    I recently needed to withdraw 5k from the teller with The ANZ and although they were very friendly it ended up being a 30 minute transaction (I had also phoned the day before to let them know). The teller took me into the managers office where I had to explain to her why I needed the large amount of cash. She told me anything over 5k gets scrutinized now. She then tried to sell me house and contents insurance.

    • SuperMid on 28/01/2022 - 17:19
      +2

      So they were interrogating you as to why you wanted access to your own funds. Like my comments above, tell them to get stuffed and just give you your money, which they are only holding on your behalf.

    • UFO on 29/01/2022 - 13:24

      "I'm not answering any of your questions, here's my ID, I want to withdraw my money please".

  • tulip99 on 28/01/2022 - 19:06
    +2

    UPDATE: I rang the manager today and was told that it's a rule from head office and all the branches have to follow it. Good grief!

    • ntt on 29/01/2022 - 11:07
      +1

      change your bank

      • p3nf0ld on 29/01/2022 - 11:22

        change your bank

        Perfect. Exactly why the bank brought in the rule. They probably want to get rid of all the coin rats taking up the tellers time.
        Realistically if it were was worth the time then the banks would go through the coins themselves.

        • ntt on 29/01/2022 - 11:53

          I can go to any bank to change my coins, 2 years ago, no need to be a customer of them. Stupid reason. When an angry customer is gone, may be left with a million cash and some hundred of thousands loan interest and tell his/her friends not to use that bank too.

    • burningrage on 29/01/2022 - 12:14
      +1

      Bank rule does not equal law. Time to change bank.

  • ripoffmerchant on 28/01/2022 - 19:18
    +2

    MyState are hopeless. I’ve withdrawn money to buy a car before and the teller wouldn’t give it to me unless I told her what I was using it for (even though it was less than $10,000). On other occasions they wouldn’t give me my money until they gave me a spiel on their insurance. And in FY 2021 they decided not to pay a half yearly dividend despite being profitable.

    And of top of this my local branch no longer has an ATM and is only open 10-3 making it very difficult for me to go in and close my accounts.

    • capslock on 29/01/2022 - 07:05
      +3

      If the bank did not ask you what the money was for and you ended up giving it to a scammer, I bet you would blame the bank. Everyone who gets scammed always seems to blame the bank.

      So the bank doesn't really have a choice but to ask you what you will do with the cash.

  • mitt on 28/01/2022 - 19:41
    +4

    Its to get annoying coin rats to go away. It can be a legitimate reason to refuse to swap cash but most will do it for small amounts unless they have a particular issue with the coin pickers abusing the courtesy.

    Go look for special $2 coins somewhere else.

    Or deposit the cash, then withdraw it as coins. Go to a bank with a change machine.

    • Soluble on 29/01/2022 - 08:02
      +4

      Coin rats, good term! The local ones here clear out the coins every morning at around 7.30, then they come back the next day, deposit them in the atm change machine(which fills that up) and repeat.

      Makes it hard to get and deposit change as a business!

  • Sammy Boi on 29/01/2022 - 01:37
    +2

    I would've asked for the manager this sounds ridiculous.
    Money laundering $100 is the most ridiculous crap I've ever heard.

    • UFO on 29/01/2022 - 13:22
      +3

      bank teller is here negging you! :)

      here have a plus vote.

  • Matteo27 on 29/01/2022 - 07:54
    +2

    You got fed a load of BS with that one. This person should not be a teller

    • UFO on 29/01/2022 - 13:22
      +3

      bank teller is here negging you! :)

      here have a plus vote.

      • ntt on 29/01/2022 - 15:16
        +1

        balancer

      • Matteo27 on 29/01/2022 - 17:53
        +1

        Well thank you! No harm done. I’m not a banker but have worked in finance for about 13 years and AML training is a regular ongoing requirement. The teller made a “new guy” error glad I don’t bank with them!

  • AndyC1 on 29/01/2022 - 09:57
    +2

    BS. Money laundering rules are a bit complex, but do not come into play for small amounts. Banks need to notify AUSTRAC for transactions of more than $10K as this is teh that department that is supposed to check for suspect transactions that include money laundering.

    If you went in and wanted to change more than $100 then the back could check you have an account with them, but to say NO due to money laundering is technically defamation as the teller has accused you of money laundering and therefore you could sue the back.

    • tulip99 on 30/01/2022 - 10:25

      Thanks. I was annoyed about that aspect too.

  • nekro on 29/01/2022 - 11:58
    +1

    Best place to get coins is at car wash

  • UFO on 29/01/2022 - 13:21
    +2

    Go back to the same teller with mixed denominations of coins and notes totalling $99.90.

    Lets see if "money laundering" when the money is going IN to the bank.

    What a joke.

    • tulip99 on 30/01/2022 - 10:26

      LOL!

  • BuyoTheCat on 29/01/2022 - 15:25
    +1

    that is totally how money is laundered at Crown.

  • [Deactivated] on 29/01/2022 - 17:12
    +1

    Take it from a former coin collector, its not worth the hassle

  • TightLikeThisx on 29/01/2022 - 17:44

    It’s BS. They will just give that as a reason. They don’t like giving change to non verified customers for two reasons:
    1. Small businesses often ask for change at banks they aren’t a customer of just because they are physically closer. This ties up customer service resources.
    2. The older plastic notes can be forged quite well so there is a risk of loosing $100

  • BuyoTheCat on 29/01/2022 - 23:08
    +1

    The teller obviously does not think much of your criminals skills

  • Bec-a on 30/01/2022 - 11:01

    Not surprised.. My state bank is horrible to deal with, the phone customer service is also really bad.

  • couchy on 30/01/2022 - 13:29

    Absolutely nothing in AML/CTF that would require ID or any personal information for the small amount that was being changed. Banker really needs to work on their knowledge. (They do have the right to change an admin fee though for non-customers)

  • bettina44 on 30/01/2022 - 18:27
    +1

    Yep use to do it for fun, have sold a few in my time but don't expect to get rich from it.

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