My mom usually asked me to receive her honoraries in my bank account, since it’s better for her to receive money there than in her account, which belongs to another bank. Today, our domestic worker (who’s cool with us anyways) asked me to temporally keep in my account a part of the money from an old property her family sold in their country, in order to go with her to our closest bank office to withdraw it later. I felt that it was a bad idea since i think that having your money with others’ in your account may lead to problems (sorry if I lack some ethical-financial experience). Anyways, I sent her my account number. Minutes after she went to her home, I suddenly changed my opinion and called her telling I declined the favor. And so I did with my mom. I told them that I could help them to create a new account in the same bank I did, however.
Besides my aversion to withdrawing other people’s cash in the moment they need to and when I need to mind other stuff, are there other reasons to say them No?
yes plenty of reasons. Tax reasons, fraud reasons (both yours and against you) when you give your account and routing number.
Edit: And legal reasons. Why would your family friend request you hold potentially (tens if not hundreds) of thousands of dollars for them? Unless they owed taxes and trying to avoid taxes, bankruptcy fraud or some kind of money laundering. Either way its a bad idea to let ppl process funds through your account, you could get flagged, your account could get closed and it could be difficult in the future to open a bank account. Why can’t your friend keep the money in their own accounts, its b/c they are doing shady things.
This is not wise nor an ideal situation they put you in OP. Typically if someone is having their deposits go into your account it is to avoid paying tax or not showing the actual balance in their personal account. The deposits could be withdrawn and you are responsible if it goes negative. Being the middle man is never wise when it comes to a financial transaction in this sense so I would stick to your gut and decline. Offer to have them set up their own accounts like you mentioned. I am not familiar with domestic worker terminology but I would also be cautious of legal implications.
The only funds in your account should be your own and if you have someone joint.
Yeah for the simple fact that anything that goes down in YOUR account is YOUr responsibility. If a check bounces, you have to pay. If money goes missing from your account, they figure that you must have given someone your debit card or something so still makes you responsible.
There’s a reason why they aren’t able to deposit these things into their own accounts and that should be reason enough for you to say no. You don’t want to ruin your good name and possibly even break the law unknowingly because of someone else. Most likely if they are asking to have money go to your account and not there’s, it’s because they know it’s not legitimate. And they are basically taking themselves out of the problem and still reaping the benefits.
Years ago when I worked at a bank, a girl came in once to withdraw $1000 from her savings. She only had a few dollars in the account. She started yelling that she had deposited $1000 of her friend’s money into her savings at the atm a month before, and was holding it for her because they were going away together the next morning. The bank must have done something wrong and she needed the money. We researched it, and saw a $1000 deposit into her checking a month before. Apparently, she didn’t have access to her savings account on her card, so selected checking at the machine but wrote “Savings” on the envelope, having no idea the whole process was automated and went by what you selected on the screen. The bigger problem was she apparently subscribed to the “Use my debit card until it gets declined” method of bookkeeping, and had managed to blow her friend’s $1000 in a month.
Moral of the story, don’t mix money and friends.