(advertorial?  WTF?)

I notice the $5,000 motif that the other article has, and that has me thinking urban legend.

This article does not mention the form to fill out, however.

FWIW, I withdraw cash in amounts up to $2,000 with no problem at all all the time from the teller and ATM. (Daily max at the ATM is $1,000.)

Snopes, however, has nothing about this particular issue.

-- Modified on 12/4/2015 4:22:59 PM

Banks ARE required to have systems for monitoring and reporting suspicious activity. These reports are called SARS reports.  

SARS reports have been in place for a long time, and are NOT a new thing. However, given heightened focus on national security and recent bank mismanagement, they are being applied much much more aggressively by banks now. Large cash transactions are almost always considered suspicious these days.  

It also is not now, and has not historically been all that rare for a small branch bank to simply run out of cash on a very busy day. The bank has the authority to "limit" withdrawals and take other actions in such cases.

Given the above, you cannot be absolutely certain that when you walk up to a teller that you can simply withdraw all of your cash at that instant.  

As for whether we are in imminent danger of bank insolvency on a large scale... I doubt it

Can't really say if this is an article written in response to an actual event but if it is, the author may be confusing two different kinds of reports.

Banks are required to submit a Cash Transaction Report (CTR) for all cash transactions in the amount of $10,000 or more. This process is often automated and when it's not, the teller fills out a form and provides the customer with a copy. In my experience there's some small talk where they try to elicit the purpose of the transaction. I don't have any problem with banks in Las Vegas handling amounts up to $10,000 and when I go over (occasionally) we fill out the form and everyone is happy. It's part of the fabric of life in a city like Vegas. It's meant to limit or track money laundering efforts of organized crime, terrorists, and the like.

If, in the opinion of the teller or other bank officers, there is something suspicious about a transaction, they can then submit a Suspicious Activity Report as well, though there is no requirement to notify the customer of this reporting. SARs are also generated for lesser amounts when there is evidence to suggest that that a crime may have been committed.  

"Structuring" deposits so that you stay under the $10,000 limit for a CTR (multiple smaller deposits at several branches on the same day, or everyday at the same branch) are grounds for triggering an SAR.

CTRs are generated at casinos, too. If you've ever booked a large number of bets at a sports book (or even better, claimed large winnings) you can bet that you'll be asked for a players card or ID and a CTR is generated. Once they have you in the system and they recognize you as a regular player, a CTR can be generated without your knowledge.

CTRs go into a database and eventually die a lonely death unless an SAR appears and then they may become part of a larger investigation. For what it's worth, CTRs do not get shared with the IRS.

This is my understanding of the process and it fits well with my personal experience.