CHARLOTTE, NC (FOX 46 WJZY) - They say “cash is king,” but maybe not anymore. Wells Fargo is just the latest bank to get rid of cash deposits if you don’t have an account with them.
The bank plans to implement the new policy in North Carolina and South Carolina on May 23.
“They don't want cash,” said Fort Mill resident, Alvaro Parra. “They don't want my mom's cash or my grandma's cash.”
Wells Fargo has pamphlets posted at the bank’s branches. It says the goal, with this new cash deposit policy, is to reduce criminal activity, and protect customers’ accounts.
Some argue, in an effort to cut down on money laundering, the bank is just hurting the little guy, like Mark Drenen’s daughter, who oftentimes deposits cash into her mom’s account.
“All the utilities are still in my name,” Drennen said. “so I make the payments and she puts the money in my account.”
Drennen told FOX 46, for people who use cash, the new policy makes it difficult to send money back and forth.
“You can't punish everybody just because you're trying to protect or keep the criminals from being bad,” she said.
Others don’t think the restrictions will work in reducing crime, like money laundering.
“No, not at all,” said Parra, “because you can also make transfers. How can you prevent money laundering if you can make transfers?”
Wells Fargo isn’t the only company to take the extreme measure. Bank of America, Chase and others took the plunge first. Under the Bank Security Act, financial institutions are supposed to do what they can to report and prevent money laundering, but they’re not required to precent non-account owners from depositing cash into others’ accounts.
“When you can't put US currency into a US bank account, there's something wrong with that,” Drennen said.