Can you have accounts at too many financial institutions? | General financial discussion | Discussion forum

Big Brother may be watching.
Apparently CIBC thinks that 7 is so many that it warrants investigation.
https://www.thestar.com/news/canada/2017/01/18/former-tire-recycling-exec-investigated-by-fintrac-over-suspicious-money-transactions.html

I know this article is about someone who may indeed be up to no good and that there were other peculiar activities here, but I am bothered by CIBC's assumption. I'm sure there are members of this site who have accounts at even more than 7 places, and they move it around regularly, just going about their business prudently as they see fit, which is not anybody else's business. If you don't want to invest in stocks, real estate etc. (or even if you do), CDIC limits practically force you to spread your money around through any number of institutions, depending on how much you have.

It gives me a bad feeling to think people are being looked upon with suspicion just because bank officials can't imagine why anyone would want a certain number of accounts. And no doubt we are paying for this service one way or another. They need more realistic criteria.

Last month, I took a bank draft from one bank (from closing an account) and walked across the street (literally) to another bank to deposit it. It was in the low five figures. The person in the second bank (TD) didn't want to cash it. He pointed to the upper left corner of the draft and said that it ought to be printed with my name and address (why MINE, I have no idea). I looked at him incredulously and repeated what I'd said before, that it was a BANK DRAFT, not a personal cheque, so it has the BANK's name and address in the upper left and, if he wanted, he could just phone them or even walk across the street to verify it, as my situation was well known over there. Finally, he went and asked someone else about it, and eventually agreed to deposit it into my account, but only after he'd also asked to see whatever else I had from originating bank. The only other thing I had was a slip verifying the transaction, which shouldn't have been needed by him. I am a very long term customer of both banks, over 30 years with one and 20 with the other. He ought to know what a bank draft looks like, and I would expect there is often traffic between those two banks. But if people like him are making mistakes and judgments like this, I have little hope of anyone avoiding being looked upon with suspicion by people who think 7 is too many. And where is the cut-off? 6? 5? 4? Do tell.