PokéBase - Pokémon Q&A
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I got Pokemon Y for Christmas this year. Before that, I had been transferring Pokemon from my diamond/platinum to my white 2. I heard about Pokemon bank and how you can't transfer hacked Pokemon, which reminded me: My older cousin had used an action replay on my Pokemon platinum, giving me 999 master balls. My question is, am I able to transfer these Pokemon to Bank that I majorly caught with the hacked-in master balls? none of them (the Pokemon) have been hacked in or anything, just the Pokeballs. Also, could I use these Pokemon in regulation tournaments?

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Well according to recently sources Pokémon Bank apparently doesn't stop the majority of hacked Pokémon from getting transferred from B/W and B2/W2 to Pokémon X and Y.

It only stops Pokémon that have incorrect Abilities, Moves and Stats etc. This is what Pokémon Bank apparently considers to be hacked Pokémon:

http://www.tsanth.com/images/legal_legit_chart_v1.gif

Before you say anything there is evidence to support this since it has let Pokémon such as these be transferred:

Illegal Tepig

This Tepig is considered to be hacked since it's Thick Fat Hidden Ability hasn't been released yet.

Another one:

Illegal Totodile

Totodile in a Master Ball, Seriously?

Another one:

Illegal Shiny Torterra

This Torterra is Illegal because it has it's Hidden Ability and is Shiny.

Anyway by the evidence presented in these sources, I can safely say you should be able to transfer your Pokémon over with no problem.

Regarding your other question:

Yes. If you hacked your game to have 999 Master Balls, any Pokémon you catch in them will still be able to compete in Tournaments.

Source: Experience

I did the exact same thing on White to get 999 of every item, battle item and berry. I caught half of my Pokémon with the hacked Master Balls and was still able to compete in the Official Tournaments with them.

Overall Sources: http://tay.kotaku.com/pokebank-hilariously-fails-to-stop-hacked-pokemon-1489449874

http://nintendoeverything.com/pokemon-bank-doesnt-stop-hacked-pokemon/

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Thanks for the info. Had a little heart attack when I heard about the bank
At least I know what I can transfer :D
No problem, glad I could help :) I think it's a little relief for everyone Mew haha xD
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There is no way the game can detect that the Pokeballs themselves are hacked, so you should be fine. Even so, Pokebank (for Japan) allowed minorly hacked Pokemon to go through, so you should be fine in that regard.

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