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Question & Answer
Question: One of our long time employees made a withdrawal from her parent's passbook account by overriding the hold and making a no-book transaction.
She said it was with her parent's permission-though they have since been in requesting their money and closing their accounts. She also claims she accidentally got the wrong number-though the signature card is clearly marked.
She circumvented our system by using her number to approve the override, even though all employees know, from day one, that all overrides must be done by a supervisor or an officer. She has been here for years, and knows that.
She has paid the money back, but we have terminated her. We're not going to prosecute-we really have no reason to.
My question-should we complete and file a Suspicious Activity Report? Will our examiner be looking for it?
Answer: Leaving out a lot of words, the instructions on the Suspicious Activity Report and in your regulations say that"... whenever the financial institution detects a suspected criminal violation involving a transaction where the financial institution was a potential victim (if she had not paid back the money, you would have had to reimburse the parents) and can identify an employee as having committed or aided in the act, it must report that commission regardless of the amount involved." Your employee, unfortunately, fits all of that. Our contact in the federal agency said, "Yes, you should file the SAR." And, "Yes, your examiner should be looking for it."
Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 8, 7/97
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