Looking for a sample letter to send to a customer advising them we're closing their account due to structuring (though we wouldn't say that in the letter). We're also closing due to excessive overdrafts. But was wondering if anyone had a sample letter referring to closing of the account related to the structuring portion.

We would just use the phrase "unsatisfactory account handling" in our letters and leave it at that. I learned a long time ago in those kind of letters: Be brief and to the point. The more you say, the more fodder you give them to argue.

The letter would read, "Effective Wednesday, March 25, 2009, we will be closing your account due to unsatisfactory account handling. Please discontinue writing checks and using your debit card immediately. If you do not close your account prior to that date, we will issue an official check for the balance remaining and mail it to the address listed on your account.

If you have any questions regarding the matter, you may contact me at (XXX)XXX-XXXX {bank's main phone number - never direct dial}."

Hope that helps.

This is verbiage I provided to my account officers (in a prior life):

[BANK NAME] has determined that we are no longer able to service your account [ENTER TYPE OF SERVICE, ACCOUNT, SAFE DEPOSIT BOX, ETC.]. We ask that you cease making deposits and writing checks on your account at this time to allow all outstanding items to clear. You may come by our office and close your account at any time on or before [CLOSING DATE], once all deposited items have been collected. Otherwise, the account will be closed by the bank on [CLOSING DATE] and you will be mailed an official check for the remaining balance in your account. Please remember that you remain responsible for returned deposit items even after the account has been closed.

Optional based on situation:
If you feel you need additional time to relocate your banking services, please give me a call at your earliest convenience to discuss the matter. You may reach me at... Thank you for your cooperation in this matter.

DIRECT DEPOSIT RECIPIENTS (allow at least 30 days and up to 60 if needed): We understand that it may take you additional time to relocate the direct deposit of your [ENTER TYPE OF DIRECT DEPOSIT SUCH AS SOCIAL SECURITY, RETIREMENT, ETC.]; therefore, we are allowing additional time to establish your direct deposit at another financial institution.

SAFE DEPOSIT BOX: Please return both keys to your safe deposit box when you come by to remove your contents and surrender the box. We will be happy to refund to you the amount of your box rent for this rental year.

MERCHANT SERVICES: We ask that you cease making deposits and writing checks at this time to allow for all outstanding items to clear. Since you have established electronic merchant services on your business checking account, we are allowing your account to remain open until [DATE]. This should allow you sufficient time to relocate your accounts and services to another financial institution.

We have a couple different letters we use for account closures. Below is one we would send for something like structuring.
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Our system has flagged your account indicating unusual activity. Unfortunately, because of this apparent activity, we will no longer be able to maintain this account relationship with you. Therefore, this letter serves as our notice to you that this account will be closed thirty (30) calendar days after the date of this letter. If you do not provide us with other instructions, a check for any remaining collected funds will be mailed to you.

We encourage you to make prompt arrangements elsewhere for your banking needs to avoid interruption of any preauthorized drafts or direct deposits to this account.

If we may assist you in dealing with these matters or if you have any questions, please call _________.
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This one is more generic and could work too.
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We have reviewed your banking relationship with our bank and have determined that it is one that is not mutually beneficial. Therefore, ______________ Bank will no longer be able to service your financial needs.

Please make arrangements to move your deposit relationship within thirty (30) calendar days from the date of this letter. An Official Check for the remaining balance will be mailed to the address of record for your account.

If this action will cause you any unusual problem or loss, please let us know if we may assist you in dealing with these matters.
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On either letter, it is rare that we would give the customer 30 calendar days before closing, in the case of any suspicious activity. 99% of the time, we change that to 10 calendar days.

Hope these help!

Removed per request by poster.

Wow - I would be very careful in potentially accusing anyone of illegal activity. I would just say "we are choosing to close your account via our rights in your depositor's contract" and leave it at that. Otherwise, I would highly recommend that your legal counsel draft the letter and indemnify the bank for any damages resulting from such a letter. I also do not believe that the new FinCEN brochure was designed to be used in any type of accusatory manner and is for educational purposes only.

*Disclaimer*

I appologize as I should have stated that we are in the process of working with our legal deparment & haven't sent a version of that letter yet ... I mainly posted to get feedback ...

*Questions*

The letter never mentions the words "illegal activity".

It states "activity through the account(s) that does not meet our banking standards."

The rest of the verbage was cut from FinCEN ... which we've gotten approval from our regulator and law enforcement to use the brochure.

If you're wanting to educate your customer who is just doing "ignorant" structuring & not wanting to close the account ... how else do you word the "unacceptable activity"?

You can't blind mail a customer the brochure without causing other problems ... & I didn't read the letter to be used in an accusatory manner in any way ... but then again - I know stuff in writing is not the same as being told in person ...


This leads me to believe a one on one meeting with the customer may be better than sending a letter at all? Thoughts?

Friday afternoon's a good time for opinions... I've said as much elsewhere and repeat myself only to encourage debate; bankers need to figure out how they are going to use this tool.

First, consider using it as a stand alone mailer without explanation or fanfare. FinCEN's work product is above criticism simply because it came from FinCEN. When it's accompanied by a letter it might sound like an accusation as it does to rlcarey. (Made me a bit squeamish too.)

Send it out as a statement stuffer for all cash intensive businesses or even all commercial customers. If you have adequate statement message capabilities you could probably reduce your expenses by simply making it an additional page in the customer's periodic statement once or twice a year. Keep track of your broadcasts.

If an individual customer is offended or annoyed, just explain that "Every business customer got one, we are trying to make certain our customers understand this is a legal requirement."

Opinions vary, but I don't believe that one on one "counseling" is the equivalent of assisting in structuring. (Actually, I think it is quite the opposite.)

Second, if I was going to make an explicit request that a customer consolidate his cash transactions I would provide a second copy during as a handout during that discussion. (Remember, he already got one with his statement last month.)

That formal request would be a preface for closing the account if the structuring continued. SAR filing is expensive. Moreover, I would have no intention of turning a blind eye to someone who now knows he is violating a criminal law.

I so much appreciate you Ken & rlcarey for your opinions & guidance on these forums. I know you must repeat yourselves frequently Your knowledge & suggestions are fabulous & I very much appreciate everything you do ...


I first attempted to use Ken's suggestion of a statement stuffer (or in our case we would do a statement message) ... but management felt it would "open a can of worms".


I'm thinking the route I may go is if the Manager/Officer of the account really wants the relationship to stay with our bank - they will make sure to give the customer the brochure in hopes that will get them to stop structuring.


I sometimes think I've become Superman (woman) & think I can save the world all at once all on my own ...