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#1863861 - 10/22/13 07:08 PM
Large deposit every day but under $10,000.00
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Platinum Poster
Joined: Sep 2004
Posts: 554
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Customer is coming and depositing $7,000.00 and $8,000.00 in cash every other day in the past week. What steps should we take? It just seems suspicious?
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#1863862 - 10/22/13 07:11 PM
Re: Large deposit every day but under $10,000.00
donna.raisor
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Joined: Feb 2008
Posts: 2,207
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Do you have SAR investigation procedures? If so I would be conducting an investigation to determine if a SAR is warranted. It could be structuring.
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#1863917 - 10/22/13 08:35 PM
Re: Large deposit every day but under $10,000.00
donna.raisor
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The topic says "every" day, the post says "every other day." I might be interested if the former were true, but not the latter.
"Structuring" to avoid a CTR filing intimates that at some point the customer had more than $10,000 in currency.
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#1863927 - 10/22/13 08:46 PM
Re: Large deposit every day but under $10,000.00
donna.raisor
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Joined: Jul 2001
Posts: 83,227
Galveston, TX
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Ken - I am confused. So, if I make such deposits and they are not made every day, I am not structuring???
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#1863931 - 10/22/13 08:50 PM
Re: Large deposit every day but under $10,000.00
rlcarey
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Sorry, I don't understand the question. My company only makes deposits every other day. We don't have any cash, but even if we did and it totaled less than 10K every other day, it would not be structuring.
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#1863934 - 10/22/13 08:58 PM
Re: Large deposit every day but under $10,000.00
donna.raisor
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Joined: Jul 2001
Posts: 83,227
Galveston, TX
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I agree if that was the case, but the original poster said this was in the "past week". I guess I would assume that this is a new cash pattern for the customer (they did not say individual or business) hence their question.
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#1863935 - 10/22/13 09:00 PM
Re: Large deposit every day but under $10,000.00
donna.raisor
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Posts: 40,086
Cape Cod
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Structuring is planning or altering cash deposit amounts in order to avoid the filing of a CTR (that's admittedly oversimplified, but suits this case). If you knew or believed that the cash intake history of the business is such that it ought to have more than $10,000 on, say, Mondays, but deliberately breaks the weekend cash down so part of it gets deposited on Monday and part on Wednesday only to avoid depositing more than $10,000 at once, you would have a good argument for structuring. But if the business is actually depositing every other day and not taking any action to avoid CTR filings, I see no argument for structuring.
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#1864053 - 10/23/13 01:39 PM
Re: Large deposit every day but under $10,000.00
donna.raisor
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Pulling people out of the ditc...
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The fact that the origianl poster thinks this may be suspicious warrants further research on her end to look at deposit patterns, business type, discussion with customer, etc. I'm not a fan of defensive filings, although i know many banks choose to do it as it is easier than doing their BSA work, but again, that is a decision the original poster and/or her bank will need to make based on their level of comfort with the customer and/or their desire to perform review.
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#1864161 - 10/23/13 03:38 PM
Re: Large deposit every day but under $10,000.00
HappyGilmore
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Power Poster
Joined: Oct 2003
Posts: 2,548
Southeast
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Just wanted to throw in my two cents worth. There are many things that look like they might be structuring, but have a logical explanation. I have learned that through about 35 years of dealing with BSA. Two situations I remember very well involved one client bank that had a customer that owned several gas stations. One of them made cash deposits sometimes three or four times a day, almost always exceeding $10,000 every day. A CTR was filed each time since the bank chose not to exempt the customer. It definitely looked like structuring, but upon investigation it was determined (1) the station was in an area where most of the customers paid cash and (2) that same area had a high crime rate and the station manager was afraid to keep much cash on the premises so he took the cash to the bank several times a day. Another client bank had a customer that made routine deposits of exactly $8,000 in cash, sometimes two or three times a week. The customer explained that his insurance would only cover him for up to $10,000 in cash on his premises so when his cash got to $10,000, he deposited $8,000 to keep within the insurance coverage and still keep enough cash on hand to operate. The idea is that you can file a SAR for what looks like attempted structuring, or you can investigate the reason for the unusual deposits and document it. It can be very difficult sometimes to determine if a customer keeps their cash deposits just below $10,000 in cash with intent to avoid a CTR or if there is another reason for the unusual deposits that is legitimate. It’s up to you to decide whether or not you want to find out.
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#1864181 - 10/23/13 03:55 PM
Re: Large deposit every day but under $10,000.00
Retread
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Anecdote supplied by an IRS/CID agent at LaBA School: Customer is making multiple cash deposits at different branches on the same day. In the aggregate, they are generally between $25,000 and $30,000. Bank files SAR. IRS sends "Notice of Law Letter" warning customer about structuring. Customer continues pattern of deposits. Bank files more SARs. IRS goes to call on customer.
The customer acknowledges the activity and the letter and says he couldn't care less if CTR's are filed.
Turns out the bank has a policy of requiring customers to use an armored car service if a cash deposit exceeds $25,000. Customer doesn't want to pay an armored car service so he breaks down his deposit. IRS/CID believes him. Me too.
I acknowledge that's not really relevant to the original question asked, but it's another example of how the unusual handling of cash can be perceived as structuring. Examples of how the garden variety presence of cash can suggest structuring are a bit harder for me to conjure up.
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