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How to Audit Advertising - Compliance Issues Here, There, Everywhere!;
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MLO v LO - Who Has to Do What?;
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#1863861 - 10/22/13 03:08 PM Large deposit every day but under $10,000.00
donna.raisor Offline
Platinum Poster

Registered: 09/21/04
Posts: 553
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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BSA/AML/CIP/OFAC
#1863862 - 10/22/13 03:11 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
manimal Offline
Diamond Poster

Registered: 02/26/08
Posts: 2206
Loc: Deleted
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 04:35 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 17444
Loc: Another trip around the sun
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 04:46 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
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 04:50 PM Re: Large deposit every day but under $10,000.00 [Re: rlcarey]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 17444
Loc: Another trip around the sun
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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The world is not a wish granting factory. Hazel Grace Lancaster

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#1863934 - 10/22/13 04:58 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
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 05:00 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
John Burnett Offline
10K Club

Registered: 10/27/00
Posts: 30717
Loc: Cape Cod
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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#1863956 - 10/22/13 05:35 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
Kathleen B Online

10K Club

Registered: 12/27/00
Posts: 17595
But have your knowledge of the customer and documentation as to how you acquired that knowledge to defend your decision it is not structuring.

After taking over BSA areas, I have reported structuring that had gone on for years, several deposits a week, every week, cash. SARs filed, customer counseled with brochure. IRS visited customer. Lo and behold, deposits shot up to much more than previously. A lot of investigation went to make our case to senior management that their "good customer" was structuring.


Edited by Kathleen B (10/22/13 05:37 PM)
Edit Reason: added info on investigation
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#1863958 - 10/22/13 05:37 PM Re: Large deposit every day but under $10,000.00 [Re: Kathleen B]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 17444
Loc: Another trip around the sun
We can all either keep stirring this pot or we can wait for Donna to clarify what's happening. I'm in favor of waiting. If you're opposed, just keep on speculating. wink
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#1863964 - 10/22/13 05:50 PM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
Kathleen B Online

10K Club

Registered: 12/27/00
Posts: 17595
No, but it is not inconceivable for this to be structuring just because it has been going on for some time. A good BSA program will ferret that out and have the steps to investigate (which might even mean site visits, announced and/or under cover, to see what goes on at the place of business, and take appropriate action.

I won't even bother to comment again regardless of what is said.
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Lending/CRA/HMDA/Mapping/Consulting
www.kaybeescomplianceinsights.com

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#1864053 - 10/23/13 09:39 AM Re: Large deposit every day but under $10,000.00 [Re: donna.raisor]
HappyGilmore Online
10K Club

Registered: 06/11/04
Posts: 17478
Loc: Moron, Mongolia
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 11:38 AM Re: Large deposit every day but under $10,000.00 [Re: HappyGilmore]
Retread Offline
Diamond Poster

Registered: 10/31/03
Posts: 2489
Loc: Southeast
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. Itís up to you to decide whether or not you want to find out.
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#1864181 - 10/23/13 11:55 AM Re: Large deposit every day but under $10,000.00 [Re: Retread]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 17444
Loc: Another trip around the sun
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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