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#1957654 - 08/28/14 01:15 PM SAR/No SAR
A001 Offline
New Poster
Joined: Aug 2014
Posts: 14
New York
I’d like to get some other opinions on whether or not to file a SAR giving the following situations.
1. A Landscape business owner cashes checks weekly made out to his personal name against his personal account that have memos filled out stating business services such as “lawn Mowing” or invoice numbers.
2. A Chinese restaurant owner deposited $7,000.00 in cash over the course of the year into his business account and deposited $75,000.00 in cash into his personal account with no reflection from the business account.

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#1957676 - 08/28/14 02:05 PM Re: SAR/No SAR A001
MyBrainHurts Offline
Platinum Poster
Joined: Feb 2010
Posts: 960
Illinois
On #1, does he also have a business account, and is he a sole proprietor?

#2, yes, I'd file, because the activity is way out of the norm for the personal account.
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#1957686 - 08/28/14 02:11 PM Re: SAR/No SAR A001
A001 Offline
New Poster
Joined: Aug 2014
Posts: 14
New York
Yes, the lanscape company does have a business account set up as a corporation.

Thanks

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#1957813 - 08/28/14 04:08 PM Re: SAR/No SAR A001
MagicCity Offline

Power Poster
MagicCity
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
They are both indicative of tax evasion.
I would have a conversation with the customer and their response and subsequent activity would determine whether I file or not.

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#1957845 - 08/28/14 04:36 PM Re: SAR/No SAR MyBrainHurts
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Originally Posted By: MyBrainHurts

#2, yes, I'd file, because the activity is way out of the norm for the personal account.

I would pause on this, and try to understand if the customer is from a culture where this type of activity is normal. I wouldn't assume this is suspicious without first doing a little homework and seeking to understand my customer better.

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#1957856 - 08/28/14 04:49 PM Re: SAR/No SAR A001
Daisy Doodle Offline
Diamond Poster
Joined: Feb 2014
Posts: 1,030
Southern U.S.
On the landscaper, I would just advise him the bank's policy does not permit using a personal account for corporation business purposes. Then I would put a note on his account to divert him to a manager for more conversation the next time he comes in to do it (my experience is that they will test you). I would probably at least take the SAR to committee for consideration, depending on the amount over the last 6 months, for example. If your tellers are alert to this type of activity and the counseling happens early on, the activity would not meet threshold and filing would not be required. But most likely he's making payroll with the cash, and not paying his payroll and SS taxes.

On the restaurant, yes I would file. But I would also have the same conversation about business vs personal activity and also note the personal account to divert for more conversation if he deposits cash over some amount, maybe $1,000.00. The manager can then ask the purpose of the cash deposit and determine if the purpose is credible for consumer purpose. The customer will get the message if the bank is consistent.

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#1958061 - 08/29/14 12:30 PM Re: SAR/No SAR A001
banker1976 Offline
Gold Star
Joined: Nov 2005
Posts: 346
Mid-Atlantic
I wouldn't necessarily file on the landscaper. He is cashing checks payable to himself.

As for the Chinese restaurant and that owners personal account, upon further review of the personal account's transactions, it could warrant a SAR since he is using a personal account for apparent business purposes.
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#1958078 - 08/29/14 01:09 PM Re: SAR/No SAR A001
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Using a personal account for business purposes isn't illegal. You'll need to hang your SAR on something more substantial than that. Suspected tax evasion; transactions for which there isn't a reasonable explanation; etc.
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#1958109 - 08/29/14 01:54 PM Re: SAR/No SAR A001
A001 Offline
New Poster
Joined: Aug 2014
Posts: 14
New York
Thanks all!

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