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#2024976 - 07/03/15 01:18 PM Structuring or not
Calmeida12 Offline
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We have a pro-athlete customer that appears to be structuring. We see that the incoming funds are legitimate from the team that he plays for. However, in a month period he'll take out $10,000 3 times just for spending cash. When questioned, he says that $10,000 is an even number that he feels comfortable with and he uses the cash whenever he travels from city to city. Does anyone else see this as a structuring pattern? The withdrawals are not done in consecutive days. For example: June 3rd, 9th and then the 30th. Thank you.

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#2025036 - 07/03/15 02:51 PM Re: Structuring or not Calmeida12
JacF Offline

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There's no exact formula for determining if multiple transactions are related enough to be considered structured, as this recent thread discusses. Your evaluation will necessarily be based on the dollar and frequency of the transactions, the customer's overall history, and what you come to believe about the customer's intentions based on all of the information available to you.

That said, your customer's statement that he prefers to have cash for his traveling is at least partially verifiable. You could check out the team's schedule to determine if there is a corellation between the timing of the withdrawals and the timing of the team's road trips. If you have longer history available, also consider if his activity changes during the off season.

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#2025158 - 07/03/15 06:21 PM Re: Structuring or not Calmeida12
KeepCalm Offline
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I agree with Jac. We have several high up executives at large companies who like to frequent the casinos. We use something along the lines of "occupation and lifestyle support high cash activity"

hope this helps
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#2025178 - 07/03/15 06:55 PM Re: Structuring or not Calmeida12
el guapo Offline
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If he is taking out $10,000 how is this structuring? He isn't trying to evade CTR reporting.

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#2025189 - 07/03/15 07:27 PM Re: Structuring or not el guapo
KeepCalm Offline
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10k out on the 3rd (it was a Wednesday) and 10k out on the following tuesday, totaling 20k in 6 days..I can see where the question of structuring arises.
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#2025192 - 07/03/15 07:42 PM Re: Structuring or not Calmeida12
bcompliance Offline
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10k is also below the reporting threshold...
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#2025196 - 07/03/15 07:50 PM Re: Structuring or not Calmeida12
NotDoneYet Offline
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But many people think the magic number is $10,000.
And do you really expect people to withdraw $10,001 so it doesn't look like they are doing anything wrong?

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#2025197 - 07/03/15 07:55 PM Re: Structuring or not Calmeida12
bcompliance Offline
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And do you really expect people to withdraw $10,001 so it doesn't look like they are doing anything wrong?

No. If they did that one time it is one thing. Two times in 6 days is a different story. Which is why I said its under the reporting threshold.
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#2025264 - 07/06/15 10:23 AM Re: Structuring or not Calmeida12
edAudit Offline
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You are here
However, two transactions slightly under the $10,000 threshold conducted days or weeks apart may not necessarily be structuring. For example, if a customer deposits $9,900 in currency on Monday and deposits $9,900 in currency on Wednesday, it should not be assumed that structuring has occurred. Instead, further review and research may be necessary to determine the nature of the transactions, prior account history, and other relevant customer information to assess whether the activity is suspicious. Even if structuring has not occurred, the bank should review the transactions for suspicious activity.

http://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_107.htm
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#2025271 - 07/06/15 12:37 PM Re: Structuring or not Calmeida12
rlcarey Online
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edAudit - I don't disagree, but you would be surprised how many examination crews would disagree with that statement.
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#2025273 - 07/06/15 12:40 PM Re: Structuring or not Calmeida12
edAudit Offline
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You are here
Actually after the last exam and the nonsense I am "fixing" nothing surprises me about examiners.
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#2025407 - 07/06/15 07:03 PM Re: Structuring or not Calmeida12
Princess Romeo Offline

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I seem to recall that George HW Bush had SARS filed on him for "structuring" his withdrawals. The fact that that came out in the news is disturbing on its own, but it goes to show you that you shouldn't assume anyone's status would give them more of a pass.

Hand him the brochure and see if he can figure it out for himself.
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#2025498 - 07/07/15 11:32 AM Re: Structuring or not Calmeida12
Elwood P. Dowd Offline
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Similar situation with a bank in a very wealthy area in Florida... Customer withdraws $5,000 to $7,000 every Friday. Examiner insists it's structuring. Banker says this customer spends that much money every weekend entertaining himself; e.g. he is the guy who gives the parking attendant a $100 bill to park the Testarossa and another when he brings it back unharmed. All deposits to the account are monthly trust distribution checks.

Bank is cited for failing to file a required SAR.

The lifestyles of the rich and famous can be incomprehensible to bank examiners. File a SAR, acknowledge that it is "defensive" and be done with it.

P.S. Cash deposits, not withdrawals, are more likely symptomatic of money laundering or otherwise illegal activity.
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