Our customer made loan payments on three successive days in the amount of $10,000 each. No CTRs were filed. I just caught this event yesterday. A SAR should be filed, but what about our employee who accepted the payments? This person is in a position to know better (long time bank employee). Per BSA it is a felony to structure or assist in structuring any transaction. Does this automatically fall into the category of assisting in structuring any transaction, or should we investigate? In other words, shoot first then ask questions later, or give the employee a chance to explain?

I would find out if the customer did this on their own or was it suggested by the employee - if suggested by the employee, then you have to file a SAR on the employee also. I would perform the interview before determining the extent of the SAR that will be necessary.

There's been enough information available for a long time (both on these boards and elsewhere) so that you should not leap to the conclusion that this borrower was guided by your employee. We already know there are a lot of people "out there" that know about CTRs and view them as unwarranted invasions of their privacy.

I would carefully interview your employee and other staff who might have overheard conversations between the employee and the borrower and then decide whether the employee was involved in the decision to structure.

It may be that the employee pulled out the CTR when the customer first tendered payment, and the transaction was "pulled back" to avoid the CTR, with the employee innocent of any wrongdoing. We know that happens with deposits; why not with loans?

John, if that were the case, the teller should have relied on their BSA training regarding "take back" transactions. Every teller in our institution has been trained on the neccessity for a SAR fiing on any transactions altered to avoid a CTR.

I'm not saying the teller is innocent. I am only suggesting alternate explanations for the outcome so that you don't assume anything without the facts. While it may be your duty to file a SAR, you have a concomitant duty to complete an investigation before filing. If, after your investigation, you believe the teller is still a suspect, by all means file.

You may already have done your investigation, but the initial post read like a "rush to judgment."

You are in the best position to know or learn the facts here. I just wanted to suggest that a hair trigger isn't always good to have.

$10,000 is a nice round number. However, on 3 consecutive days it's a bit much, especially if you don't know where the money came from. File on the customer.

As far as the employee, don't jump to conclusions about assisting the customer in structuring. You should ask the employee about the circumstances surrounding these transactions, before you make the decision to file a SAR on the employee.