OK I know the answer to this question (I think) but need to verify for certain personnel in the bank. We have a loan customer that we have started foreclosure on, as they were writing NSF checks to make their loan payments. An employee of the bank has requested that we file a SAR, I say that if we file SAR's on people who write NSF items it is going to draw attention to our SAR reporting procedures. Please help

I dont understand what you mean. Who are you trying to keep from noticing your procedures?

What was the total amount of NSF checks written? If the total is under $5,000, then you would not have to file a SAR anyway. If the total is over $5,000, then I would probably file a SAR because it is such a big amount. However, I am making that statement on limited information.