We have a customer who writes checks from his account at our bank (Bank A) and deposits them at Bank B. The account is overdrawn every morning. He then wires money from Bank B back to Bank A to cover the overdraft. The account is not being used as a business operating account. Each day the amount
involved gets larger. How should we address this? Is there a specific Regulation we can site for closing the account?
We have a customer who we suspect is kiting. We are considering closing the
account and writing the customer a letter stating that the account is being
closed. Our question is what can say to the customer to explain why we are
closing the account?
We have a customer that is suspected of check kiting, but the total dollar amount involved is less than $5000.00. Should I still file a SAR?
I am wondering if the following situation is considered kiting. A customer works for local grocery store. The customer writes checks to the grocery store and cashes them, then brings the cash to deposit into her account to cover check written the day before.
Is there any type of hold (beyond 2 days) a bank can use when our concern is what if the check comes back and the customer has spent the funds, we would have no way to retrieve any of the funds other than legal action. Would it be wrong to select other and note questioning if the funds will be paid?
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
How long can we place a hold on an account for a redeposited local check over $5000? We suspect kiting. Is there any way to impose a hold that exceeds 7 days?
I seem to remember reading that there is a dollar threshold for requiring a SAR regarding check kiting. Is that true and if so, what is the amount?
We have a procedure to review unusual activity in employee's accounts on a regular basis. In addition, if we have a suspicion regarding a teller, we have reviewed account activity for that teller. Are there any privacy rules which would restrict our ability to review our employee's account information? Also, is there any consent required by the employee when they begin employment?
I discovered, one day after a teller took a $6,500.00 check for deposit, the check would not be good and the customer was in a kiting loop. I put a Reg CC hold on the check, but was told it was too late since it was not placed the same day the item was deposited, but one day later. I protected $4,200.00 of our funds rather than losing the entire amount. We contacted the customer within 48 hours of his deposit to inform about the hold, as well as mailing him the form. Was I wrong?