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#1072100 - 10/28/08 06:30 PM Monetary Instrument Sales to Non-Customers
Compliance Lover Offline
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Posts: 555
Have most of you quit selling monetary instruments to non-customers or have you just put a limit on the dollar amount? If you have placed a limit (say less than $3,000) do you still obtain the name/address information that is required for $3,000 and over?

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#1072111 - 10/28/08 06:36 PM Re: Monetary Instrument Sales to Non-Customers Compliance Lover
AuditorK Offline
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Joined: Feb 2003
Posts: 962
PA
We do not sell to noncustomers.

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#1072142 - 10/28/08 06:59 PM Re: Monetary Instrument Sales to Non-Customers AuditorK
ktac MITCH Offline
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ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
Originally Posted By: AuditorK
We do not sell to noncustomers.

Ditto for us
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#1072166 - 10/28/08 07:25 PM Re: Monetary Instrument Sales to Non-Customers ktac MITCH
WonderWoman Offline
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WonderWoman
Joined: Mar 2007
Posts: 2,108
gone fishin'
We will only sell to non-customers if they are exchanging an on-us check. (no cash back can be received, just check for check)

We do not sell to non-customers with cash.
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#1072180 - 10/28/08 07:39 PM Re: Monetary Instrument Sales to Non-Customers WonderWoman
Skittles Online
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Skittles
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Posts: 13,965
TN
Same as newbsa here.
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#1072216 - 10/28/08 08:11 PM Re: Monetary Instrument Sales to Non-Customers Skittles
Compliance Lover Offline
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Posts: 555
Ok, thanks. I plant to put a stop to it here too. It will make my life easier.

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#1072329 - 10/28/08 10:50 PM Re: Monetary Instrument Sales to Non-Customers Compliance Lover
Elwood P. Dowd Offline
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Elwood P. Dowd
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Posts: 21,939
Next to Harvey
Take a close look at how eliminating the practice will ease your 314(a) searches. Six months after you stop selling checks to anyone other than your own depositors and borrowers you will have no need to review purchasers of official checks in connection with 314(a) queries.

If you looked at your loans and you looked at your deposits and Mustafa's name does not appear there it's certainly not going to be found in your list of official check purchasers. (You are not required to check payees against 314(a) lists.)

I suggest you track newbsa's thought process...a flat prohibition on selling to non customers is more than you need and can create a problem when the non customer wants to purchase the official check with an on-us check.
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#1088608 - 11/26/08 07:03 PM Re: Monetary Instrument Sales to Non-Customers Elwood P. Dowd
Kelsey D Offline
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Posts: 516
Ohio
Originally Posted By: Ken_Pegasus
I suggest you track newbsa's thought process...a flat prohibition on selling to non customers is more than you need and can create a problem when the non customer wants to purchase the official check with an on-us check.


Will selling to non-customers in these instances affect 314(a) searches? We had a situation where a non-customer came in with one of our cashier's check payable to her and wanted to take some cash and put the rest back into a new cashier's check. We didn't allow it because we don't allow non-customers to purchase official checks. We also turn away non-customers who want to exchange on-us checks for cashier's checks. Wouldn't these non-customers be the purchasers, thus requiring us to search their names against the 314(a) list?
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#1088687 - 11/26/08 08:01 PM Re: Monetary Instrument Sales to Non-Customers Kelsey D
John Burnett Offline
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Cape Cod
Kelsey,

I am no longer a banker, so I don't suffer the problems of dealing with the 314(a) lists any more. So, forgive me please if I miss the mark here. Don't the 314(a) instructions require you to check monetary purchases for which you are required to maintain a record under the cash purchases rules? If that's the case, why would you be concerned about a non-cash transaction such as the payment of an on-us check with a cashier's check? -- Or have they changed the rules since I stopped working as a banker and started working FOR bankers?
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BankersOnline.com
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#1088693 - 11/26/08 08:06 PM Re: Monetary Instrument Sales to Non-Customers John Burnett
SueBonen Offline
New Poster
Joined: Mar 2005
Posts: 20
Massachusetts
we stopped selling monetary instruments, as well as travelers checks and gift checks to noncustomers for cash a couple of years ago. The only cash sale we do for noncustomers is US Savings bonds, $1,000.00 or less.

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#1088713 - 11/26/08 08:32 PM Re: Monetary Instrument Sales to Non-Customers SueBonen
Kelsey D Offline
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Joined: Aug 2006
Posts: 516
Ohio
Wow, John! I think you may be right. It may have been unnecessary for me to be a "bad guy" in so many instances.

From FinCEN's FAQ's:

5. What records should a financial institution search?

Unless noted otherwise in the instructions to a 314(a) request, a financial institution is required to conduct a one-time search of the following records, whether or not they are kept electronically (subject to the limitations below): ... (3) records of the sale of monetary instruments (e.g., cashier's checks, money orders, or traveler's checks) maintained pursuant to 31 CFR 103.29 to determine whether a named subject purchased a monetary instrument...

31 CFR 103.29 of course refers to recordkeeping requirements for cash sales of monetary instruments of $3,000 to $10,000.

Thanks for enlightening me!
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Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.

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#1088970 - 11/28/08 02:13 PM Re: Monetary Instrument Sales to Non-Customers Kelsey D
nemsi Offline
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Joined: Nov 2005
Posts: 383
As for the sale of monetary instruments I ditto New BSA and John. What reporting requirements are there for savings bonds?

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