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#1260181 - 10/01/09 05:47 PM Desperate for help re SAR on Insider
Anonymous
Unregistered

For several years I have suspected, but been unable to prove, a lender has been doing deals to benefit himself not the bank. This person was alpha leader of the bank, if you know what I mean, so any allegation I made in conversation with others was quickly shot down and I was told I would lose my job if he found out.

The lender is now gone and a new lender is in his place. He has hired attorneys, who contacted me today, demanding I provide all my past SARs on insiders. When I said there were none, they said I should have been filing on the alpha lender. The attorneys said I don't need proof, just suspicion and I should file.

Is that correct? Just because I suspect someone may be getting a kickback because I can't understand why he is doing loans with low fees, or little or no collateral, I am required to file? I would be filing on every insider!! I realize it is a suspicious activity report, but I believe your suspicions have to be based on some fact. Am I wrong?

Please help.

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#1260184 - 10/01/09 05:50 PM Re: Desperate for help re SAR on Insider Anonymous
Anonymous
Unregistered

If you have suspicion that any insider of your bank is doing something illegal, you must file a SAR. There is no minimum dollar amount, and you do not need to be able to prove anything in a court of law, you just need to have suspicion and a narrative to back it up, explaining as much as you can.

Without knowing all the facts, I believe that yes, if you had suspicions for "several years", you definitely should have filed SARs. You should in fact file SARs now.

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#1260197 - 10/01/09 06:01 PM Re: Desperate for help re SAR on Insider Anonymous
Anonymous
Unregistered

Ok - but I would have been fired and don't tell me the law protects me because the law is not going to find me a job and pay my bills. How can I make an allegation to the government without proof? Like I said I would be reporting on just about everyone in the bank!

Do you file for every regulatory violation? Do you name everyone on loan committee, the Board and all processors? Where does it end? I am freaking out!!!

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#1260231 - 10/01/09 06:27 PM Re: Desperate for help re SAR on Insider Anonymous
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
OK I'm still shocked..... an attorney contacted you and told you that you had to turn over SARs??? Did you talk to the attorney?

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#1260241 - 10/01/09 06:34 PM Re: Desperate for help re SAR on Insider Anonymous
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Seeing deals that make little or no sense, or fall outside of underwriting standards, in an of itself, is not a reason to file a SAR.

It IS a reason to investigate further, especially if there is a pattern to the behavior. But if you're investigation doesn't lead you to suspect that he is doing any more than simply giving away the farm, there's no basis for filing.

As for requesting copies of any SARs, or even questioning whether or not they exist, his attorneys simply are not entitled to that information.
Last edited by JacFSB; 10/01/09 06:35 PM. Reason: syntax
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#1260246 - 10/01/09 06:36 PM Re: Desperate for help re SAR on Insider nemsi
Anonymous
Unregistered

It is the bank's attorney - so yes. I am scared to death here. Am I really supposed to report every time a lender violates a regulation because they may be up to something suspicious? I really, truly thought you had to have some factual basis to a SAR. I literally would be filing hundreds of these...daily...on our lenders, credit dept and board.

Someone please tell me you don't have to file on every reg violation and you can wait to build a case? Isn't that what the 30 days is for - to do an investigation? And if the investigation is inconclusive, you don't file - and you might not keep records because you will lose your job if they find out. Why would anyone be a BSA Officer?

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#1260251 - 10/01/09 06:38 PM Re: Desperate for help re SAR on Insider Anonymous
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,964
TN
No, you don't have to file on any regulation violation. If that were the case all lenders would be in prison - ha.
_________________________
My Opinions Only

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#1260289 - 10/01/09 07:02 PM Re: Desperate for help re SAR on Insider Skittles
Anonymous
Unregistered

Can we just do that (put all lenders in prison)? That would make my job easier! smile

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#1260390 - 10/01/09 08:23 PM Re: Desperate for help re SAR on Insider Anonymous
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
To help you going forward- can you create a SAR committee? That helps you and documents the activity and the committee's decision to file or not. Having had this situation could help justify the committee. I don't know who your regulators are but I know that the OCC likes SAR committees. I wouldn't do it any other way. Having officers from the operations and security area are a real plus for me. The committee (all 3 of us)makes the decision.

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#1260413 - 10/01/09 08:43 PM Re: Desperate for help re SAR on Insider nemsi
Anonymous
Unregistered

Thanks Nemsi! We do have a committee, but, like I said, to raise those allegations would mean a death sentence for your job.

FWIW, I talked to our regulator and they said I was fine. It is the job of the lenders, credit and President to report suspicious lending to the BSA Officer because they have the expertise in these areas not me. I also asked if I was wrong not to file based on my previous suspicions and they said no. They don't want a bunch of garbage SARs or retaliation SARs. If I could not find a piece of evidence to prove or begin to prove a crime was committed, I was not obligated to file.

My circumstances are unique and the examiner is intimately familiar with those circumstances, so I would not be inclined to follow this advice in every situation, but at least I know now I didn't do anything wrong.

Thanks for following me along on this journey.

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#1260429 - 10/01/09 08:51 PM Re: Desperate for help re SAR on Insider Anonymous
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
I'm glad that you talked to your regulators. I agree with you on filing worthless SAR- what a waste of everybody's time.
Glad it worked out!

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#1260476 - 10/01/09 09:38 PM Re: Desperate for help re SAR on Insider nemsi
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I'm not going to answer any of your questions, but it's terribly wrong that you fear losing your job for doing your job. Where's the support?
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1260973 - 10/02/09 04:56 PM Re: Desperate for help re SAR on Insider David Dickinson
Comply 101 Offline
Platinum Poster
Comply 101
Joined: Jul 2001
Posts: 708
This is a perfect example of the need for a Whistle blower hotline. You can remain anonymous and have your voice heard to audit committee member, internal auditor, bank attorney, etc.
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CRCM CAMs

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#1287543 - 11/16/09 10:38 PM Re: Desperate for help re SAR on Insider Comply 101
Anonymous
Unregistered

BSA Guy - in a big bank that may work. In a small bank, the "ear" on the Audit Committee is a major borrower of the alpha lender, as is the bank's attorney!

I reported all of this to a compliance examiner once, but he couldn't do anything. The alpha lender would not let me talk to S&S examiners. I even called the regulator hotline and explained what I thought was going on and all I got was "what's your proof?". It was extremely frustrating.

Anyone hiring?

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