Customer wants to do a wire with cash. Policy states the money must be ran through the customers account first. Customer does not want this to happen because he claims showing this money in his account will bump him into the next tax bracket and he already pays the IRS enough. My gut is telling me to file a SAR on the basis of tax evasion. My head is telling me we are not the IRS police and I don't need to file. Help!! Thanks in advance!!

So, did you refuse to do the wire for the customer?

Secondly, and this comment is not directed at you, I think that "tax evasion" is going to be second only to "structuring" as the most plastic concepts ever in BSA/AML...

Whether of not you file a SAR is up to you, but the way I see it, the customer told you he intends to evade his income taxes and he is asking you to violate bank policy to help him do it. Those are two red flags that point to SAR in my opinion.

The conversation with the customer took place over the phone. He said he would be in and has not yet.

Yes, the wire would be refused if he did not move the money through his account.

Thank you both for your input! I know what to do. :-)