You know, I do not think that I am so concernd that the bank president stopped the filing. As the poster stated, this was the first one he has ever stopped, and really, according to the poster, he wanted further review, i.e. need more justification. It does not sound like he put the absolute kibosh on it.
Plus, the majority of us here have stated and agreed this is not a filable(sp) event. It appears to me that you have a defacto SAR committee, or at least a review process, and it worked as it should have... the lack of information and absence of illegal activity negated the need for a SAR.
The main issue here to me, IMO, is that no one seems to be willing to contact and follow-up with the customer and find out from them the source of funds. If you are the BSA Officer, call the customer yourself and figure out what is going on.
I don't repeat gossip, so listen closely...