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#1492483 - 01/10/11 05:42 PM MSB - strange accounting process
Tryin-2-Comply Offline
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Joined: Apr 2003
Posts: 202
Hills of TN
We have an MSB customer who makes all their deposits in the same manner each time; the deposit is made up of checks but the checks also clear the account the same day - so, it's a complete wash and we haven't had any other MSBs that operate in this manner.
For example:
12/1/2010 - Deposit $2400 (listed with customer names and checks to support it).

Then, at processing the same checks are run on the debit side that were deposited that morning.
ck #200 - withdrawal $200
ck #201 - withdrawal $200
ck #202 - withdrawal $200
ck #203 - withdrawal $200 and so on.

The only thing we can figure is they are cashing the items and that's why they run it this way. Some cash in, but never cash out. Anyone else have any cusotmers who operate like this?

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#1492823 - 01/10/11 11:19 PM Re: MSB - strange accounting process Tryin-2-Comply
Titanic Offline
Gold Star
Titanic
Joined: Feb 2005
Posts: 300
My Workplace
"Then, at processing the same checks are run on the debit side that were deposited that morning. "

When you say the same checks, are referring to the actual same checks? or are you saying that your customer writes checks from his account in the same amounts and made payable to the issuers of the checks deposited?
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#1492857 - 01/11/11 02:51 AM Re: MSB - strange accounting process Titanic
Sheldon Hendrix Offline
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Sheldon Hendrix
Joined: Jun 2006
Posts: 1,156
South
I'd consider reporting it as suspicious considering the nature of their transactions compared to your experience with similar customers. You don't have any obligation to determine if the activity is illegal - just report suspicious activity.

Having said that, the activity still deserves a thorough investigation.

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#1493777 - 01/12/11 03:37 PM Re: MSB - strange accounting process Sheldon Hendrix
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,279
Galveston, TX
Hard to tell as to the suspicious nature, as from your description it is difficult to tell what is going on. I would need to better description of what is happening. Such as when indicated that "at processing the same checks are run on the debit side that were deposited that morning", whose checks and are the deposited at you bank or somewhere else and they are just clearing on the same day???
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#1493874 - 01/12/11 04:35 PM Re: MSB - strange accounting process rlcarey
TMichelle Offline
100 Club
Joined: Jan 2009
Posts: 106
Sounds like they are cashing checks at the MSB location that are drawn off of their own account, is that right? Two more questions...are the checks made payable to a person or different people and are these the only checks that ever get deposited?
As far as the cash in and not having any cash outs...it depends on the type of business your MSB is and the amount of activity the business generates. If your customer is doing just enough other business (say conven store) to bring enough cash to cash the small amount of checks then i would say the activity you are seeing (no cash outs) could be justified.

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#1494090 - 01/12/11 06:40 PM Re: MSB - strange accounting process TMichelle
complylady Offline
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complylady
Joined: Jul 2002
Posts: 614
Michigan
I am not clear on the question either. Are the checks that are clearing that night (checks they cashed and now depositing) checks that are drawn on your bank? If so, that would happen the same as any other customer bringing in a check from another customer of the bank. The check will be a debit and a credit the same night - just to different accounts.

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