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#1497898 - 01/20/11 07:36 PM Fishy - Yes, SAR Worthy? As What?
CompliKat Offline
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Customer is part owner of several businesses that we bank. This is a large family, with multiple businesses and they all appear on each other's LLC paperwork... He came in on 12/31 and presented 24 checks to a teller drawn against his convenience store account. 12 were payable to his sister and 12 were payable to his brother-in-law. Each was for the same dollar amount, the grand total was over $40,000. The memo on each check read "Jan2010, Feb2010, Mar2010" and so forth. The sister and brother-in-law are not members listed on the LLC paperwork. None of the checks were endorsed (by anyone) and he wanted to deposit them into his personal checking account. The teller ops manager refused to allow him to deposit them to his personal account but offered to stamp them for deposit only and place them in the sister and brother-in-laws account. He demanded an exception but none was granted. He agreed to place them in the payee's account and then asked for a withdrawal slip and completed it asking to transfer the money to his personal account. Since he is not a signer on the payees account this transaction was refused as well. He insisted that the transaction had to be completed that day. I'm sure what ever he is up to is not quite appropriate, but I can't really figure out if I should file a SAR, and if I do, How would I characterize the activity? He was likely getting money off the books for tax purposes, making it look like he was paying payroll so it was a payroll expense. But that is just my hunch and i can't prove any of it! Any ideas out there?

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#1497912 - 01/20/11 07:45 PM Re: Fishy - Yes, SAR Worthy? As What? CompliKat
rlcarey Online
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Sounds like it to me and with no other information/explanation offered by the customer I would go with your hunch.
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#1497916 - 01/20/11 07:48 PM Re: Fishy - Yes, SAR Worthy? As What? rlcarey
CompliKat Offline
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So would you file a SAR? How would you characterize the activity? I would like to put "Other" and Tax Evasion on the blank line but I don't know if that would be acceptable?

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#1497926 - 01/20/11 07:56 PM Re: Fishy - Yes, SAR Worthy? As What? CompliKat
ACBbank Offline
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I have filed many SAR's for potential tax evasion. Remember, you don't have to prove anything. Investigating the underlying crime is the job of law enforcement, not the bank.
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#1497949 - 01/20/11 08:12 PM Re: Fishy - Yes, SAR Worthy? As What? ACBbank
TMichelle Offline
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What account were the checks to his sister and brother n law drawn off of? Is it an account at your bank? What was deposited into the account that he wrote them the checks off of? Any suspicious deposits that maybe he was trying to launder through accounts?

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#1497964 - 01/20/11 08:23 PM Re: Fishy - Yes, SAR Worthy? As What? TMichelle
CompliKat Offline
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The checks were drawn against the convenience store account that we bank. As far as I have seen, the deposits made were the regular weekly deposits - consistent with normal activity. I don;t think there is any laundering going on, but he is a structurer and it would not be out of the realm believeable for him to be moving money to get it off the books prior to years end. Needless to say I watch this bunch really close because they have an attitude and they are sneaky.

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#1497975 - 01/20/11 08:31 PM Re: Fishy - Yes, SAR Worthy? As What? CompliKat
TMichelle Offline
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If you were closer to me i would think we could be banking the same people...LOL We have a bunch of "brothers" that own multiple conv stores LLC's and write each other large "distribution" checks and they keep our attention at all times too!

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#1497986 - 01/20/11 08:40 PM Re: Fishy - Yes, SAR Worthy? As What? TMichelle
CompliKat Offline
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I remember this guy from my teller supervisor days and the nicest thing I can say about him is "Smarmy". He is so arrogant! Once when I told him something would not be possible he actually told me not to bother calling the Regional manager because the answer would always be yes. He just thinks he is so much smarter than everyone else. I think it may be a cultural thing because his homeland has the caste system and he was likely not from a family on the bottom. he just irks me! Sorry bit of a rant there.....

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#1497990 - 01/20/11 08:42 PM Re: Fishy - Yes, SAR Worthy? As What? TMichelle
SnowRed Offline
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I'd file the SAR. Tax evasion sounds like a good place to start. You are not the judge and jury, we just need to let our law enforcment know that we think something is hinky. Sounds hinky.

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#1497997 - 01/20/11 08:44 PM Re: Fishy - Yes, SAR Worthy? As What? SnowRed
CompliKat Offline
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Thanks, and on that note I think I will go file another SAR I already have one in the works on him for continued structuring.... I'm glad he is so smart and we little po-dunk bankers are so dumb that he can get away with this stuff...

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#1498036 - 01/20/11 09:02 PM Re: Fishy - Yes, SAR Worthy? As What? CompliKat
rlcarey Online
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I would not separate the two issues and just file combined SAR for both. This activity is just adjunct to the structuring.
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#1498063 - 01/20/11 09:17 PM Re: Fishy - Yes, SAR Worthy? As What? rlcarey
CompliKat Offline
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Thanks

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#1498153 - 01/20/11 10:19 PM Re: Fishy - Yes, SAR Worthy? As What? CompliKat
devsfan Offline
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Sooner or later you should also consider closing all of his accounts

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#1498163 - 01/20/11 10:30 PM Re: Fishy - Yes, SAR Worthy? As What? devsfan
CompliKat Offline
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The web of relatives and related properties and commercial loans will probably prevent senior management from ever letting that happen. We are talking hotel properties and stores, and lots of income from loans. You know how it is. He is just one of the fish in the pond. I don't know if the uncles and fathers and brothers and other relations are up to the same shenanigans, I haven't been able to find anything on them. Just this one cosky little guy... sigh.....

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#1498228 - 01/21/11 01:37 PM Re: Fishy - Yes, SAR Worthy? As What? CompliKat
Elwood P. Dowd Offline
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We have all faced "obstacles" where people higher on the food chain don't want to make tough choices. I've always encouraged bankers not to throw their career against that wall just to see if it would break.

However, don't let management's anticipated refusal to close an account chill your advice. Just make a written recommendation and, if it's turned down, go on to what's next. Rest assured that if this ever blows up, they will point out that you never suggested the relationship should be terminated. They will say that if you had suggested it, "We would have done it."
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#1498246 - 01/21/11 02:00 PM Re: Fishy - Yes, SAR Worthy? As What? Elwood P. Dowd
ACBbank Offline
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Originally Posted By: Ken_Pegasus
However, don't let management's anticipated refusal to close an account chill your advice. Just make a written recommendation and, if it's turned down, go on to what's next. Rest assured that if this ever blows up, they will point out that you never suggested the relationship should be terminated. They will say that if you had suggested it, "We would have done it."


The truthiness of Ken's statement cannot be denied.
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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#1498408 - 01/21/11 03:49 PM Re: Fishy - Yes, SAR Worthy? As What? ACBbank
BrendaC Offline
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Another word of advice from someone who has been in the trenches since the inception of BSA...don't take it personally. This is business, keep it in perspective. Document your findings and recommendations, being clear to identify potential risks to the bank and let management to its job. Document, retain and move on to the next task at hand. Escalate issues only when risk warrants you to do so, not because you feel you aren't being heard.

Examinations often enable management to "see the light" if they are veering off course and you are well covered if you have performed your duties in a prudent, professional manner.
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