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#1524234 - 03/18/11 11:15 PM Check Kiting
ABT Offline
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Joined: Nov 2010
Posts: 32
Is it a correct statement that a bank has to suffer a loss for check kiting to have taken place? Also, with checks clearing so quickly these days, can check kiting happen with only 2 banks involved?

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#1524236 - 03/18/11 11:22 PM Re: Check Kiting ABT
BrianC Offline
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Joined: Nov 2004
Posts: 6,325
1. No. Even the attempt by a customer, whether or not a loss is involved is reportable if the dollar threshholds are met.
2. Yes. Just because float has almost been eliminated isn't going to stop people from trying it.
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#1524239 - 03/18/11 11:48 PM Re: Check Kiting BrianC
Retread Offline
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Joined: Oct 2003
Posts: 2,548
Here is some information on check kiting if you are interested.
Politicians are like diapers. They need to be changed often and for the same reason.

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#1524245 - 03/19/11 12:30 AM Re: Check Kiting Retread
Pat Patriot Act Offline
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Pat Patriot Act
Joined: Apr 2009
Posts: 450
Here's another one:

The determining factor for kiting is whether the float balance generated by check deposits are repeatedly the only reason why items are clearing. Losses aren't directly relevant, but they always happen on someone's end when the scheme is broken up.

Although the recent Reg CC changes make all checks local thus giving them a one-day float, this probably won't change things for the average kiter.

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#1524248 - 03/19/11 01:02 AM Re: Check Kiting Pat Patriot Act
rlcarey Offline
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Joined: Jul 2001
Posts: 79,651
Galveston, TX
"Although the recent Reg CC changes make all checks local thus giving them a one-day float"

Ahhh - Reg CC has nothing to do with float. That all depends on the time it takes an item to clear. All Reg CC imposes is maximum hold times.
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#1524913 - 03/22/11 12:22 AM Re: Check Kiting rlcarey
Titanic Offline
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Joined: Feb 2005
Posts: 300
My Workplace
The kitting business has been greatly reduced by CHECK 21, but the risks are still particular, when Banks make internal exceptions to grant credit to its "well-establish" customers....

Whatever happen to the term "well-establish" customers?

Anyhow, but to the subject, if you suspect kitting...most certainly it is kitting and should proceed with the filing of a SAR (even if the Bank did not take a loss)...
[b]"Common sense is not so common." Voltaire~[u]

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