Skip to content
GeoDataVision
Thread Options
#1524234 - 03/18/11 11:15 PM Check Kiting
ABT Offline
Junior Member
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?

Return to Top
BSA/AML/CIP/OFAC Forum
#1524236 - 03/18/11 11:22 PM Re: Check Kiting ABT
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,325
Illinois
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.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#1524239 - 03/18/11 11:48 PM Re: Check Kiting BrianC
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
Here is some information on check kiting if you are interested.

http://www.bkolaw.com/site/pdf/BLJ%20Published.pdf
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

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

http://findarticles.com/p/articles/mi_m2194/is_n11_v62/ai_15139850/

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.
_________________________
CFE, CAMS

Return to Top
#1524248 - 03/19/11 01:02 AM Re: Check Kiting Pat Patriot Act
rlcarey Offline
10K Club
rlcarey
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1524913 - 03/22/11 12:22 AM Re: Check Kiting rlcarey
Titanic Offline
Gold Star
Titanic
Joined: Feb 2005
Posts: 300
My Workplace
The kitting business has been greatly reduced by CHECK 21, but the risks are still present...in 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]

Return to Top

Moderator:  Andy_Z