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#1605071 - 09/16/11 08:40 PM File SAR?
Anonymous
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Person comes in bank to apply for a loan to buy a home. Tells the lender he is not a legal US citizen. His Visa has expired and has no other identification.
Further review finds this person has a checking account with us that was opened prior to his expired VISA and US issued driver's license.
What would be the approriate steps to take? Reg B says the application can be declined for illegal status without any fair lending violations. Question now remains as to whether a SAR would be required????

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#1605226 - 09/19/11 12:03 PM Re: File SAR? Anonymous
BSABecky Offline
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Seymour, IN USA
This person openly told you he's not a legal citizen. I'd file a SAR.
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#1605230 - 09/19/11 12:41 PM Re: File SAR? Anonymous
Elwood P. Dowd Offline
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Elwood P. Dowd
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Several mega banks solicit accounts making it clear that no U.S. identification is required; they openly solicit accounts from people who are not U.S. citizens. Being "illegal" doesn't pull any SAR filing triggers that I am familiar with.
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#1605468 - 09/19/11 05:14 PM Re: File SAR? Elwood P. Dowd
Anonymous
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Just because the mega banks do it certainly doesn't make it the gold standard.

How can you properly identify the person who has only an expired Visa, expired driver's license, and no further identification? Second question would be how can you keep this person's account open? Check your CIP policy to see what it says.

Visa expired = person needs to return home. Staying on expired visa = crime. Knowledge of a crime = suspicious activity. File a SAR.

I'd close the checking account, decline the loan, and file a SAR.

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#1605493 - 09/19/11 05:42 PM Re: File SAR? Anonymous
BSABecky Offline
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Seymour, IN USA
Quote:
Visa expired = person needs to return home. Staying on expired visa = crime. Knowledge of a crime = suspicious activity. File a SAR.



That was my thought.
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#1605515 - 09/19/11 06:11 PM Re: File SAR? Anonymous
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
Sorry, apparently my points were not as obvious as I thought.

First, if the banks who were opening accounts for illegal aliens were required to file SARs they would have heard about it from their regulators and would have been filing SARs for that purpose. They would have shown up in SAR statistics long before now.

Second, banks do not file SARs based on the status of the person across the desk. To use a more powerful example, even if the person across the desk is on the FBI's most wanted list the appropriate response would not be the filing of a SAR. There are a number of rules that require SAR filing. This is not one of them.
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#1605530 - 09/19/11 06:32 PM Re: File SAR? Elwood P. Dowd
BrianC Online
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BrianC
Joined: Nov 2004
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Illinois
Closing an account due to a lack of identifying documentation and filing a SAR for it is quite a leap. If I refuse to open an account for a customer with an expired driver's license because my CIP requried a current ID, we're not having a SAR conversation. While being in the US illegally may be a crime, the very same government is encouraging these individuals to obtain ITINs so they can file tax returns on the income they're receiving even though they are not legally allowed to work in the US.

Now...same senario and the individual presents a stolen Social Security number to open a checking account or apply for a loan, then you may have a SAR for ID Theft. As Ken stated, identifying an illegal alien is not a reason for filing a SAR.
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#1609792 - 09/28/11 02:59 PM Re: File SAR? BrianC
Anonymous
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Originally Posted By: Anonymous
Visa expired = person needs to return home. Staying on expired visa = crime. Knowledge of a crime = suspicious activity. File a SAR.


I disagree. The criminal activity (the immigration violation?) has to occur at, to, or through your financial institution, for a SAR to be required.

They did not violate their Visa at your institution.
They did not violate their Visa to your institution.
They did not violate their Visa through your institution.

Done. No loan, probably close the checking account (all income reflected in it would probably lead to a SAR if it adds up to over $5,000).

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#1609793 - 09/28/11 02:59 PM Re: File SAR? BrianC
Anonymous
Unregistered

Originally Posted By: Anonymous
Visa expired = person needs to return home. Staying on expired visa = crime. Knowledge of a crime = suspicious activity. File a SAR.


I disagree. The criminal activity (the immigration violation?) has to occur at, to, or through your financial institution, for a SAR to be required.

They did not violate their Visa at your institution.
They did not violate their Visa to your institution.
They did not violate their Visa through your institution.

Done. No loan, probably close the checking account (all income reflected in it would probably lead to a SAR if it adds up to over $5,000).

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