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#1614231 - 10/10/11 06:11 PM SAR filing on bad checks
BNach Offline
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Joined: Jul 2011
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Central PA
Does anyone file SARs on customers who write bad checks? Our Security Department files SARs for checks written from accounts with insufficient funds if they feel the customer did it on purpose, knowing that the money wasn't in the account or if a customer post dates a check, ect. They file under the category of check fraud and they cite 18 USC 1344 which I think is very vague.

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#1614241 - 10/10/11 06:51 PM Re: SAR filing on bad checks BNach
Elwood P. Dowd Offline
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That's the bank fraud statute. It applies if someone attempts to defraud your bank. It does not apply if your customer attempts to defraud someone else. Post dating a check is not against the law (never has been) unless it is done as part of an attempt to defraud someone.

I would classify all of these as "voluntary" and, simply put, a waste of everyone's time.
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#1614602 - 10/12/11 05:52 AM Re: SAR filing on bad checks Elwood P. Dowd
Princess Romeo Offline

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Where the heart is
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Amen.
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#1614781 - 10/12/11 04:12 PM Re: SAR filing on bad checks Princess Romeo
BC78a Offline
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New York
NYS Banking Law has a law against writing a check knowing that there are not good funds available to cover it.

Did a SAR under the law based on a customer having over 100 bounces in a 6 month period (and yes I did recommend closing the account)
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#1614788 - 10/12/11 04:30 PM Re: SAR filing on bad checks BC78a
devsfan Offline
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NYC
I also file SARs for check and ACH fraud. We have had accounts opened with a small initial deposit and then see a series of checks and ACH debits without any funds to cover. Many appear to be for credit card payments. I just cannot see not filing SARs for fraudulent activity such as this.

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#1615079 - 10/13/11 11:14 AM Re: SAR filing on bad checks BC78a
Elwood P. Dowd Offline
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Banks are well within their rights to file in these situations. (I simply wouldn't because the phone is never going to ring.) It's citing the bank fraud statute as a reason for filing that is simply incorrect.

Let's see 100 X $27.50 = $2750. I'm surprised that some of your co-workers didn't object to closing the account because this person was a "good customer." blush
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#1615132 - 10/13/11 01:34 PM Re: SAR filing on bad checks Elwood P. Dowd
BC78a Offline
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New York
They did complain – a lot. Finally, it was agreed that they would be given one last warning, if they stopped the account would not be closed
Last edited by BC78a; 10/13/11 01:35 PM.
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#1615525 - 10/13/11 06:50 PM Re: SAR filing on bad checks BC78a
Rosebud123 Offline
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Florida
What about for ATM fraud activity over $5,000. For example if a card was cloned. Do you file a SAR?

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#1615649 - 10/13/11 08:44 PM Re: SAR filing on bad checks Rosebud123
rlcarey Offline
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Galveston, TX
Unless you had a suspect, it would have to be for $25,000 or more to trigger the required regulatory filing threshold.
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#1616154 - 10/14/11 08:48 PM Re: SAR filing on bad checks rlcarey
Rosebud123 Offline
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Florida
Ahhh. Thank you!

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