Skip to content
BOL Conferences Top Gun 23
Thread Options
#1631461 - 11/22/11 05:56 PM Bank ordered to explain SAR activity
joser Offline
Member
Joined: Sep 2005
Posts: 68
NJ
Just sharing

Bank ordered to explain SAR activity

http://www.bizjournals.com/southflorida/...r-activity.html

Return to Top
BSA/AML/CIP/OFAC Forum
#1631550 - 11/22/11 07:48 PM Re: Bank ordered to explain SAR activity joser
Tater Offline
Platinum Poster
Joined: Jan 2006
Posts: 631
Missouri
Now that is interesting...and here I thought SARs in open court were not allowed...
_________________________
Born once? Die twice.
Born twice? DIE ONCE!

Loan Review, HMDA, ALLL

Opinions are my own and do not reflect any others

Return to Top
#1631577 - 11/22/11 08:05 PM Re: Bank ordered to explain SAR activity Tater
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
I found this interesting that the judge would make this a demand:

Quote:
And by Nov. 28, the bank has been told to have a response from the OCC or at least be ready to discuss the issue with her.


I don't think she understands that, while the OCC can compel a bank to just about anything, there is no reciprocity in the relationship.

Having said that, I suspect there is more to the story on why the communication between the judge and the bank is a bit...., rough.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top
#1631614 - 11/22/11 08:42 PM Re: Bank ordered to explain SAR activity Princess Romeo
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,365
Galveston, TX
I would just give this to the judge and go tell her to pound sand.....

§ 103.18 Reports by banks of suspicious transactions.

(A) The disclosure by a bank, or any director, officer, employee, or agent of a bank, of:

(2) Prohibition on disclosures by government authorities. A Federal, state, local, territorial, or tribal government authority, or any director, officer, employee, or agent of any of the foregoing, shall not disclose a SAR, or any information that would reveal the existence of a SAR, except as necessary to fulfill official duties consistent with Title II of the Bank Secrecy Act. For purposes of this section, “official duties” shall not include the disclosure of a SAR, or any information that would reveal the existence of a SAR, in response to a request for disclosure of non-public information or a request for use in a private legal proceeding, including a request pursuant to 31 C.F.R. 1.11.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1631617 - 11/22/11 08:47 PM Re: Bank ordered to explain SAR activity rlcarey
BC78a Offline
Gold Star
BC78a
Joined: May 2006
Posts: 311
New York
I hope the newspaper prints a follow-up on this story.
_________________________
___
Just my opinion for what it is worth

Return to Top
#1631663 - 11/22/11 09:23 PM Re: Bank ordered to explain SAR activity BC78a
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,608
Pulling people out of the ditc...
something tells me this bank has irritated this judge before and she ain't going to put up with no shenanigans from them...(sorry, I must watch too much Judge Judy)
_________________________
Providing alternative truths since the invention of time

Return to Top
#1631765 - 11/23/11 11:51 AM Re: Bank ordered to explain SAR activity HappyGilmore
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
I'm no lawyer, but I think defense counsel should read this and present it to the judge.

http://tinyurl.com/82v4hgz

Sounds pretty clear cut to me.
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#1632851 - 11/29/11 12:34 PM Re: Bank ordered to explain SAR activity Retread
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#1632862 - 11/29/11 01:31 PM Re: Bank ordered to explain SAR activity Retread
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Now, that makes a little more sense.

And it's good that the article clarified the distinction between the bank's internal fraud monitoring alerts (the piece that really matters in this case), and the SARs, and stressed that any SARs would be absolutely confidential.

But more importantly, it's good that the bank was able to get this point across in court!

Return to Top
#1632874 - 11/29/11 02:00 PM Re: Bank ordered to explain SAR activity JacF
BC78a Offline
Gold Star
BC78a
Joined: May 2006
Posts: 311
New York
Thanks Retread
_________________________
___
Just my opinion for what it is worth

Return to Top
#1632879 - 11/29/11 02:06 PM Re: Bank ordered to explain SAR activity BC78a
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The theory of the case is that it's the bank's fault that some people got defrauded in a Ponzi scheme. The irony of the case is that if the bank was filing continuation SARs on this dude for the entire period of time it would not be allowed to say so.

They may be fighting the production of that which they would most like to deliver.

Princess Romeo's observation about the bank's inability to manage it's regulator's level of responsiveness is insightful. If the OCC (or FinCEN) wanted to join the fray they could file their own amicus curiea brief with the court and clarify the situation pretty quickly.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1633355 - 11/30/11 01:17 AM Re: Bank ordered to explain SAR activity Elwood P. Dowd
Compliancer Offline
Gold Star
Compliancer
Joined: Jan 2006
Posts: 334
San Francisco, CA
It still seems to me that TD was dragging its heals and being uncooperative. Finding reports on the eve of a trial - really? I've worked for 3 very large FI's and each of them had extremely knowledgeable staff who knew all the reports used to generate an investigation. There is no reason that TD could not provide the reports showing what triggered an investigation (with any SAR decisioning and activity redacted) which looks to be what the judge is after.
_________________________
My opinions do not necessarily reflect those of all the voices in my head.

Return to Top

Moderator:  Andy_Z