Our customer came in an deposited $2,500 in cash. According to the teller, the funds were odorous of marijuana. I know there are thresholds for criminal violations, but who is to say this is a criminal violation? Should a SAR be filed?

“Chance favors only the mind that is prepared”. Louis Pasteur

First question - How does your teller know is smells of marijuana? First hand experience. What criminal activity has taken place?

It's a stretch to file based on the odor. I'd watch this customer's accounts closely for cash trends and structuring.

And who's to say they weren't paid it by someone that owed them money and the smell originated from the other person? I've had docs before that reeked of cigarette smoke weeks after they had been received. I'd agree that it might be worth a closer look, but wouldn't go too far with it.

I agree with Peter

Where are you located? We're in Northern California & every cash deposit smells like pot here. It's normal for us ... it doesn't necessarily mean that customer is doing anything illegal (they could have been paid by someone who is ... etc ...). I look for other red flags. Structuring etc ...

While I agree that the customer may not be doing anything illegal, IMHO once it reaches reportable thresh holds I would report it. There may be other local institutions that hold accounts for the same customer that they are structuring smaller deposits across or they may be aiding someone in laundering the funds. Do not forget to monitor the debits in addition to the credits. Just my opinion.

The amount does not meet the SAR reportable threshold but I would conduct a review of the customer's overall relationship to see if there is anything suspcious going on...

Very good plan!

"every cash deposit smells like pot here"

In South Florida, you don't dare smell the money. It's likely coated with white powder residue.

At a seminar more than twenty years ago, an agent said that the scent dogs would alert to cocaine on as little as $500 in $20s anywhere in South Florida.
the more things change...