I did a search and I didn't see where anyone posted this, so I thought I'd get some input. I just noticed we opened a new business account for a Firearm Sales business. We're a small bank, with really no high risk accounts, and our risk assessment didn't pick this up as high risk either (revisiting the risk assessment now), but, I've started reviewing the licensing requirements for my state (CA), but not having banked one before, I'm not sure what kind of activity would be normal. He stated that deposits would be about $25,000/month and 60% would be cash, to me that seems like a high percentage of cash, but not having experience with these types of accounts, I have nothing to go by. If anyone has any thoughts, I'd really appreciate it.

We just inherited a couple;
I do not consider them high risk and code them as any other retail store.
The cash is not unusually high so far;
on the surface 60% cash seems high to me, but it may depend on their size, the area and the clientele.

..I just checked and the cash is approx. 21% of total credits.

I see them periodically; they are not necessarily high risk. I think cash is going to be regional / local. You might have the account officer (either with or without you) go out and talk to the owner, to get a feel for it. It would not shock me if that type of cash activity is typical.

Do they have a range as well as the retail piece? A lot of times the cash comes in through the range and ammo sales associated with it.

Thanks Magic & E.G.B - at this point, I know nothing about the business, it's going to be moving from it's current location in another city to ours. We have virtually no information as it's a sole prop and the business isn't open here yet, so I'll have to get an account officer involved once they open here.

Magic - 21% seems more reasonable, that 60% seemed off to me, but maybe it's the business owners guess and not accurate. There's no activity on the account yet, so I guess I will wait and see.

Thank you very much to both of you for your help.

As a gun purchaser and in a family of collectors it is very likely that cash is the primary source of income for this business. I am not sure 60% is reasonable, but it all depends on where you are located, I suppose. Additionally, gun sales have sky rocketed in the last few years and probably will continue on that trend for some time.

We have a customer that is in firearm and supply sales, and I would say almost 50% of their income is in cash. I might be a little bit off on my percetage, but looking at their activity that seems about right. Also, for their location, the cash activity is not unusual.
Gun sales do seem to be climbing here recently...

We too have a gun seller customer. I watched them closely for some time and activity is fairly steady. As with BSALadies about 50-60% cash.

We have virtually no information as it's a sole prop

Although they don't bank with us we have a couple of SP's here. They sell firearms (new and used) and they also do gunsmithing. Their cash business is 100%. They won't accept checks or plastic.

Thanks for all the feedback. We probably only have a couple of firearm sales businessess here in town and I know nothing about guns, so I really do appreciate this feedback. I'll have to watch for the location to open and send an account officer out there and see what we find out.