Wanted to poll other financial institutions on whether or not you would file a SAR if you had the following elements on a case:

Customer brings in $4,000 in cash that contains the odor of marijuana. Although the amount is less than FinCEN's filing threshold guidance, would you file a SAR?

Thanks!

That would prompt me to monitor/review the customer's activity. But without additional information (and additional transactions), I'd not be inclined to file on that transaction alone.

Ditto. If nothing else raises your eyebrows, I'd be inclined to monitor one cycle to see if anything develops. If it doesn't case closed.

What are you going to base the SAR on? SAR being filed due to a suspicious odor? What if you have a cold? The amount doesn't even satisfy the threshold for customers. I suggest you monitor the activity for suspicious transaction.

This is from a SAR Activity Review

Local police became aware of the defendant’s probable involvement in marijuana importation several years earlier as a result of information from a confidential informant in an unrelated drug investigation. At that time, the evidence against the defendant was judged to be insufficient to proceed with an indictment. His name resurfaced several years later following a cash deposit to his business account made by one of his employees. The teller receiving the deposit remarked that the cash smelled like marijuana. Branch employees reported the transaction to the bank’s security department. The bank filed a SAR on the incident, and noted that currency received in subsequent deposits appeared to have been laundered and ironed. Another SAR noted an exchange between a bank employee and a prior employee of the defendant, who referred to a deposit of “dirty money.” The SARs were
instrumental in re-igniting law enforcement’s interest in the defendant.

So, if the transaction does not pass the "smell test", you should keep an eye on the account and report the activity if you want to do so.

Aquamarine,

On the new SAR, there is a reason for condition of funds. So yes, if the OP wanted to file the SAR for the smell of the money, condition of funds is completely appropriate. See 33b "Suspicion concerning the physical condition of funds" on the new FinCEN SAR.

Additionally, while the bank is required to file a SAR at the thresholds (and above), the bank can always file a SAR at its option if below the threshholds.

Thanks for the feedback! Honestly, I don't think we would hold the account open to monitor if the branch verified it contained that odor. We were just torn on whether or not we would file if the cash total amount was under $5,000. Although we know smaller value SARs likely don't grab LE's attention, we feel a duty to report it due to the odor.

Living in the "Emerald Triangle" ... if we reported all cash that smelled like marijuana, every single person here would have a SAR filed. That is my area though, so we look for other activity (structuring, high electric bills ... etc ...) before filing.

If I sold a car and got cash, I'd hate to think I was thought "guilty" of this so I'm in favor or researching transactions, but I also have to remember that "Suspicious" doesn't mean "guilty."

Thx Retread for the post.

Thanks again for the feedback, appreciate it!

Your response made me chuckle, but it is a good thing to consider in making this decision, so thank you!