Bank assembles loan package and offers for sale in secondary market. In performing due diligence, would-be purchaser discovers that applicant's bank balances have been inflated. When contacted by purchaser, loan applicant acknowledges that he knowingly submitted false information.
Purchaser's representative informs applicant that it will file a SAR. Purchaser's representative then writes a letter to the originating bank pointing out the false statement and saying it is filing a SAR. The letter states the would-be purchaser is notifying the originating bank because it is required by law to do so.
Has anyone seen anything remotely like this? (No, this is not a hypothetical I cooked up for a BSA school.)
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.