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#1746155 - 10/03/12 02:12 PM Loan purchaser notifying originating bank of SAR
Elwood P. Dowd Offline
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Elwood P. Dowd
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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.)
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#1746171 - 10/03/12 02:40 PM Re: Loan purchaser notifying originating bank of SAR Elwood P. Dowd
Retread Offline
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I hope you are kidding. This deserves a lengthy response which I do not have time for right now. I think the first thing I would do would be to ask the would be purchaser for a copy of the "new" law that allows them or requires them to notify everybody, including the suspect, that a SAR has been filed. I think the would be purchaser is living on the edge, and flirting with disaster.
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#1746201 - 10/03/12 03:32 PM Re: Loan purchaser notifying originating bank of SAR Elwood P. Dowd
edAudit Offline
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You are here
I am with Retread on this.
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#1746437 - 10/03/12 09:07 PM Re: Loan purchaser notifying originating bank of SAR Elwood P. Dowd
WonderWoman Offline
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gone fishin'
They must be new to the BSA regs ... it has only been a month for some of these companies.

It sounds like those cases where a new reg comes out & people go wild crazy with it.
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#1746930 - 10/05/12 09:58 AM Re: Loan purchaser notifying originating bank of SAR WonderWoman
Elwood P. Dowd Offline
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Quote:
It sounds like those cases where a new reg comes out & people go wild crazy with it.


Probably.

Per the November, 2010 Guidance I would say the originating bank is obligated to act:

If you or your institution becomes aware of an unauthorized disclosure of a SAR...you should immediately contact FinCEN's Office of Chief Counsel at (703) 905-3590...

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