A customer has admitted that he is writing checks on his account, taking them to a friend who owns a liquor store and receiving cash. The friend is instructed to hold the checks for a few days before depositing them.
In the meantime there are frequent deposits to the customer's account where deposits are either made up of cash, money orders, or cashier's checks. There are 3-5 different purchasers of the cashier's checks. The customer is also writing checks to the same people purchasing the cashier's checks.
There are times when the deposits stop, ususally resulting in an overdrawn balance for a while. Then the cycle begins again.
I have recommended the account be closed, but it is not going to happen. I know this is confusing, I am trying to determine if a SAR is warranted and if so, is kiting the correct choice.
I appreciate any help you can give.