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#1767908 - 12/17/12 04:11 PM Accounts for Business Owner Under Investigation
Matt_B Offline
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Matt_B
Joined: Sep 2011
Posts: 1,648
A CU, Where Regs Don't Apply
Over the weekend, our commercial accounts person declined to open a new business account for a local business that is currently under federal investigation. Details have been very lacking, but the IRS's Criminal Investigation Department raided the business a couple of months ago and have frozen the company assets at their primary financial. (upwards of $1.5 million)

He came up to me this morning to tell me of this, (which I'm glad to not have to worry about any accounts for this business!) and informed me that both the director and his spouse opened accounts with us last month, and currently have around $60,000 sitting in them. I'm not really sure what, if anything I should do with these though. The funds came from cashier's checks from a different financial (not the one with frozen assets), paid to them personally, and other deposits are not suspicious at all. Aside from some additional monitoring, anything else that should be done? I don't feel like they would require anything more, unless suspicious activity occurs on them.
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#1767910 - 12/17/12 04:15 PM Re: Accounts for Business Owner Under Investigation Matt_B
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
I agree with your Rx; they should be at the top of your "watch list," but there's no basis for doing anything further.
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#1767922 - 12/17/12 04:53 PM Re: Accounts for Business Owner Under Investigation Matt_B
joser Offline
Member
Joined: Sep 2005
Posts: 68
NJ
Negative news trigger - Just a suggestion -- Try to determine the original source of funds for the cashier's checks via (314 b) if you and the other banks's are registered and document (or disclose) your findings

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#1767932 - 12/17/12 05:35 PM Re: Accounts for Business Owner Under Investigation Matt_B
Matt_B Offline
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Matt_B
Joined: Sep 2011
Posts: 1,648
A CU, Where Regs Don't Apply
Good points, thanks for the opinions!
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