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#1853112 - 09/17/13 09:21 PM MSB EDD
NanaK Offline
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Near the water
Would anyone want to share how they handle EDD on their MSB accounts? Are you conducting EDD semi-annually or annually, and if so, what all are you including in your reports? We have a few that we file SARs on every 90 days and the BSA Committee has not wanted to close them yet. How much detail are you putting into the reviews? Thanks!

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#1853213 - 09/18/13 01:48 PM Re: MSB EDD NanaK
MagicCity Offline

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MagicCity
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I analyze their activity monthly;
percentage of cash out to checks etc.
Perform annual site visit.

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#1853219 - 09/18/13 01:56 PM Re: MSB EDD NanaK
Neytiri Offline
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Just wondering - why are you filing SARs on your MSBs? Are they not registered?

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#1853259 - 09/18/13 02:32 PM Re: MSB EDD Neytiri
NanaK Offline
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They're registered, but they are structuring. The owner brings in cash, has the teller count it in front of him, and makes the teller remove excess cash so they never deposit more than $9,900. They are always exchanging small bills for $100's and make sure it is never over $9,900. He sends the wife in to make the deposit and when she discovers she is depositing more than $10,000, she makes the teller remove some of the cash from the deposit. That plus the amount of cash coming just does not seem appropriate for their size/amount of junk on their shelves.

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#1853357 - 09/18/13 04:13 PM Re: MSB EDD NanaK
ItNeverEnds CRCM Offline
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Originally Posted By: NanaK
The owner brings in cash, has the teller count it in front of him, and makes the teller remove excess cash so they never deposit more than $9,900.


Maybe it's just me, but I would never allow this. The customer needs to have the deposit slip ready and have the cash counted himself prior to coming into the bank. In my opinion he's getting the teller to structure for him.
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#1853367 - 09/18/13 04:24 PM Re: MSB EDD NanaK
Neytiri Offline
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I would hand them the FinCEN CTR Reference Guide pamphlet and not let them change the deposit again.

Plus agree that the business should make out the deposit ticket and should know what amount they are depositing before coming to the teller window. Why can't they take the time to work up their own deposits?

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#1853370 - 09/18/13 04:28 PM Re: MSB EDD NanaK
devsfan Offline
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I wonder why your BSA committee does not want to close the account; there really is no justification for putting up with this nonsense and filing a SAR every 90 days. This customer is costing you alot of time and money and I am sure an examiner will want to know why you have not closed the account.

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#1853382 - 09/18/13 04:57 PM Re: MSB EDD NanaK
NanaK Offline
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It's extremely frustrating. I've mailed them "Facts You Should Know" pamphlets and followed up with letters. I agree, it is a huge waste of time and resources, but the BSA Committee will not agree to closing the accounts. As far as the cash deposits, our tellers verify the cash in a larger deposit--normal practice for them.

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#1853488 - 09/18/13 07:21 PM Re: MSB EDD NanaK
devsfan Offline
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Even though your committee will not close the account you should not permit them to change the amount of any deposit.

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#1853590 - 09/18/13 09:51 PM Re: MSB EDD NanaK
NanaK Offline
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If the customer wants to change the amount of the deposit, we would allow them to do that--that would be the customer's choice to make. If they change it to avoid having a CTR filed, then the teller would either call or email the scenario/info to the BSA department for a SAR.

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#1853639 - 09/19/13 12:33 PM Re: MSB EDD NanaK
John Burnett Offline
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The idea that a customer would come in without having counted the cash for a deposit is just so foreign to me. The norm is for the deposit to be counted and the deposit slip to be completed by the customer before bringing the mess to the teller for verification. Tellers should not be filling out deposit slips.

That said, it's just so obvious from your scenario that the customer is deliberately structuring, and that your bank's management has its collective head in the sand when it refuses to show this customer the door.
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#1853901 - 09/19/13 06:41 PM Re: MSB EDD NanaK
Rosie O'Grady Offline
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Isn't this a clear case of aiding and abetting? Or am I missing something?

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#1853941 - 09/19/13 07:18 PM Re: MSB EDD NanaK
devsfan Offline
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IMO you are not missing anything and the bank is wrong in permitting the practice to continue and not closing the account.

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#1854027 - 09/19/13 09:33 PM Re: MSB EDD Rosie O'Grady
NanaK Offline
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No, no. Our tellers are not aiding and abetting. They are quick to report anyone who structures. They just are not going to tell a customer that they shouldn't change their deposit amount/withdrawal amount--it is totally up to the customer how much they want to deposit or withdraw. We will send the "Facts You Should Know" brochures to the habitual structurers and file SARs. The tellers have those brochures at each branch and some branches have been instructed to hand a brochure to a particular customer, and have done so, but they are not aiding and abetting.

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#1854030 - 09/19/13 09:38 PM Re: MSB EDD NanaK
NanaK Offline
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Do any of you have a strict account closure policy after a certain number of SARs are filed?

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#1854093 - 09/20/13 12:33 PM Re: MSB EDD NanaK
MagicCity Offline

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Fort Lauderdale, Florida
Strict - and in our policy.
3 SARs max.

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#1854164 - 09/20/13 02:35 PM Re: MSB EDD MagicCity
NanaK Offline
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Curious if they also have loans with you, how do you handle the loans? Or do you just close the DDA?

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#1854169 - 09/20/13 02:51 PM Re: MSB EDD NanaK
MagicCity Offline

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Fort Lauderdale, Florida
Just the DDAs.

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#1854199 - 09/20/13 03:35 PM Re: MSB EDD NanaK
1 Peter 5:7 Offline
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TX
So what happens if you have auto-debit from the dda set up for loan payments? Doesn't this force you to close or at least modify the loan as well?
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#1854227 - 09/20/13 04:48 PM Re: MSB EDD NanaK
KC Danimal Offline
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Originally Posted By: NanaK
Do any of you have a strict account closure policy after a certain number of SARs are filed?



In our BSA Policy - 3 strikes and you're out.
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#1854235 - 09/20/13 04:54 PM Re: MSB EDD NanaK
Blade Scrapper Offline
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Originally Posted By: NanaK
It's extremely frustrating. I've mailed them "Facts You Should Know" pamphlets and followed up with letters. I agree, it is a huge waste of time and resources, but the BSA Committee will not agree to closing the accounts. As far as the cash deposits, our tellers verify the cash in a larger deposit--normal practice for them.
Give them a printout of recent enforcement actions and CMPs. Maybe that will change their mind.
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