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#1891449 - 01/28/14 10:11 PM SAR Filing on an old item
CrashDavis Offline
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Joined: Jun 2005
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I need your opinion on an item. We are a small bank and have a manual system for picking suspicious activity. Presently I pull cash activity of $5,000 or more and determine if activity is suspicious. This is usually over the past 6 months and we review over a time period. Sometimes this results in finding older transactions. We found a tranction where a non-customer came in on separate days and cashed one check for $5,000 and cashed another check for $5,374 on another day. The check was drawn on another bank from a business. The check was dated the same day. This occurred in March 2013. This is the only time this occurred. Should I file a SAR even though it is about a year old transaction or would it be ok to not file but monitor cash checks to determine if person does this on a reoccurring basis.

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#1891489 - 01/29/14 10:32 AM Re: SAR Filing on an old item CrashDavis
Elwood P. Dowd Offline
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Elwood P. Dowd
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If you believe the two checks reflect an attempt to structure the transaction in an effort to avoid the filing of a CTR, then you have 30 days in which to file a SAR. The time frame for filing a SAR begins when with the "initial detection" of the reportable activity without regard to when the activity actually took place.

The passage of time since the suspicious activity occurred does not eliminate a SAR filing responsibility. Moreover, a conscious decision not to file an otherwise required SAR is a crime, not just a violation of law.
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#1891528 - 01/29/14 02:26 PM Re: SAR Filing on an old item CrashDavis
CrashDavis Offline
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Thanks Ken. Appreciate your advice. I thought the time period started when detected not when the transaction took place.

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#1891896 - 01/29/14 10:41 PM Re: SAR Filing on an old item CrashDavis
AquaMarine Offline
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Your bank allows the cashing of checks to noncustomers? Any amount over $1,000 is considered MSB activity.

Another thing to consider - Per FinCEN guideline, if the transactions aggregating $5,000 or more where a suspect can be identified; transactions aggregating $25,000 or more regardless of potential suspects.

While the activity may be deemed as suspicious and assuming you have no ID info on the conductor, the aggregate amount does not fall within the threshold provided in the guideline.

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#1891910 - 01/30/14 01:11 AM Re: SAR Filing on an old item CrashDavis
edAudit Offline
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edAudit
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I would think that the person when cashed the check would be the suspect. I can not imagine that they cashed checks over 5000. With no id at the time of cashing.
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#1891972 - 01/30/14 02:34 PM Re: SAR Filing on an old item CrashDavis
CrashDavis Offline
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The suspect was the person who cashed the check. It was an individual. We did get ID. Also the person who cashed the checks was a customer at one time. He did not leave on bad terms either. I would not consider the person who cashed the check a MSB because the check was payable to him from a sale of items.

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#1892356 - 01/30/14 09:51 PM Re: SAR Filing on an old item CrashDavis
MyScamper Offline
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If I am reading the orignal post correctly, you cashed 2 checks for a non-customer drawn on another bank. Why would you do that when you have zero recourse? Did I read this wrong?

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#1892393 - 01/30/14 10:57 PM Re: SAR Filing on an old item CrashDavis
CrashDavis Offline
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You did not read this wrong. The individual did not have a checking account with the bank but had a IRA. The staff knew the customer and the family is well respected in the community. Also, officer gave approval for this. I understand about no recourse but officer felt comfortable cashing the checks. We had all the necessary ID.

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#1892838 - 02/01/14 09:01 PM Re: SAR Filing on an old item AquaMarine
John Burnett Offline
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John Burnett
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Originally Posted By: AquaMarine
Your bank allows the cashing of checks to noncustomers? Any amount over $1,000 is considered MSB activity.



Lest anyone be misled by that statement into running off to register with FinCEN as an MSB, it's simply not true when the party doing the check cashing is a bank.
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