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#1925646 - 05/22/14 03:48 PM Possible Structuring and SAR Filing
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
I have a question from each of you regarding possible structuring. I know this has been asked before but here goes.

We have a customer that I am reviewing. On 04/11/2014 he made a deposit of $10,321.98 with a check from his investment firm. On 04/14/2014 he withdrew $9,000.00. On 04/14/2014, he made a $12,000 deposit with a check on another bank which was for 10 acres of land. Then on 04/15/2014 the customer withdrew $9,000.00. I reviewed for three months of activity and this is the only time this has occurred. My question is should I file a SAR for possible structuring.

I had one examiner say do not file a SAR if it is a one time event. Other examiners have said do file.
Thanks

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#1925684 - 05/22/14 04:30 PM Re: Possible Structuring and SAR Filing CrashDavis
kw004h Offline
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Joined: Nov 2009
Posts: 219
Chicagoland, IL
You have two transactions just under the threshold conducted on consecutive days. Do you have any other information about these transactions that leads you to believe it's not structuring to avoid a CTR?

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#1925694 - 05/22/14 04:37 PM Re: Possible Structuring and SAR Filing CrashDavis
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
I do not. He received money and deposited to account and then withdrew $9000 each on the next day. I say to file a SAR but one time I file a SAR like this and a State examiner said I should not have. He said it was not necessary to file only if the pattern continured.

I did not agree. I am going to file because if we get another examiner that has another opinion we could be critized.

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#1925723 - 05/22/14 05:18 PM Re: Possible Structuring and SAR Filing CrashDavis
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Quote:
I had one examiner say do not file a SAR if it is a one time event.


That's incorrect; there are no freebies for structuring.
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#1925865 - 05/22/14 07:34 PM Re: Possible Structuring and SAR Filing CrashDavis
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
Ken, I agree with you. I did not think there were any freebies.

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#1926041 - 05/23/14 12:45 PM Re: Possible Structuring and SAR Filing CrashDavis
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,907
Galveston, TX
State examiners are notorious for providing terrible BSA/AML related advice. When was the last time you saw someone written up in a report for filing too many SARs? I'm not suggesting you file defensively. I'm suggesting in cases such as this, there is no legitimate business reason for such transactions that could ever be explained even if you asked the customer. The customer of course would make something up. I see more time wasted by banks on these one-off issues, such as discussions, more research, arguments in SAR committees, etc. All that does is cost the bank even more money. File and be done with it.
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#1926058 - 05/23/14 01:03 PM Re: Possible Structuring and SAR Filing CrashDavis
Little Miss BSA Offline
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Little Miss BSA
Joined: May 2007
Posts: 1,185
Miami
I think you not only have to think of structuring but also velocity. Have you gone back to his history to see if you find other instances of this pattern of activity?
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#1926069 - 05/23/14 01:38 PM Re: Possible Structuring and SAR Filing CrashDavis
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
rlcarey, I agree with you completely and I am going to file.

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#1926197 - 05/23/14 03:33 PM Re: Possible Structuring and SAR Filing CrashDavis
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,792
Cape Cod
There's a statement in the BSA/AML Exam Manual to the effect that examiners should not question a bank's reasoned decision not to file a SAR. The corollary of such a statement is that a decision to file a SAR should not be questioned, either.
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