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#1959195 - 09/04/14 02:09 PM BSA "Training" for Customers
mrosenberg Offline
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Recently our BOD brought up the idea of providing training/guidance to customers in regards to BSA-related topics.

Has anyone ever been involved in developing training for customers?

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#1959289 - 09/04/14 03:33 PM Re: BSA "Training" for Customers mrosenberg
Elwood P. Dowd Offline
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Very few of your customers have any BSA responsibilities. If your board is considering the filing of Form 8300 a BSA responsibility, note that it is not the form your bank files and I doubt seriously that anyone in your bank could tell a customer when the form should be filed. (The filing trigger is different than the one on the CTR.)

Respectfully, this is not a good idea...
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#1959313 - 09/04/14 03:56 PM Re: BSA "Training" for Customers mrosenberg
mrosenberg Offline
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It wouldn't be training on customers' BSA responsiblities, but more so training to inform them of BSA in general and why certain information is requested.

I agree, I am not a fan of the idea!

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#1959324 - 09/04/14 04:07 PM Re: BSA "Training" for Customers mrosenberg
Elwood P. Dowd Offline
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You're filing SARs on structuring and the board thinks your customers would not structure if they knew it was a crime and that you would report it?

We live in a country where people are entitled to know what the law is. The best way to inform customers about the law is to make the FinCEN Pamphlet available to them. That's the most effective, least dangerous customer training effort available. Hand it out when customers ask questions. Do an annual mailing to all cash intensive customers. Get it into their hands.

Going beyond that could morph into "assisting in structuring" at any time; e.g. you have 4 customers sitting around the table and one asks: "How does your bank know that I made deposits at two different branches on the same day or at the same branch two days apart?" I can think of a dozen more questions, but hopefully that one alone illustrates that you are opening Pandora's box. You said this meeting was to explain things. Now, you are refusing to explain things.

P.S. A different tack for your response to the board: A customer who is intentionally avoiding CTR filing requirements obviously does not need to be trained on CTR filing requirements - we have the best possible evidence that they already know what they are. So all the customer doesn't really understand is the SAR requirements. That's thin ice and there is no point in jumping up and down to see how thin it is.
Last edited by Ken_Pegasus; 09/04/14 08:06 PM. Reason: Add P.S.
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#1959570 - 09/05/14 01:15 PM Re: BSA "Training" for Customers mrosenberg
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Ken, I LOVE the idea of mailing the pamphlet to cash intensive customers or those who repeatedly structure!!!! A reduction is SAR filings would be great!

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#1959580 - 09/05/14 01:39 PM Re: BSA "Training" for Customers P*Q
Elwood P. Dowd Offline
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Note the date you did the mailings. If the little darlins continue to structure and you continue to file SARs indicate that the mailing was done and that date that it was done in the SAR narrative.

Law enforcement people tremble with excitement when they can document that the customer knew or should have known that structuring is against the law.
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#1960747 - 09/10/14 03:39 PM Re: BSA "Training" for Customers mrosenberg
charlied Offline
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Is there anyone on here that already does or has mailed the FinCEN CTR pamphlet specifically to customers that are structuring transactions to avoid CTRs? Did it have any effect? Did you include it in a statement or mail it by itself? Did the customer ever contact the bank to ask why they received it? And if so, what did you tell them?

Sorry for all the questions, but I would be very interested in doing something like this.

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#1960804 - 09/10/14 04:45 PM Re: BSA "Training" for Customers mrosenberg
MagicCity Offline

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We hand it to them at the teller line.
It has stopped some of the activity.
If they ask why we are giving it to them, we simply say that we give it to all cash customers.

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#1961115 - 09/11/14 01:25 PM Re: BSA "Training" for Customers mrosenberg
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We have one customer who structures by using several $10,000 bank checks (personal customer) that I want to send this to but can't say "cash intensive" customers.

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#1961126 - 09/11/14 01:47 PM Re: BSA "Training" for Customers mrosenberg
rlcarey Online
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How can someone structure using checks???
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#1961191 - 09/11/14 03:15 PM Re: BSA "Training" for Customers mrosenberg
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I.E. Taking a $50,000 bank check, exchanging for four $10,000 bank checks payable to themselves, and taking $10k in cash. Then cashing those other $10,000 checks within a short period. And repeat with another $50k check, yadda, yadda, yadda.
Last edited by P*Q; 09/11/14 03:16 PM.
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#1961193 - 09/11/14 03:16 PM Re: BSA "Training" for Customers mrosenberg
rlcarey Online
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Well, that is totally self-inflicted if you ask me. The transactions should be just flat refused. They deposit the official check or they cash it - end of story.
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#1962901 - 09/18/14 05:22 PM Re: BSA "Training" for Customers mrosenberg
Snowgirl Offline
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We have had customers who were structuring, kiting, etc. We contact the customer and tell them they are conducting activity that is considered illegal. We don't spell out to them that it is reportable, simply that our system detected a possible illegal activity occurring. We file our SAR unknowingly to the customer and if the activity continues, we close them for illegal activity.

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#1962930 - 09/18/14 06:02 PM Re: BSA "Training" for Customers mrosenberg
edAudit Offline
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I would not use the word illegal when conversing with the customer.
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#1962932 - 09/18/14 06:05 PM Re: BSA "Training" for Customers edAudit
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Originally Posted By: edAudit
I would not use the word illegal when conversing with the customer.


Agreed. Leave that up to the courts to decide.
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