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#1996144 - 02/13/15 09:39 PM Cash Deposits Involving IOLTA Accounts
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Our FI requires an attorney/law firm to provide their client’s information when depositing funds to an IOLTA account, pursuant to FIN-1989-R005. If they refuse to disclose due to attorney/client privilege, can we refuse the transaction?
Last edited by BSA Aficionado; 02/13/15 09:39 PM.
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#1996147 - 02/13/15 09:38 PM Re: Cash Deposits Involving IOLTA Accounts BSA Aficionado
rlcarey Online
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You have the right to refuse any deposit you want too. BSA rules or not.
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#1996152 - 02/13/15 09:49 PM Re: Cash Deposits Involving IOLTA Accounts BSA Aficionado
John Burnett Offline
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And believe me, it's a heck of a lot better to refuse the transaction and get your customer's knickers in a knot than trying to explain the omission to an examiner.

Attorneys that have studied this matter carefully recognize the "attorney/client privilege" claim for what it is: rubbish. They also recognize that refusing information so as to cause the bank to file an incomplete CTR is a federal offense. Refusing the deposit is doing the attorney a favor.
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#1996155 - 02/13/15 10:00 PM Re: Cash Deposits Involving IOLTA Accounts BSA Aficionado
Elwood P. Dowd Offline
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Trio: Tell Clarence Darrow on the other side of the counter that any attorney receiving more than $10K in cash from a client has to file Form 8300 and disclose the client's information himself. It's a moot point by the time it gets to you.

Make sure you get his name right for the SAR.

P.S. Wait a few days to file the SAR. My best guess is that there will be a few cash deposits to the IOLTA in the next several days and, aggregated, they will equal the amount he originally wanted to deposit. That will give you a couple more boxes to check and a paragraph to add to the SAR narrative.
Last edited by Ken_Pegasus; 02/15/15 03:11 PM. Reason: Add P.S.
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#1996168 - 02/13/15 10:15 PM Re: Cash Deposits Involving IOLTA Accounts Elwood P. Dowd
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We definitely got the name right for the SAR...lol..

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#1996701 - 02/18/15 08:35 PM Re: Cash Deposits Involving IOLTA Accounts John Burnett
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One more question (sorry)..when obtaining client information from the Attorney for the CTR, should this include basic information (primary four - name, address, TIN, DOB) or should it also include occupation, identification, phone number, e-mail address etc.?

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#1996713 - 02/18/15 08:46 PM Re: Cash Deposits Involving IOLTA Accounts BSA Aficionado
Elwood P. Dowd Offline
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Demand everything *critical. The rest is a judgment call, but study Form 8300 to see what items overlap. If I was annoyed enough, I would ask for a copy of the Form 8300 the attorney filed.
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#1996770 - 02/18/15 11:58 PM Re: Cash Deposits Involving IOLTA Accounts Elwood P. Dowd
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Sorry to beat a dead horse. What about instances whereby we have a common conductor depositing funds for multiple clients which in aggregate total over $10,000, but each of their respective amounts are below the threshold? Still gather information for all critical fields, including ID?

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#1996779 - 02/19/15 02:19 AM Re: Cash Deposits Involving IOLTA Accounts BSA Aficionado
rlcarey Online
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Yes - or tell the attorney to head on down the road.
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#1996784 - 02/19/15 02:43 AM Re: Cash Deposits Involving IOLTA Accounts BSA Aficionado
Elwood P. Dowd Offline
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Agreed; "The $28,000 came from 4 different clients and none gave me more than $10,000" is too easy a lie to tell.

Serial questions that actually progress from one to the next are not a problem; they will help other people as well.
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