I know the answer to this but I need some back up - used car dealer is depositing cash just under the reporting threshold on multiple days. He is provided the CTR brochure and in response he brings in documentation to support the cash deposits and states that he is writing the name on the deposit ticket of who brought the cash in. The name on the deposit ticket is the same for the $9,800 in cash for three consecutive days, so it appears the customer's customer is structuring the cash deposits to the dealer (which is irrelevant because the dealer would have to file Form 8300). What is the bank's obligation for SAR reporting in this instance?

If you believe that your customer is structuring then you should file a SAR and put as much information in the narrative as possible, including what your customer stated, the names on the deposit tickets, etc. I would think that you would have a hard time explaining a no SAR decision for cash deposits of $9,800 on 3 consecutive days. I would also mention that you provided the CTR pamphlet but the structuring continued.

Your customer apparently is not structuring, but your customer's customer is?

I'm glad you know the answer to your question. I am less confident. I do not know if the prohibition against "structuring" applies to the Form 8300 as it does the CTR. I've never had reason to look it up. Moreover, you have no records that indicate illegal activity and your bank is not involved. Your contribution to the process would be to tell your customer that it must file the Form 8300 in accordance with the instructions...

My solid suggestion is that you write a memo to file explaining "why" if you are not filing a SAR on your customer.

Even though it appears to be the customer's customer that is structuring?

Or you can file the SAR and include your customer's explanation in the narrative. If your customer is giving you any information on their customer, include that information in your SAR as suspect and in the narrative.

I personally would not want to try and defend the "no SAR" decision to an examiner.

I would welcome the opportunity...

I just got off the phone with FinCEN who said that since the potentially structured transactions are occurring through our institution, we have an obligation to file.

Interesting. My understanding has always been that the Helpline's prime directive is that they do not answer questions on whether a bank should or should not file a SAR. Spock's not even cold in his grave and things are already going to [censored].

Someone, somewhere along the way, really should verify that there is a legal prohibition against avoiding the filing of the 8300. Assumptions do things to all of us.

The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. “Structuring” means breaking up a large cash transaction into small cash transactions.

Maybe your customer is making up his customer so you will think it isn't him?

This is a great discussion- lots of good points to consider.

Regarding the question of whether or not your customer is complicit in the structuring, or is simply an innocent recipient of his customer's structured transactions:

Consider your customer's history. If your customer typically brings in cash deposits in excess of $10,000 when he takes in enough cash to do so, then his story (blaming his customer) becomes more credible.

The 8300 requires the business to aggregate cash transactions in connection with a single business transaction, even if the cash is received over several -- even widely spaced -- days. And more than just cash transactions get reported on these forms.

I think it's a stretch to file a SAR if the facts in the posts are accurate. But, as NotDoneYet asks, could it be that the bank's customer is the one doing the structuring, fabricating the "evidence" concerning the business's customer?