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#2081105 - 05/31/16 04:06 PM Suspicious Activity
Jennifer Offline
100 Club
Jennifer
Joined: Dec 2014
Posts: 190
Customer requests large amount of cash from their personal account indicating it is for a home purchase. The customer states the seller wants cash only for the purchase. What suspicious activity type - other than transaction out of pattern for customer - would you choose?

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#2081109 - 05/31/16 04:18 PM Re: Suspicious Activity Jennifer
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
I assume that the CTR went off without a hitch, and there are no questions about the source of funds?

I would suggest you consider the possibility that your customer is being scammed, and take some steps to authenticate the home purchase transaction. I would even go as far as reaching out to the customer to say that you are concerned that the customer may be getting swindled and offer to assist the customer in reviewing the documents.

After this research is completed, you'll have a better idea of which, if any, boxes need to be checked on a SAR.

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#2081113 - 05/31/16 04:38 PM Re: Suspicious Activity Jennifer
Jennifer Offline
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Jennifer
Joined: Dec 2014
Posts: 190
I appreciate your response JacPBC. No question on the source of funds - reputable customer. Our staff did prompt and took the steps to discuss the possibility of scam and the risk of the large amount of cash. The customer indicates he was purchasing the home from a relative.

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#2081116 - 05/31/16 04:49 PM Re: Suspicious Activity Jennifer
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 812
NY
If no question as to source of funds and if you think his explanation is reasonable, why file a SAR? Or do you not believe his reason for the cash? Absent other info, I would think transaction out of character would be the correct choice. If customer is elderly perhaps elder financial exploitation? But I think you need more info regarding that.
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#2081144 - 05/31/16 06:21 PM Re: Suspicious Activity Jennifer
Jennifer Offline
100 Club
Jennifer
Joined: Dec 2014
Posts: 190
$160,000 in cash for a home purchase was the red flag for suspicious activity.

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#2081209 - 05/31/16 09:27 PM Re: Suspicious Activity Jennifer
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 4,344
New York City
Ask the customer for a copy of the contract of sale. If it lines up with the $160,000, you may have your answer.
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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#2081900 - 06/04/16 11:37 PM Re: Suspicious Activity Jennifer
Retread Offline
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Retread
Joined: Oct 2003
Posts: 2,548
Southeast
I'm with ACBbank on this one. If the purchase is from a relative and the relative is insisting on cash, there could be some attempt by the relative to disguise the true sale price. You might also check the tax collector's web site to see the value of the property compared to the sale price.
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