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#2112710 - 12/30/16 05:51 PM Kiting-SAR
PegH Offline
Member
Joined: Jul 2016
Posts: 61
We have a customer whom we suspect is kiting it in excess of $5,000 are we required to file a SAR?

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#2112717 - 12/30/16 06:08 PM Re: Kiting-SAR PegH
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,628
The Country
Well kiting is fraud and you do know the suspect so IF you have a good indication of kiting a safe bet (the only one in my opinion) is to file a SAR. Also, if you haven't already, send this customer packing.

You use the word suspect in your description so it leaves a little wiggle room based upon what you find during your investigation.
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#2112775 - 12/30/16 09:36 PM Re: Kiting-SAR PegH
Tabbetha, CRCM Offline
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Joined: Feb 2009
Posts: 44
Mississippi
We also use the suspected check kiting description in our SAR narratives for customer we suspect of kiting. We immediately begin placing holds and returning any checks that hit the NSF. My opinion is if you know or strongly suspect the customer is kiting you should file the SAR.

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#2112777 - 12/30/16 09:44 PM Re: Kiting-SAR PegH
John Burnett Offline
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John Burnett
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Cape Cod
If you correctly decide to kick the customer to the curb, NEVER use the word "kiting" in your notice to the customer. You aren't obligated to supply a reason.

(1) The bank has decided to end the account relationship.
(2) No additional deposits to the account.
(3) Stop writing checks.
(4) Discontinue use of any ATM or debit card.
(5) We will send a check for the remaining balance on or after [date].

Bare bones.
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#2112869 - 01/03/17 06:09 PM Re: Kiting-SAR John Burnett
Buddy the Elf Offline
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Originally Posted By John Burnett
If you correctly decide to kick the customer to the curb, NEVER use the word "kiting" in your notice to the customer.


We have this in our procedures and make sure everyone knows this but no one has been able to explain *why* is verboten. What is the reason?
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#2112873 - 01/03/17 06:56 PM Re: Kiting-SAR PegH
bcompliance Offline
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Joined: Sep 2014
Posts: 1,234
The first two things that come to my mind are a lawsuit, or inadvertantly informing them that a SAR investigation occured. I could be wrong, but that would be my reasoning to any staff member that asked "why can't I tell them why?"
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#2112914 - 01/03/17 09:38 PM Re: Kiting-SAR PegH
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,628
The Country
Many times no answer is the best answer. Many times it needlessly adds fuel to the fire. As far as I am aware it is the same reason not may employers provide a reason for terminating an employee unless they are legally required to do so. People are pretty sue happy, especially when it comes to banks.
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#2113139 - 01/05/17 03:46 PM Re: Kiting-SAR PegH
Banker57 Offline
Gold Star
Joined: Jul 2010
Posts: 439
Minnesota
Just to recap, we can close accounts in these cases with out advance notice, even if we only "suspect' the activity?

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#2113157 - 01/05/17 04:27 PM Re: Kiting-SAR PegH
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,417
Pulling people out of the ditc...
your agreement should give you the power to close an account at any time for any or no reason...whether you suspect fraudulent activity or not.
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