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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A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley