Skip to content
BOL Conferences
Thread Options
#2178867 - 05/19/18 03:50 PM Dumb question-would you file a SAR on a deceased
Daisy Doodle Offline
Diamond Poster
Joined: Feb 2014
Posts: 1,030
Southern U.S.
customer. We have a 58 year old single man with a bunch of family money who owns a weird little boutique 'car dealer' business who we have filed on and counseled with a few times for really blatant structuring and excessive cash activity. We were about to start working up a case file on him again when I got word he passed away quite recently. His case files are a pain, as his activity is complex, so lots of work to do the case file which I would be happy not to do. We've never identified anything specifically illegal other than the structuring, but his activity is quite unusual and 'cashy' so I wouldn't swear to that either.

Very curious about the details of his passing, but so far, just a death notice.

Would you proceed with the case file, wait for more details on how he died (mob hit, vs DUI car accident) or just close the case file and be done with it.

Return to Top
BSA/AML/CIP/OFAC Forum
#2178875 - 05/21/18 11:37 AM Re: Dumb question-would you file a SAR on a deceased Daisy Doodle
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,658
This is not a dumb question at all. As the rules don't specifically provide an answer on how SARs apply to a deceased customer, it can be confusing as to what is actually required. That said, the rules don't exclude deceased customers from SAR filings and we can only assume the silence on the topic implies applicability - at least, this is the conservative approach that will ensure compliance.

As your deceased customer was the one to conduct the transactions, I see no reason why you would not file a SAR listing your deceased customer as a suspect and including the fact that the customer is now deceased in the narrative. If it were me, I would attempt to file the SAR as late in the process as the rules permit so that I could include any applicable information regarding his death, with the goal being to not need to file a follow-up SAR if new information were to come in later in the process.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

Return to Top
#2178931 - 05/21/18 04:36 PM Re: Dumb question-would you file a SAR on a deceased Daisy Doodle
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
If a trigger was pulled, you file. The only issue is do you have enough of a window before being required to file to see if the activity changes; i.e. was the activity actually attributable to the decedent or did it continue after his death.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2178990 - 05/21/18 07:05 PM Re: Dumb question-would you file a SAR on a deceased Daisy Doodle
Daisy Doodle Offline
Diamond Poster
Joined: Feb 2014
Posts: 1,030
Southern U.S.
In case anyone is curious, the obituary was posted. It did not describe the manner of death, but our customer's family requested donations to an addiction rehab facility in lieu of flowers. Guess that seals the deal on reporting all those cash outs.

Return to Top
#2179052 - 05/22/18 01:42 AM Re: Dumb question-would you file a SAR on a deceased Daisy Doodle
Ofur Offline
New Poster
Joined: Jul 2015
Posts: 5
MA
We had a similar situation a couple of months ago. During a 90 day review, activity had continued, obit discovered, individual had passed towards the end of the period. We filed.

Return to Top
#2179076 - 05/22/18 01:45 PM Re: Dumb question-would you file a SAR on a deceased Daisy Doodle
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
SARs on a decedent can provide LEOs with info on past acts that may implicate other bad actors. In this case, structuring isn't generally the type of crime that involves conspiracy and major criminal networks, banks shouldn't put themselves in the position of deciding what's relevant to LEOs and what isn't.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z