We had a customer that withdrew over $50,000 in cash from his/her Safe Deposit Box to purchase a monetary instrument payable to his/her self.

The customer only gets into their box 1 or 2 times per year, the box has been open for 8 years. Spouse just passed away within the last month.

Is this a SAR worthy situation?

I would give it a few days to see if the MI clears. Also, I would check to see if I saw cash outs from their accounts that would provide a source of funds. If you have no source of funds, and the check doesn't clear, I would likely file.

We had a customer that withdrew over $50,000 in cash from his/her Safe Deposit Box to purchase a monetary instrument payable to his/her self.

How in the world would a bank know this is actually the case?

Did you ask the customer for an explanation as to where the funds came from?

And "my safe deposit box" isn't a source of funds.

The customer was asked by a bank representative and he/she stated it was from her father's safe deposit box, she had found it in the box(at our bank). It was the father that had died, not the spouse as I had stated earlier (SORRY).

The monetary instrument has been deposited into his/her own account now at our bank.

wait, so you allowed someone to access the safe deposit box of another customer, one who was deceased? Are they listed on the agreement as co-owner or having access? i'm a little confused here.

Co-owner of a box was allowed access.

Sounds like it might should have gone into an estate account. Hope she's the only heir!

The estate may have been under the state's threshold that requires probate. In CA an affidavit of next of kin allows access to assets under $150,000.

This is an interesting situation as both technically had a right to the contents of the box.