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#2212209 - 04/26/19 02:05 PM Client hoarding official checks
Cher Offline
Member
Joined: Oct 2003
Posts: 98
Florida, USA
we have a long time business client who has over $250K in outstanding official items that they have purchased over time. The source of funds is not in question as they were purchased with funds from the business which is an s corp and thus the revenue is reported there. Had they been purchased with cash that would be a different kettle of fish. She said she is holding on them for a rainy day and we have made it clear that she will not be able to exchange those for others when they become stale and escheatable. I do not feel that this is illegal nor deserving of a SAR at this time, but other officers in the organization disagree. I appreciate thoughts from others who may have experienced a similar issue.

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#2212225 - 04/26/19 03:44 PM Re: Client hoarding official checks Cher
Sunshine Lady Offline
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When we had our exam from the FDIC in January of this year, we were told that if the official item is outstanding over 3 months, we have to call the customer and file a SAR if you feel their explanation does not hold water. If we do not file a SAR, then we have to document our reason and now we have to do this annually.
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#2212229 - 04/26/19 03:59 PM Re: Client hoarding official checks Cher
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,644
The Country
There is nothing illegal with holding onto official checks. There is also nothing illegal with withdrawing cash and sticking in under your mattress. Sunshine Lady's examiner is out of line and there is absolutely no reason to file a SAR or call a customer just because an official item hasn't yet been negotiated.
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#2212231 - 04/26/19 04:21 PM Re: Client hoarding official checks RockChucker, CAMS
bcompliance Offline
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Posts: 1,244
Originally Posted By RockChucker, CAMS
There is nothing illegal with holding onto official checks. There is also nothing illegal with withdrawing cash and sticking in under your mattress. Sunshine Lady's examiner is out of line and there is absolutely no reason to file a SAR or call a customer just because an official item hasn't yet been negotiated.


I agree
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#2212261 - 04/26/19 09:00 PM Re: Client hoarding official checks Cher
TryingtoComply Offline
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Joined: Apr 2013
Posts: 1,921
The West
I believe I have provided this information before in this forum, but we have several customers that use cashier's checks as a means to control their compulsive spending. They purchase the checks and keep them in their SDB.

It is NOT illegal. If the source of funds used to purchase the items was legit, then document it and be done with it. And I agree. Sunshine Lady's examiner is out of line to create this type of unnecessary work.

Some examiners make stuff up as they go along. For goodness sakes fight back when examiners make these absurd requirements!! Otherwise it makes life miserable for the rest of us. smile
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#2212288 - 04/29/19 02:01 PM Re: Client hoarding official checks Cher
Sunshine Lady Offline
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Posts: 623
I agree also, but they wrote it as a recommendation, so I am going to comply. Yes, I do think they are making up stuff as they go. Have been in this business almost 40 years and it threw me for a loop.
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#2212300 - 04/29/19 03:19 PM Re: Client hoarding official checks Sunshine Lady
HappyGilmore Offline
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Pulling people out of the ditc...
Originally Posted By Sunshine Lady
I agree also, but they wrote it as a recommendation, so I am going to comply. Yes, I do think they are making up stuff as they go. Have been in this business almost 40 years and it threw me for a loop.


i would ask them for a citation as to why this is a recommendation. I rarely implement "recommendations" as those are nothing but busy work.
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#2212524 - 05/01/19 03:21 AM Re: Client hoarding official checks Sunshine Lady
JacF Offline

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Originally Posted By Sunshine Lady
I agree also, but they wrote it as a recommendation, so I am going to comply.


Please don't. I say this on behalf of banks everywhere who are burdened with (sometimes ridiculous) "best practices" that we are expected to follow, that all started with an examiner going off script or applying a once-remedial requirement out of context.

To this, I will add that we, as an industry need to start taking SARs seriously again. And by "taking seriously" I don't mean "filing them by the truckload". Rather, I mean consider them thoughtfully and file on the truly suspicious stuff. Like we used to back when SAR filing was an investigative function, and not an academic one.

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#2212536 - 05/01/19 01:09 PM Re: Client hoarding official checks Cher
HappyGilmore Offline
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Posts: 19,478
Pulling people out of the ditc...
^^^ here here!
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#2212546 - 05/01/19 02:38 PM Re: Client hoarding official checks Cher
Sunshine Lady Offline
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I am so glad that everyone is able to express their opinion, but one does not fit all. I know why some people do not want to post here because they feel attacked for trying to COMPLY whether anyone agrees or not. None of you are sitting in my shoes or know what was said in our exit meeting so please before everyone get on their high horse think about what you say.
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#2212558 - 05/01/19 03:50 PM Re: Client hoarding official checks Cher
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,478
Pulling people out of the ditc...
Sunshine Lady - i don't feel that anyone replies with the mindset of sitting on their high horse, they are offering opinion based on their own situation, and offering suggestions to other posters based on what was asked and their own experience. perhaps in the future if you are only looking for people to reply if they agree with you, you should put that in your original comment whereby others who may have a different experience or take would then bypass offering assistance.

i've found that many in BOL have strong convictions on certain topics, less so on others, and no clue on yet others (myself included in this), and this is a great place to get differing opinions, as well as confirmation on issues if people think you are heading in the proper direction. I don't believe anyone has ever said one size fits all, and rarely is there a thread opened where 100% of the people posting agree.

It's the internet, you're going to get replies that may or may not agree with your own, but rarely do those in BOL make their comments with the intent of belittling or putting others down, or preaching from on high. They are sincere opinions or suggestions based on a wide variety of experiences, done with the intent of making other bankers work lives easier.
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#2212642 - 05/02/19 03:18 AM Re: Client hoarding official checks Cher
JacF Offline

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Joined: Nov 2001
Posts: 6,719
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Sunshine Lady- I certainly didn't intend my post as an attack, and I hope you did not construe it as such.

You are right- we were not in your exit meeting, and we don't know what was said. We only know the information that you provided (an examiner wrote you a made-up recommendation, and you're going to implement it, because it is written), and I based my response on that information alone.

From your response, it sounds like there are other complexities that are informing your decision to accept the examiner's recommendation. Understandably, those matters are between you, your examiner, and your employer.

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