What questions should be asked when you suspect the client of fraud?

Client makes cash deposits - all $100 denominations - all under the threshold to a tune of $92,000 in 6 weeks. Staff says there is a language barrier and have asked the source of these funds and she just says personal. So Structuring, unknown source of funds - she owns a food market with a small restaurant inside. Her husband owns a construction company. She has 2 personal accounts; no business - they have asked if these finds are from a business and did she want to open a business account - again her reply was personal. The account with the cash deposits was opened in June 2020 - the other has been opened for about 1 1/2 years. In addition, the CSR in looking at her through the drive through sees she has a lot more cash than she is depositing with us - again it appeared to be all $100 denominations. No CTRS.

Looking for clear questions that the Branch Manager can ask this client. As our lobbies are not opened, I have suggested the next time she comes through to ask her to come in. And then she can question her to see what she says. There is some pushback: I have eaten at her restaurant, etc. and does not want to close her accounts as Compliance has suggested.

Again looking for some questions that I can give the manager to ask that will provide some much needed information about these cash transactions - or not. Thanks.

"and does not want to close her accounts as Compliance has suggested."

Whoever that is, I then suggest you let them come up with the questions. Because whoever that is, they apparently have the power to make the decisions and regardless of the answers, any decisions will be left with up to them. Or - maybe ask one of your board members that have the ultimate responsibility and risk for maintaining the account.

"- all under the threshold to a tune of $92,000 in 6 weeks"

All in a personal account and they do not want to tell you the source of funds?

If they can successfully run 3 businesses and navigate the permits for two food service businesses (department of health) and a construction companies (permits) it seems impossible to have that much of a language issue to answer a simple question about SOF.

Close it and be done with it. Let Compliance do their job to protect the bank.

In our shop this account would be closed simultaneously with the SAR filing. The BSA or Compliance Officer needs to get with executive management and/or the Board and clearly delineate who has the responsibility to close accounts for BSA/AML reasons. This is not the decision of branch staff nor of any one mid-level or high-level manager who supervises branch managers. As sales people, they aren't qualified to make that kind of decision.

A customer clearly structuring, and evading taxes of many kinds (payroll tax, income tax, etc.) on her businesses, and being difficult about answering questions = a former customer.

One of the BSA/AML exam procedures in the FFIEC BSA/AML Exam Manual is determining whether a bank's policies, procedures, and processes include procedures for "considering closing accounts as a result of continuous suspicious activity."

When a customer continues to exhibit suspicious activity and multiple SARs are filed, the cost (and risk) of maintaining the account is very likely to exceed any benefit derived from having the account in the bank. Policy should dictate the criteria for mandatory account closure, and can take into account any loan relationships, etc. Senior management should ensure that branch managers and lenders can't override policy in this arena.

Of course the other question that has not been answered is where is all the cash deposits going? Just sitting there or moving on to greener pastures? There is always two sides to the equation.

What transactions are the cash deposits funding? This could be structuring and a combination of tax evasion or something much worse.

surely someone in BSA or Compliance has escalated this comment to the person's boss for their opinion. if not, that needs to happen today, along with the decision to close the account. I would seriously consider why the person stating the above remains employed as well...

Orig. Anonymous - I am the BSA Officer and have sent it up the chain including the CSR's supervisor - waiting for final. The cash is just sitting there.

A CSR should not be making this call.

Take note of the policy suggestions above- if your BSA policy gives you the authority to close a customer's account, use it. If it doesn't, add the language to your policy as soon as possible.

Either side, if it appears to be structuring to you you should file if not don't file. Where the funds are going will just be another line in the narrative.

Language barrier; there are several sources for interpreters.

Then there's no question as to how she will or won't answer your questions.