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#2241386 - 08/20/20 06:49 PM Non customer on-us ck cashing & MIL purchase
Madawaska Offline
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Posts: 108
VA
Let's say a non-customer comes into a branch with 2 checks to cash issued by one of our customers. The 2 checks total $10,600. The non-customer takes $600 in currency and then purchases a bank check in the amount of $10,000 payable to himself. Later than same day, the non-customer goes to a different branch and cashes the bank check for $10,000.

A CTR is being completed for negotiable instruments cashed $10,600.

My question is, technically, is the purchase of the cashier's check a MIL entry, in that, the original on-us checks were "cashed" and the subsequent purchase of the cashier's check 'with currency'? Or since no actual cash was exchanged (or walked into the branch) during the transaction, it does not qualify.

Aside from my MIL question, this type of activity would be considered highly suspect. What is more concerning is that if the non-customer did not cash the purchased bank check the same day, this would have gone unnoticed and undetected. It would appear to be purposely done to avoid CTR filing which would open a whole new can of worms.

MIL input appreciated. Thanks!

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#2241388 - 08/20/20 06:57 PM Re: Non customer on-us ck cashing & MIL purchase Madawaska
BrianC Online
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Illinois
The non-customer did not walk into the bank with cash to purchase a monetary instrument, they walked into the bank with checks. The monetary instrument purchase is not subject to recordkeeping requirements.

Now you get to consider filing a SAR and consider not permitting negotiable instrument sales to non-customers.
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#2241437 - 08/21/20 02:27 PM Re: Non customer on-us ck cashing & MIL purchase Madawaska
John Burnett Offline
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Cape Cod
The CTR would not be called for, either, since there was no cash transaction in excess of $10,000. And that is what triggers the SAR (as you and Brian have both suggested) because there is structuring involved.
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#2241439 - 08/21/20 02:51 PM Re: Non customer on-us ck cashing & MIL purchase Madawaska
BrianC Online
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BrianC
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Illinois
Quote
The non-customer takes $600 in currency

Quote
Later than same day, the non-customer goes to a different branch and cashes the bank check for $10,000.


John, the way I read these two statements from the original post, a CTR would be required for $10,600.
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#2241551 - 08/25/20 03:25 PM Re: Non customer on-us ck cashing & MIL purchase Madawaska
John Burnett Offline
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Cape Cod
Brian, to paraphrase you, it's always good to have another set of eyes look at things. I must have been at the beach when I answered earlier. I'll correct myself here:

Clearly, the bank had knowledge of the two cash-out transactions totaling $10,600, so a CTR would be required. However, the customer's transaction pattern strongly suggests an attempt at structuring and may warrant a SAR filing.

That said, it's also possible the bank would not have connected the two transactions in the two branches, not even after the fact. But cashing a cashier's check for $10,000 that was issued the same day by the same institution should be picked up at some point. If the individual was attempting to duck the CTR filing, it was a pretty clumsy attempt.
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#2241583 - 08/25/20 08:57 PM Re: Non customer on-us ck cashing & MIL purchase Madawaska
HappyGilmore Offline
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Pulling people out of the ditc...
Quote
The non-customer...then purchases a bank check


why any bank today would sell to a non-customer baffles me...

yes to CTR, yes to SAR, yes to reviewing policies and procedures concerning non-customers
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