Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#302672 - 01/12/05 06:11 PM Suspicious Customer, Please advise.
kdlmit Offline
100 Club
kdlmit
Joined: Sep 2002
Posts: 131
A customer went to one of our branches to cash a foreign check. The teller told him that she could not cash the check since it was not drawn on us and he did not have the funds in his account to cover the check if it were returned. The customer then deposited $2000 in cash into his checking account to cover the check. Teller call the bank it was drawn on and was told it was good at this time so she cashed the check. A few minutes later the customer went to another branch and tried to w/d the $2000 he just deposited from his account. His account has been opened 40 day. His actions seem very suspicious. Does anyone have any advice on how to handle this. According to Reg CC placing a hold on a cash deposit is not an option.

Return to Top
Operations Compliance
#302673 - 01/12/05 06:36 PM Re: Suspicious Customer, Please advise.
kdlmit Offline
100 Club
kdlmit
Joined: Sep 2002
Posts: 131
Just to ad another twist, after the second branch told him that they had to check to see if they could give him the $2000 that he cashed, the customer said that he did not have time to wait and left. Now I am told that he just went back to the second branch, deposited another $2000 in cash and got a cashier's check.

Return to Top
#302674 - 01/12/05 06:58 PM Re: Suspicious Customer, Please advise.
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,866
Pulling people out of the ditc...
If this all happened today, I'd call the customer back in, give him the original check deposited, as well as a cashiers check for his balance, and ask him to take his business elsewhere. Further, I'd seriously consider filing a SAR. ALl of his activities sound very starnge. If he had $2,000 in cash, and the check was for $2,000, what good does depositing the cash so he can cash the check do? It is a net loss/gain of $0.

And you can put an extended hold on the foreign item.
_________________________
Providing alternative truths since the invention of time

Return to Top
#302675 - 01/12/05 06:59 PM Re: Suspicious Customer, Please advise.
TomS Offline
Gold Star
Joined: Jan 2004
Posts: 318
USA
I don't know that the first transaction is all that suspicious, He deposited the cash because he had to in order to get the check cashed, then he tried to pull a fast one by getting his cash deposit back from another branch. In other words, he wanted to have his cake and eat it too.
_________________________
CRCM, CAFP, DAD

Return to Top
#302676 - 01/12/05 07:09 PM Re: Suspicious Customer, Please advise.
Comply 101 Offline
Platinum Poster
Comply 101
Joined: Jul 2001
Posts: 708
As a procedure, I would have sent the check for collection via the USPS. I remember reading about a scam involving Canadian checks. Foreign banks do not have the same time table as US banks to return a counterfeit check. It could come back months later after all Reg CC holds have fallen off.
_________________________
CRCM CAMs

Return to Top
#302677 - 01/12/05 08:52 PM Re: Suspicious Customer, Please advise.
Anonymous
Unregistered

Quote:

I don't know that the first transaction is all that suspicious, He deposited the cash because he had to in order to get the check cashed, then he tried to pull a fast one by getting his cash deposit back from another branch. In other words, he wanted to have his cake and eat it too.




Who just whips out 2 grand in order to cash a check...kinda suspicious to me.

Return to Top
#302678 - 01/12/05 09:21 PM Re: Suspicious Customer, Please advise.
HRH Dawnie Offline
Power Poster
HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
The teller helped him structure the transaction so in some way's you leave yourself to helping the client become suspicious.

The amount of cash in your account has nothing to do with the value of a relationship. The teller told him he needed $2,000 and he put that much in. Obviously he didn't want to do that originally or he'd have filled out a deposit slip.

The average balance and legnth of relationship are how you should have judged the ability to deposit without hold (or collection). Going on cash that is not held is silly.

So yes, he sounds somewhat suspicious, but heck, ya'll helped him get there by structuring him into the deal.
_________________________
Dawn Coursey VP/CRA Queen

CRA Rating is in...Oh who cares...I'm home with the baby.

Return to Top
#302679 - 01/31/05 05:51 PM Re: Suspicious Customer, Please advise.
mmason Offline
Gold Star
Joined: Nov 2001
Posts: 447
New England
Quote:

According to Reg CC placing a hold on a cash deposit is not an option.




But you can place a hold on a corresponding amount of funds that are already in the account.

Return to Top

Moderator:  Andy_Z, John Burnett