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#570178 - 06/20/06 04:18 PM SAR??
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
Is this SAR worthy??

A subcontractor of one of our customer comes in and gets cash (we file a CTR) but we know that he/she is turning around and taking that cash to pay his/her workers that may not be legal and will not be paying taxes.

Is this avoidance of IRS reporting or other issues...just wants some thoughts on this.

Thanks!

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#570179 - 06/20/06 04:30 PM Re: SAR??
Pinkie CRCM Offline
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Joined: Aug 2003
Posts: 399
KY
We had the exact same situation a couple of years ago, only ours would never make it over the CTR threshold. We did file a SAR under the context of structuring, as the "foreman" would present separate checks that we know were written on the same day, but were cashed over a 3 day period. Amounts ranged from $8800 and $9500.

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#570180 - 06/20/06 04:34 PM Re: SAR??
MagicCity Offline

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MagicCity
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
If your question is because of the legality of the workers, then I would not file.
Bankers are not ICE agents.

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#570181 - 06/20/06 04:34 PM Re: SAR??
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
That is what I'm getting hung up on, if we are filing the CTR are we alerting the IRS to the potential or do we need to take it a step further and connect the dots...

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#570182 - 06/20/06 04:42 PM Re: SAR??
MagicCity Offline

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MagicCity
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
No you do not need to take it any further.
I went through this with an IRS agent and he stated the same thing.
That is not the bank's job and they are more than aware of which industries use undocumented workers.

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#570183 - 06/20/06 04:45 PM Re: SAR??
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
Perfect,

Thanks!

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#570184 - 06/20/06 04:45 PM Re: SAR??
Pinkie CRCM Offline
Gold Star
Joined: Aug 2003
Posts: 399
KY
If we didn't have structuring, my response would be the same as Magic's - we are bankers and not cops. It's bad enough with all the monitoring for money laundering and terrorist financing, and MSBs, high risk, etc...and as far as I know, even though illegal immigrants is a hot topic, it's not something that I'm required to report, or monitor.

Unless there is an identity theft issue.

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#570185 - 06/20/06 05:15 PM Re: SAR??
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
I'm sure its only a matter of time before we start reporting on that too ... 12 CFR chasing our tales!

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