Our wire form has a space for the name, address, etc. of the "originator" of the wire. We (Compliance) always considered the originator to be the person sending the wire: i.e. the person whose account is being debited for the funds transfer.
We are now being challenged on this and asked where it states that the "originator" has to be the customer. Evidently we have a customer who wants to send wires (large $ amount) from her account but wants the name of the "originator" to be an entity that we are not familiar with and that does not bank with us. The arguement is that as long as we can determine where the funds came from, why does it matter whose name is shown as the originator?
Am I being incredibly anal, or does this just smack you upside the head as a problem? If so, I need chapter and verse to convince the masses. Help, please??

What does your Wire Policy state? It could get you off the hook without searching. If your policy states that you only accept wires for customers, wouldn't it make sense that the originator had to be a customer so you could only use the customer's name not a different entity. Right?

Opinions are mine not my employer

Maria,
Our BSA Policy states that we only "originate" wires for customers. We created the wire form with that in mind. The argument, however, is that we did "originate" it for a customer; we know who sent it and whose account was debited and who signed the wire authorization, and that person is our customer. So, what difference does it make who the wire is "from"? One person stated to me that if she wants to give permisson to have funds wired from her account for someone else,and not have her name show up on the wire, she should have the right to do so.
There is a section on our wire form to complete when a customer is doing a wire "on behalf" of someone else. That is the portion that I feel should show a third party name if that name is different from the wire originator.
My fear is this scenario: The authorities show up and say, "Hey,bank, you have been sending wires from XYZ Corp, and we have information that XYZ Corp is laundering money". And we say, "XYZ Corp isn't our customer. We don't know anything about XYZ Corp. We don't know who they are or what they do or what business they are in or who is authorized to transact business on their account!". To which they reply, "Then why the x#$*% are you wiring money for them!!!?"
Good question.

[This message has been edited by Leslie (edited 11-26-2001).]

"Originator" is defined by BSA (103.11) as the sender of the first payment order in a funds transfer.

Branda,
I know,I quoted that to the masses, and they still refuse to budge! The question I am getting is: "Where does it say (or does it?) that the orginator's name has to be the name that is on the account that is being debited?"
Anyone?
Leslie

Please review REG J(section 210.26) as it defines the terms you are looking for in the wire transfer realm.

If you are using a vendor's form go back and ask the vendor to define all items on the form.

I'd be very careful about bending to this customer's wishes. If "A" initiates the wire request, "A" needs to be listed as the Originator in your wire records. That's in 31 CFR 103.33(e). Why is it that the sender seems to want to hide his/her identity from the rest of the transaction chain? Does the mysterious "Party X" (whose name "A" wants to appear in the wire as the sender) not have a bank account with you (or anyone else)? Why can't "Party X" initiate the wire instruction itself (perhaps with "A" as their agent) from its own funds?
Unless you can determine a legitimate business purpose for "A" hiding behind "Party X" in the wire instructions, I'd consider this prime fodder for a SAR!

. . .and sometimes, common sense needs to prevail when you can't find "holy writ" to back up your policy or procedure.

[This message has been edited by John Burnett (edited 11-27-2001).]

I still agree with everyone else, the originator needs to be the customer and the wire form needs to state such. What about using the other name under "reference" if the customer is so persistant on showing this other name? Or ask the customer to establish an account under the other name so that account can be debited for your audit trail.

let us know what your solution ends up.

Opinions are mine not my employer

Thanks, everyone. Bill Hood at ABA helped me find a Q&A that was put out by FinCEN in 1996 that clarifies the recordkeeping reqirements for BSA and funds transfers. Apparently the biggest issue is whether or not we can retrieve the funds transfer information under the originator's name. In this instance, we would be unable to do that, because we would have no record of the originator as being a client of the bank.
We are changing our wire form, writing more specific procedures, and yes, we are filing a SAR!
Leslie

Can you get us a copy of that Q&A or tell us where to locate it for future references. It never hurts to have this info on file.

Glad you got what you needed.

Opinions are mine not my employer

Maria,
The issuance I have is part of OCC Bulletin 96-35. I had a hard copy in my files, but I am sure you could get it from your regulatory agency or from FinCEN. The issuance was put out by the US Department of Treasury (FinCEN) in May 1996, and is called BANK SECRECY ACT RECOrDKEEPING RULE FOR FUNDS TRANSFERS AND TRANSMITTALS OF FUNDS 31 CFR PART 103.
Leslie