If a customer begins withdrawing cash daily in large amounts, but less than $10,000 in any one business day, should their activity be aggregated and reported on a CTR as well as filing an SAR? Or since it is below $10,000 on any business day is only an SAR needed?

A CTR is used for cash transactions in excess of $10,000 on a single day. The customer in this case appears to be 'flying under the radar,' and this type of activity falls under the transaction structuring definitions, thus triggering an SAR.

I agree that a CTR is NOT required. I cannot say for sure that a SAR is required. Rather you must make a decision whether this customer is evading to avoid the filing of a CTR or is withdrawing the money in this matter for a legitimate reason. JacFSB is correct that "flying under the radar" or evading is reportable on a SAR. You should "Know Your Customer" and file accordingly. Good luck.

I concur with David Dickinson's advice not to be trigger-happy with SARs. It's not a crime to engage in large cash transactions & customers may spread out withdrawals for security or other legitimate reasons (hiding money from a spouse is very popular.)

Before reaching the conclusion that structuring has occurred, I'd consider the sophistication of the customer. If you have reason to believe the customer understands the CTR filing requirement, then the behavior is suspicious. Otherwise, you may be dealing with someone who deserves closer attention, but not a SAR.

Richard,
That is practical advise from the standpoint of we don't need to be flooding the system with more SARs on structuring HOWEVER...., you have to be aware of what your BSA examiner will think in your next exam. A while back, we had made the determination that a customer wasn't structuring, the BSA examiner disagreed - and voila - BSA violation.

I think that you need to learn to argue better Bonnie. The Examiner could be right, but you are the one that knows the customer. I would have argued this for a long way.

I don't know the exact situation, but filing a SAR is a judgemental thing once you get past the black and white issues. If you understand the black and white issues, I would not let an examiner cite me for a judgemental item, without a good fight.

In my advise to David I should have added "you should document to support your conclusion either way (file a SAR or not). If you don't file a SAR at this time, documentation will help if you need to file a SAR later, or if an examiner questions your decision."

[This message has been edited by David Dickinson (edited 12-11-2001).]

Maybe I was a little trigger happy there. But keep in mind that the filing SAR timeframe is 30 days from the date the bank detects the suspicious activity. While this buys you a few weeks to help you better assess the situation, The examiners will be looking for a decision by that 30 day mark.

If I was convinced I made the right decision, I'd fight this one all the way to my regulator's national office. Many years ago, an examiner-created fiction re CTR exemptions known as "malicious compliance" spread like wildfire because bankers rolled over and played dead at the first word of criticism. The regulators' national experts disavowed the whole idea and it was finally stamped out like a virus, but many bankers stood by while examiners made up a new standard and jammed it down the industry's throat.