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#80496 - 05/15/03 03:04 PM
Employee embezzlement
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Anonymous
Unregistered
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We had to file a SAR on a former employee recently (bank took a big financial loss also). Do we need to notify our regulator also? I believe all we are required to do is file a SAR but I want make sure I'm not missing anything. Local authorities were not contacted. This has been very discreet.
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#80497 - 05/15/03 03:17 PM
Re: Employee embezzlement
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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Does your examiner check in with you periodically? If so, it should come up in the conversation. They really don't like to be surprised when there is a "big financial loss" due to insider abuse. They will see it anyway when they get ready to examine you because they generally check to see what SARs have been filed.
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#80498 - 05/15/03 03:23 PM
Re: Employee embezzlement
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10K Club
Joined: Jul 2001
Posts: 83,363
Galveston, TX
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A couple of things to consider - make sure your bonding company is aware of the loss. Second, if this is a "big financial loss", I don't think you have a choice to not report it to the FBI. Bank embezzlement is a Federal crime and those that help cover it up could possibly be indicted as accomplices or on conspiracy charges. Your regulators are not going to be happy either.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#80501 - 05/15/03 04:52 PM
Re: Employee embezzlement
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10K Club
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
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Former employee? What kind of financial loss? Is it as the subject title suggests? If so, follow the previously given advice. I'd hate to explain to an examiner (I don't look very good in stripes) why we didn't bother to report "embezzlement" other than through a SAR.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#80502 - 05/15/03 06:14 PM
Re: Employee embezzlement
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Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
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Call your regulator. Soon. You'll find that they're really there to help you. If several agencies get involved in investigating this matter, your regulator can protect you also.
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Opinions my own.
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#80503 - 05/15/03 08:52 PM
Re: Employee embezzlement
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Anonymous
Unregistered
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If the "financial loss" is an embezzlement or any other suspected criminal violations, you need to file a Report of Apparent Crime form with the FBI, FDIC, and the US Attorney in your district. This form should be filed no later than thirty days following the discovery.
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#80504 - 05/16/03 03:22 AM
Re: Employee embezzlement
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10K Club
Joined: Jul 2001
Posts: 83,363
Galveston, TX
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Can you provide the site that indicates that a Report of Apparent Crime must be filed. If I remember correctly, this was an FDIC form that preceded the modern day SAR
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#80505 - 05/16/03 11:28 AM
Re: Employee embezzlement
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10K Club
Joined: Aug 2001
Posts: 21,939
Next to Harvey
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Anon, Please consider rlcarey's comment...the addressees you mention, as well as the name of the form, indicate you are looking at a form that is obsolete. You can find the current form, a Suspcious Activity Report here: http://www.fincen.gov/f9022-47r.pdfAfter July 1, you will use a slightly revised version that is also on the FinCEN web site.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.
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