Looking for advice on how to handle a teller who has a major gambling addiction (clearly evidenced in the teller’s personal DDA - writes dozens of checks to the gambling establishment weekly). The teller also makes a lot of cash deposits. The gambling and cash deposits add up to three times the teller's take home pay (over $4,000 per month) - yet the account's avg balance is only $115 YTD.

We performed a surprise cash count on all vaults, drawers, and the ATM at the branch - only a $.59 outage. We reviewed all cash out transactions for three months and any activity on inactive or dormant accounts and found nothing. Audit and HR has met with the teller a few times and she swears all the cash comes from gambling winnings, but considering the odds of winning are less than 1% (per a gaming website) and she seems to make deposits that almost exactly match her gambling spending - it doesn't add up. We pulled another credit report - nothing unusual.

We filed a SAR - any other advice? We are also concerned with how the examiners will feel about us filing a SAR on an employee yet continue to let the employee work here – they have been critical of that in the past, yet HR doesn’t think we have enough to terminate employement. Thank you.

"We filed a SAR - any other advice?"

Why did you file a SAR? Is she gambling in illegal establishments. Last I checked, if the casino is a legal casino, gambling is not criminal activity, even at the level of a gambling addict, unless there is suspected additional illegal activity.

The odds of winning are not 1% - so don't believe anything you read on the Internet. Depending on the game, the house odds may be as low as a couple of percent of every wager.

If you suspect she is a security or embezzlement risk, just fire her.

Other than illegal gambling, the close #s on checks out and cash in makes me wonder if this is money laundering. It is certainly unusual activity that is hard to explain.

I would worry about a teller, with access to cash, having a gambling addiction and would want to limit my risk by ending the relationship. Why continue and have to monitor the account and the branch?

Have you considered moving this individual into an area where she does not have access to cash or unmonitored account entries?

To better explain, gambling is on pull tabs at a local charity club, not casino gambling where, yes, the odds can be better.

Out of 3,900 cards in a set sold for $1 each, only 16 cards pay between $50 and $250. The 1% came from the odds of winning at least $10 (39 of 3900 cards). We filed a SAR, not because of gambling, but because of the $4,000 in cash deposits each month doesn't seem reasonable based on the explanation given (winning pull tab games).

Also, this has been going on for six months. I'd say a lucky month here and there seems reasonable - but every month coming out almost exactly even? Doubtful. Thanks.

I hope she doesn't read these threads.

I agree with you...it is the even dollars that seems very unusual, making me think of laundering funds for someone (or for herself).