A business customer opened an account in one of our offices 4 months ago. About 4-5 times per month, the owner of the business deposits a check from another bank customer (a business), we verify that the funds from the check are available as it is "on us", then the depositor withdraws the entire amount of the check in cash. Very little other activity occurs in the account. The branch manager wants to file a SAR; however, I'm not certain that one is warranted. The check amounts range from $1,000 to $4500 and the account owner in question is supposedly in the home remodeling business. The checks are from a company in a similar line of business. Any input would be greatly appreciated!

Just a guess, but he is probably paying his employees in cash so they don't have to pay taxes. However, unless you have a substantial basis to believe he is involved in illegal activity, no SAR is required. However, you will get some argument here that tax evasion or "conspiring" with someone else to avoid payment of income taxes is reportable. Unfortunately, it is a judgment call. Some are adamantly opposed, while others feel it is the right thing to do. Personally, I think it is the right thing to do since I have to cover for the taxes these people do not pay.