HELP - Customer Wants to Keep Cash at Home

Posted By: Paris

HELP - Customer Wants to Keep Cash at Home - 05/21/08 08:16 PM

We have a customer that stongly feels that the government is in trouble and that we are heading for a depression. He told us he will be coming in weekly to withdraw $10,000 in cash so that he can keep his money at home.

HELP... What do you say to comfort a customer that wants to keep his cash at home?
Posted By: Marnie

Re: HELP - Customer Wants to Keep Cash at Home - 05/21/08 08:56 PM

I would guess you are dealing with an elderly customer. So a couple of thoughts first to consider: (1)could he be a victim of elder abuse, since this describes changes in his patterns over the past? You may want to talk to him in more depth, if you can, to determine if there is someone influencing his new decision to take out cash or what has really got him to change his patterns of banking. You may even want to get some local generic advice (without naming names)from your city/state agencies that deal with protection of the elderly. (2) The $10,000 amount is interesting from a BSA perspective since, again, this is a change in behavior, even if he is not an elderly customer. Bankers aren't psychologists, but we often have to delve into what makes a person change their previous financial behavior. Perhaps by investigating that you will find your answer to what to do to help him, if indeed it is a new paranoia he is exhibiting.
Posted By: John Burnett

Re: HELP - Customer Wants to Keep Cash at Home - 05/22/08 03:20 AM

If there is anyone in your organization who was there in 1999 when Y2K fears were rampant (and can still recall it), ask him or her how the bank coped with the problem back then.
Posted By: texasbanker123

Re: HELP - Customer Wants to Keep Cash at Home - 05/22/08 06:16 PM

tell him that if we are headed towards depression, cash is not a wise investment. recommend that he stock up on canned goods, bottled water, and firearms.
Posted By: Andy_Z

Re: HELP - Customer Wants to Keep Cash at Home - 05/23/08 12:20 AM

Originally Posted By: texasbanker123
tell him that if we are headed towards depression, cash is not a wise investment. recommend that he stock up on canned goods, bottled water, and firearms.


And gallon cans of gas! Right now that could yield a great return.
Posted By: Richard Insley

Re: HELP - Customer Wants to Keep Cash at Home - 05/23/08 10:10 AM

Originally Posted By: texasbanker123
...recommend that he stock up on canned goods....

During the past couple of weeks I heard a serious financial adviser recommend just that! He forecasts the cost of food inflating at a rate greater than today's interest rates.

Now would be a good time to re-educate customers about deposit insurance. By adding "Member FDIC" as a tagline to everything we advertise, maybe we've trivialized the most important difference between today's banks and the ones that wiped out life savings during the 1930's.
Posted By: Milby

Re: HELP - Customer Wants to Keep Cash at Home - 05/23/08 07:30 PM

You might also point out that if the government fails, the cash he keeps will be equally useless. He should at least get gold or, as other suggested, gasoline.

My gun safe is stocked... To quote Mr. T "I pity the fool that mess with me."
Posted By: FraudBuster

Re: HELP - Customer Wants to Keep Cash at Home - 05/27/08 03:32 AM

I shudder to think how many people may really be stockpiling gasoline--without any safety precautions.

People are scared. That scares me more than what they're scared of, if that makes any sense.
Posted By: Kathleen O. Blanchard

Re: HELP - Customer Wants to Keep Cash at Home - 05/27/08 03:45 AM

Not to rain on the parade, but the customer has stated that they are going to withdraw $10,000 even each week....that is structuring. How will you deal with that?
Posted By: #Just Jay

Re: HELP - Customer Wants to Keep Cash at Home - 05/27/08 01:29 PM

IMO, I would be more concerned about the structuring aspect if the stated 9k or such.

I would guess that the customer feels 10k is a reasonable amount for the bank to accomodate each week, and may even be easier for the them personally to keep track of perhaps?
Posted By: John Burnett

Re: HELP - Customer Wants to Keep Cash at Home - 05/27/08 08:34 PM

Originally Posted By: Kaybee
Not to rain on the parade, but the customer has stated that they are going to withdraw $10,000 even each week....that is structuring. How will you deal with that?


Whether you think that a smaller amount -- say $9,500 -- each week is more evidence of deliberate structuring than $10,000 each week is immaterial, I think. The transaction record will beg for a structuring SAR. If an occasional transaction is more than $10K and a CTR is filed, I'd fee better that the customer isn't attempting to avoid CTR requirements.