Suspicious Activity Information meanings

Posted By: GrannieTwo

Suspicious Activity Information meanings - 04/13/20 03:44 PM

We have just completed a BSA audit with a SAR finding. What I don't understand is the auditor's comment was on misuse of position or self dealing. An example - Widow mother and son. The widow mother makes her son joint on checking and savings after her husband/father of son passes away. The deceased husband took care of all the bills, checkbook, online banking. She knows nothing about this and has asked the son to pay her bills as dad did which was online. Son says sure but besides paying bills begins to send money through VenMo to his account. Mother shows up on a BSA report we have and we ask to talk to her. She comes in and can't believe her son is doing this. I'll stop there. My thought was he misused his position that his mother entrusted him to have and self dealt to himself. The auditor says I misunderstand the meaning.
My question is this - is there a website that explains suspicious activity information meanings. The FFIEC manual page 68 states that the focus should be on whether the bank has an effective SAR decision making process, not individual SAR decisions.
Am I totally wrong on misuse of position or self dealing?
Posted By: rlcarey

Re: Suspicious Activity Information meanings - 04/13/20 03:52 PM

Son was placed on the account. It is now the son's money as much as his mom's to do with what he pleases, unless he was placed on the account in a fiduciary capacity. There is no SAR here. The son, while he has some real morality issues, did nothing illegal.
Posted By: rlcarey

Re: Suspicious Activity Information meanings - 04/13/20 03:57 PM

There is a really old chart in Issue 12 - go here. https://www.fincen.gov/sar-activity-review-trends-tips-issues

I have not seen anything more recently.
Posted By: rlcarey

Re: Suspicious Activity Information meanings - 04/13/20 04:18 PM

If you choose to file, follow this guidance.

https://www.fincen.gov/resources/advisories/fincen-advisory-fin-2011-a003
Posted By: GrannieTwo

Re: Suspicious Activity Information meanings - 04/13/20 06:50 PM

Thank you for your input, I do realize that the account was joint, but the son was to only help his mother not steal from her. It was a shame because the deceased parent worked with us and had passed away due to cancer. I know, I know, I can hear you saying that doesn't matter and I get it, but sometimes, my heart moves me instead of my head. Thanks for the attachment too, old is better than none. Stay healthy.
Posted By: Justin Case

Re: Suspicious Activity Information meanings - 04/13/20 08:29 PM

We'd investigate this for Elder Financial Exploitation and potentially file a SAR on that, especially given the mother didn't know anything about it. But I agree it wouldn't fall under the misuse of position/self-dealing category.