Structuring

Posted By: complofcr

Structuring - 11/03/20 04:38 PM

I have read the definition of structuring. However, what would it be called if the customer only conducts 1 transaction that is less than $10,000. For instance, the customer cashed a check for $9,990. I'm pretty certain the customer cashed the check for this amount to keep it less than $10,000 but is it considered structuring since it was only 1 transaction?
Posted By: rlcarey

Re: Structuring - 11/03/20 04:40 PM

It is awfully hard to structure one transaction. You would need a lot more information to make that determination. If I sold a car for $9,999 and cashed the check, that would not be structuring.
Posted By: Oursisnottoreasonwhy

Re: Structuring - 11/03/20 04:48 PM

It probably doesn't qualify as structuring, but you could still file a SAR for transaction out of normal pattern.
Posted By: complofcr

Re: Structuring - 11/03/20 04:58 PM

Thanks! That was my thinking also.
Posted By: edAudit

Re: Structuring - 11/03/20 05:33 PM

Originally Posted by Oursisnottoreasonwhy
It probably doesn't qualify as structuring, but you could still file a SAR for transaction out of normal pattern.



Just wondering. I own a business and I get one contract that is $9500 vs. $7000 as a normal fee you would file a SAR?

There is probably many third parties here that would have SARs filed on them for this logic.

Investigation is the key to file or not to file
Posted By: Skittles

Re: Structuring - 11/03/20 07:01 PM

While I agree with everyone - the only thing I want to add is if the customer lowered the amount of cash he wanted to avoid filing the CTR - then you would more than likely file for structuring.
Posted By: ACBbank

Re: Structuring - 11/03/20 08:09 PM

I wouldn't file on one (1) transaction unless there is a situation like Skittles referenced. IO structuring needs to be a pattern. Do you really want to be filing SARs on every transaction below $10,000?
Posted By: HappyGilmore

Re: Structuring - 11/03/20 08:35 PM

Originally Posted by complofcr
However, what would it be called if the customer only conducts 1 transaction that is less than $10,000.


What would it be called? it would be called a deposit.
Posted By: BrianC

Re: Structuring - 11/03/20 09:08 PM

There is the box "Alters transaction to avoid CTR" but that only applies to the customer who wanted to withdraw more than $10,000 and then decides to withdraw $9,990.
Posted By: John Burnett

Re: Structuring - 11/03/20 09:41 PM

Originally Posted by HappyGilmore
Originally Posted by complofcr
However, what would it be called if the customer only conducts 1 transaction that is less than $10,000.


What would it be called? it would be called a deposit.

Or withdrawal.
Posted By: John Burnett

Re: Structuring - 11/10/20 09:25 PM

Originally Posted by BrianC
There is the box "Alters transaction to avoid CTR" but that only applies to the customer who wanted to withdraw more than $10,000 and then decides to withdraw $9,990.


Or deposit.
Posted By: IronP2717

Re: Structuring - 11/13/20 05:44 PM

Agree w/Randy. A single $9990 transaction alone would be hard to say it's structuring.
However, i've had customers say, "what's that cash limit?" give them the brochure. They review. Then say, " ok. give me $9500." Or They've told the teller they instruct their customers/clients to write checks below 10k.
Posted By: ColoradoAML

Re: Structuring - 11/13/20 06:28 PM

I agree with IronP's point.

Generally BOL threads addressing whether or not something is suspicious give the advice to investigate. While I agree that a customer cannot structure if they don't desire to transact over the reporting limit, just because a transaction or series of transactions that you identify is below the limit doesn't mean they weren't structured.

Rarely, based on our knowledge of the customer, their relationship to us, their relationships with other banks, the source of their income and wealth, etc., there are many circumstances that may lead us to believe that a $9,999 transaction was structured.
Posted By: Adam Witmer

Re: Structuring - 11/14/20 12:07 AM

The other thing to consider when looking into a $9,999 transaction is to see if there is some sort of limit that forced this amount? For example, while it wasn't a cash transaction, I once tried making a $11,000 principle reduction on my mortgage and found out that the system limited online payments/principle reductions to $9,999. While this wasn't a cash deposit, I've had enough issues with this mortgage servicer that I thought to myself "Great. Some idiot is going to see my consecutive day payments of $9,999 and $1,001 and think I'm structuring an $11,000 transaction because they don't realize they have a system limit."

So, I just left it at a $9,999 payment and didn't add the $1,001 in hopes that they wouldn't worry about a single transaction. wink
Posted By: Bec

Re: Structuring - 11/20/20 09:34 PM

You could also say its isolated.
Posted By: HappyGilmore

Re: Structuring - 12/01/20 07:48 PM

Quote
However, i've had customers say, "what's that cash limit?" give them the brochure. They review. Then say, " ok. give me $9500."


but this still does not define structuring,,,unless they then come back and withdraw $500.01 or greater in short period of time
Posted By: BrianC

Re: Structuring - 12/01/20 08:21 PM

If the bank concludes that the customer's original intent was to withdraw more than $10,000 and they don't there is still the box on the SAR for "Alters transaction to avoid reporting" which I might use in connection with "Suspicious inquiry regarding reporting thresholds."