Posted By: MHuff
Closing Suspicious Account - What to Tell Customer - 10/06/21 07:10 PM
We have a customer relationship that we are terminating due to suspected illegal activity (classic money laundering). Our COO spoke to the customer yesterday explaining that we would be closing his accounts, answered his questions, and said that the customer basically talked in circles. This customer has since reached out to our bank President as well as board members who all stood by our decision to close (even without knowing the full story). The customer says he doesn't understand why we are closing his accounts and actually went to one of our board member's business claiming that he thinks it's for personal reasons and demanding that our board member find out why the account is being closed and call him back with answers. Based on the customer's activity, we believe he knows fully well what he is doing. My question is, what can we tell the customer? Can we be upfront and tell him that based on his pattern of activity it appears he is operating a money laundering scheme and the bank will not be a participant in it? (Of course, the existence or non-existence of a SAR does not come into any discussion whatsoever with anyone outside of the SAR committee.)