Ken Golliher is a principal with Pegasus Educational Services, LLC., a training firm organized in 1996 with headquarters in Louisville, Kentucky. Pegasus specializes in technical and regulatory instruction for financial institution personnel. He is an experienced banker with a unique ability to reduce complex legal concepts to plain English. He has explained the "why" and "how" of regulations to thousands of financial institution personnel and examiners. Ken's banking career began in 1972 and includes serving as a teller, commercial operations manager and as trust department legal counsel in a state and a national bank. For ten years he headed the education division of a regional consulting firm for financial institutions. He has served on the faculty of the LSU Graduate School of Banking, the OTS' Level I Compliance School and the FDIC's Advanced Consumer Protection school for examiners. Ken has also been an instructor at compliance schools sponsored by the Illinois, Georgia, Indiana and Nebraska bankers associations.
I have read several scenarios on currency in a deceased person's safe deposit box. We have one that I am not sure will meet the definition of "transaction" Case is single renter deceased, box drilled upon non-payment of rent. $18,000 in currency was in the box, that along with other items was verified under dual control and put into safe keeping. Later, staff started tracking down the estate or likely survivor. We found his spouse, and she had no idea he had the box. Upon proper documentation of her right to have box contents, she was given the currency, and no one at the branch considered that a CTR might be required. Since the dollar amount was never placed in a bank account of any kind, there was no transaction that the CTR software could see, so it did not appear there, or in BSA AML monitoring software. It is well past time to file. Do we need to start a back-filing request to FinCEN?
Should a bank allow a customer to overdraw their account at the teller window by letting them withdraw any amount up to their OD limit and also charge them the normal OD Fees?
If we have a customer that recently purchased a business. He wants to deposit a check made payable to the business but is also payable to the former owner. Should we just have them request a new check be issued to only the business or, based on paperwork provided can we confirm the current customer has rights to anything made payable to the business going forward regardless of the additional reference to prior owners?
When an IRA owner dies are you required to open a beneficiary IRA and/or complete a beneficiary distribution form when paying out funds to the beneficiary?
We have a commercial account which has had fraudulently created checks presented against it. When we returned these items to the bank that cashed them, that bank sent them back stating there was only a 24 hour window to return. We initially returned them back as fraud within two weeks of receipt. Shouldn't that bank accept the check and the loss?
Currently our UTMA accounts (we are in Texas) do not have a service charge and they are opened as a minor savings product type. Our disclosures do not state that they will be converted to a regular savings service charge at the age of 18 but we are soon changing our disclosures to read that minor savings will be converted to regular savings when the minor reaches 18.
On existing UTMA accounts are we able to change the service charge with a 30 day notice or for the existing accounts and do we have to wait until the minor is 21 to be able to change their service charge?
I have received some responses that an UTMA is irrevocable and because the custodian was not aware of the charge at the time, that we could not enforce the change until the minor reached the age of 21.
We have a client who wants to cash checks payable to his trust instead of depositing the check first and than doing a counter withdrawal. Does anyone know the UCC code so we can provide documentation as to why this isn't allowed?
I am in the process of exempting a business as a Phase II Customer. It is a local grocery store that is a registered MSB (due to cashing checks over $1,000). Can an MSB be exempt under Phase II? I have been told by an examiner that yes they can, but then I have been told by a rep from FinCEN that no they can not. Also, if they can be exempt, what forms besides the BSA Exemption Review Form do I need to obtain? We only have one other Phase II Exemption who also provided their P&L's. This business, however, is not willing to provide this information. I have weighed out if it would just be easier to go ahead and continue filing CTR'son this business, but with at least 4 CTR's per week, it would be better to exempt.
Can I use right to offset against a dormant account to pay past due rent on a safe deposit box?
What are the requirements needed to open an estate account?