We have a customer who we suspect is kiting. We are considering closing the
account and writing the customer a letter stating that the account is being
closed. Our question is what can say to the customer to explain why we are
closing the account?
I am unsure what to enter when completing the dollar amount involved on a SAR. Does aggregated total mean the amount deposited and the amount withdrawn as one total? An example is a kiting scheme, would I enter the amount of checks deposited from the other bank or the amount of checks written to the other bank or both?
A customer has two checking accounts at one financial institution and is floating checks between these two accounts. Is this check kiting even though another bank isn't involved?
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
A customer made a deposit in our ATM. We decided to place a hold. He was obviously kiting. The checks placed on hold were not returned NSF from the other bank. My understanding of Reg CC states that if we send a hold notice at a maximum of the next business day, we can charge NSF fees and do not need to refund them.
How can I keep an account open for a bank customer (corporate) who has been a good customer for 14 years, though recently had an instance of suspected check kiting. The check kiting situation was done unknowingly and everything has been paid. In what situations and under what conditions can I keep their accounts open?
What are our rights to return an item when it is returned through the Fed -- post the 24-hour rule -- for "refer to maker?" We find this occurs most often when we discover a check kite and start returning items to the other bank -- all of a sudden they start returning checks for "refer to maker" that are long past the right of return.
We suspect a customer of check-kiting. There are other financial institutions involved. Do we have to make them aware of the situation? Are we ever required to tell them anything? We are maximizing the hold times on the items we process. Is this enough to limit our risk?
If we suspect a customer kiting. How long can we put a hold on checks being deposited. Does it matter if they are local checks or non-local checks?
I went to do a security program for a financial institution one night, and was told that my audience would be varied - from the front line and officers, to operations and several of the directors f