Someone opened an account in a small Louisana bank on June 3, with a bill payment check drawn on Chase bank. We placed a new account hold on it. The hold expired and funds became available but there were no transactions in the account. June 13, we receive two wires in this account from Chase Bank - memo says "for my wife Kelly Laura" and the wire came to our customer's account (not Kelly Laura). When we questioned our customer she stated "it’s for her daughter from the daughters finance that lives in Chicago and it’s for moving expenses." We asked her to come in with her daughter but she says she couldn't because the daughter is not here. We believe our customer is being scammed or something. Multiple attempts to get someone with Chase to help finally happened on June 24 when someone from Chase in our area helped us. They also feel there is something suspicious about their account holder and opened an investigation there. Meanwhile we are holding the money. Chase recalled one of the wires totaling $3,500 and we returned it. As of today were still holding $8,897. How long can we hold this, how long can we investigate, or what other actions should we be taking to protect the bank and the customer?
What is time frame in which a bank must credit the consumer's account for fraudulent wire transfers? The transfers were allegedly processed via the consumer's hacked email. The bank did not verify with the consumer prior to releasing the wires.
Can someone tell me what the record retention is for wire transfers?
Our practice is not conducting ACH transactions for Trust accounts such as Escrows. Is there any compliance reason to prohibit ACH for escrow or is it merely a business decision? Escrow company doesn't conduct ACH transactions but wires or check only.
Are we required to return a recalled wire, and if so what time frame do we have?
What types of wire transfer fraud is a community bank susceptible to?
Doesn’t wire transfer fraud attempt just target businesses?
Our bank is going to be implementing business online banking within the next few months. Within this module we are going to allow the business customer to initiate wire transfers and ACHs, which will be mainly for payroll service purposes. What, if any, compliance comes along with this and are there sample disclosures and consent forms that we can customize for our bank?
Is there any compliance/regulation stating that all funds transfer in USD must cross a US bank?
When another financial institution requests that we return a credit sent to one of our business accounts, do we need to get permission from the business owner to return the funds?