Avoiding Garnishment with a Safe Deposit Box?

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Question:

A customer recently told a teller that he was cashing out most of his account in order to avoid garnishment from a creditor. He also told her he was opening a safe deposit box to keep the money "safe" from the creditor. A CTR was filed, but my gut tells me to file a SAR. Is this correct? If so, what is the reason?

Answer:

I'm not so sure I would pull the trigger on a SAR just yet. Trying to hide money from a creditor is more of an art-form than a criminal act, unless the creditor is the government. It's also not against the law to store cash in a safe deposit box, even though a lot of banks try to convince themselves and their customers that it is. I'd keep an eye on this customer's activity to see if you can identify anything more concrete than a rather artless attempt to avoid paying his bills.

First published on BankersOnline.com 8/02/10