Structuring - SAR Filing & Board Notification

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Question:

I am an internal auditor and currently reviewing our bank's procedures related to the Bank Secrecy Act. I have two questions concerning structuring of deposits. <ol><li>Assume structuring of deposits is identified and known structuring is occurring. My understanding is that a SAR would always be completed, but our compliance officer is indicating a SAR may or may not be filed. If he or she is correct, please explain why we would not file a SAR if structuring is identified. <li>My understanding is that known structuring requires a SAR and, therefore, the Board (in our case the Board includes management personnel) would be informed. Our compliance officer is indicating that structuring would only be reported to management and the Board if a SAR was filed. Doesn't structuring always require a SAR and, therefore, Board notification? </ol>

Answer:

As to your first question, I would ask the compliance officer under what circumstances the bank would not file a SAR for structuring cash deposits. Structuring cash deposits to avoid CTR reporting is a criminal offense. As such, it is always an automatic SAR. I think this also answers the second question.

First published on BankersOnline.com 9/10/07