Why do customers store money in cashier’s checks?

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Question:

My customer sold a piece of property and has stored the funds in a cashier’s check. The customer comes in and takes money off the check regularly. Is this a problem?

Answer:

This has become a regulator hot spot. Regulators see cashier’s checks stored in safe deposit boxes as “hiding money,” which can be a red flag for criminal activity. Your financial institution has to really look at why customers are engaging in this type of activity and consider filing SARS when the reasons don’t add up.
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