I have a customer who was a partial recipient of loan proceeds. He asked that his part be disbursed in several cashier's checks made payable to his son. The son then would come in and cash the checks separately. Some needed a CTR and some not. I'm trying to decide if this warrants the filing of a SAR on either the father, the son or both?
When issuing cashier's checks, does the party the check is being issued to have to be checked against OFAC?
We are in a discussion with our BSA officer regarding this situation and need some direction. We currently sell cashier’s checks only to customers of our institution. We currently check OFAC on the payee in addition to the purchaser (our customer) which is covered by our routine OFAC check. Periodically, we have customers who purchase cashier’s checks for other persons, such as children, family members or others and they ask us to list these other names in the remitter portion of the checks. Do we have to check OFAC on this additional person even though we have checked the payee and purchaser? If we did, wouldn't we be exposing ourselves to collect CIP since we have allowed them to conduct a transaction via our institution? We are trying to establish the line between "memo information" as the memo information on a personal check, and "memo information" as transaction information that is covered by OFAC/BSA.
Husband and wife customers came in and purchased $10,000 in savings bonds. They used a $4,000 on us check and a $3,000 savings withdrawal and $3,000 in cash. Our bank completes Monetary Instrument Logs for Official Checks, Travelers Checks, and Cashier’s Checks that are purchased with cash between $3,000-$10,000. Would a Savings Bond qualify as a "Monetary Instrument"?
A customer closed two joint CDs and had cashier's checks made payable as the account reads. A few days later he called the bank and asked if he could bring the cashier's checks into the bank and cash them. On his return, a woman came with him (possibly the other joint party to the checks) and waited in the lobby while the transaction and funds were counted to the customer. He then went to his safety deposit box and put the cash there. Should we have received information from the party waiting in the lobby to enter on the CTR?
We charge a fee of $25 for selling cashier's checks and a person buys a cashier's check for $9,990 in cash and pays the fee in cash, should we file a CTR? If a customer wants to cash a check for $10,010 and asks the teller to deduct the $25 fee from the check, should a CTR be filed?
We bank an income tax preparer. He files returns for his customers, issues refunds using cashier's checks from another bank payable to his clients. He then cashes the checks for his clients and deposits them into our bank. Are these tax preparers considered MSBs?
Our BSA procedures state that "individuals are never exempt from CTR reporting. Cash out transactions, currency exchanges and purchases of cashier's checks are never exempt from reporting." Is this a true statement? I have been unable to find information to support it.
When selling cashier's checks to customers which are typed with the remitter and payee, do we need to run the payee thru OFAC listing and also get the address for the payee?
I know you can't "stop payment" on a cashier's check but you can "refuse to pay" if the remitter or payee asserts a claim in writing because the check is lost, destroyed or stolen? Can we charge the customer our Stop Payment Fee of $20.00 for this service or would we have to change our Schedule of Fees to include a "Refusal to Pay" fee before we could charge for this service?