Use of the Category ?Other?
The examination manual indicates that professional service providers (ie; lawyers and accountants) could be considered high risk. If an attorney or a CPA has a personal deposit account with their spouse does that relationship require more due diligence than any other personal deposit account holder?
I am currently doing the annual review of Phase II exempted entities and I found that a previously exempted business account is now conducting cash deposits to a different account, opened in September, 2006, with a different TIN. The names on the accounts are the same and two of four authorized signers are on both accounts. Can I exempt the new TIN because of the existing exemption status for the old TIN, or do I have to wait for September, 2007?
We have a customer that has a home equity line of credit. They run a check cashing business with it by bringing in the checks and applying them as a payment, then doing a large advance from the loan to take back to the store to use in cashing checks. I regularly file CTRs on them, but do I still need to treat them as a MSB even though they do not have a business deposit account? Do I need to have them fill out questionnaires just like I would do on a deposit account?
A customer deposited a $15,000 Cashier's check that was about a year and a half old. Should I file a CTR and a SAR?
I have recently moved into the compliance area at our bank. The previous compliance officer revoked CTR reporting exemptions for sole proprietorships. Is there anything in the regulations that prohibits us from granting an exemption from CTR reporting requirements to a sole proprietor?
In reviewing an auto loan app today I noticed the customer has had 13 auto loans in the last 24 months (June '04 to June '06). He trades them in, usually with the same dealer. He has never made more than 2 payments on a loan. He first became our customer in July '02 and through Aug '03 received 9 separate auto loans, with this same pattern - one or two payments and trades off. Three off the loans in his whole portfolio received large principal reductions as one of their payments. None appear to be in cash. Is there cause here for a SAR? Or is this simply an aggravating customer?
I understand the Deadline for CIP was October . Is there a deadline for Customer Due Diligence and Risk Rating? Are the auditors checking for this now?
For payroll cards, do we do CIP on the business (our customer) or their employee?
We have a customer who wrote a check to a business to pay a bill. The check was cashed and he has the returned check. The following month, he got another bill saying that it had never been paid. Come to find out, a person at the business had stolen the checks from the company and deposited them into another account at another bank. We are not sure if the suspect opened the account at another bank in her own name, or if it was in the business's name with their Tax ID and information, as she would have had access to that information as well. Either way, who would be responsible for the loss? I am under the impression that it would fall back onto the business or the other bank, as they do have due diligence to verify and know who they are opening an account for, am I correct?