For risk assessment purposes in determining if the business is a MSB, why would the question of do they sell lottery tickets or have an ATM onsite be questionable?
Two weeks ago we received notice of a without entry breach of warranty from the drawee bank on a $16,510 check. The maker has sent an affidavit of fraudulent activity with an altered payee claim. The check cleared the account almost three months ago. Our depositor was not aware of this alteration and received the check by a mail lottery scam with their name in the payee line. We, the depositing institution, acted in good faith and accepted the check for deposit. Our depositor waited for the check to clear and withdrew the funds. We are now being ordered to pay the full amount of $16,510 back to the drawee bank. I have gone through all the UCC sections for presentment warranties, imposters, ficticious payees and negligence contributing to forged signature or alteration of instument. Are we held liable for this item? And did the drawee bank meet the timeframe to return the item?
Should we be reporting lottery scams and if so, to whom? Several of our customers get letters and even checks stating that they've won a lottery, but they are fraudulent.
Our financial institution has implemented a policy of requesting financial information to assist in ascertaining whether a customer may be exempted from currency transaction reporting. We were told that we cannot explain to the customer why we are requesting this information. Is this true or mis-information?If we can tell a customer that we are filing a CTR on them, why would we not be able to explain to them that we are requesting information on their business to help us determine if they are eligible to be exempted?