Letter Re: SARs and CTRs

Hugh,

Regarding L.O.’s letter and “don’t act suspicious and you won’t be suspected”, SARs and CTRs are required by federal law. CTRs for any cash transaction for $10,000 or more are required. This is also true of a cash transaction at a jeweler, car dealer, et cetera. Also, in high crime areas (drug areas), the bank may be required to report any cash transaction over any amount set by a federal agency. For a time, in Eastern KY, all transactions over $3000 required a CTR. These are done without the customer’s knowledge or permission, usually after the transaction is completed, though with today’s automation, the CTR may be generated automatically without teller input. SARs are required for ANY “gut feeling” of improper financial activity; the report is then reviewed by an internal bank officer, who reviews the customer’s activity, and then the report is sent to a federal agency. Again this is done without customer’s knowledge or permission. The PATRIOT Act, while riddled with problems, was and is very effective to the banking industry in the pursuit of money laundering. – T.B.

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