Legal Ease is the weekly Q&A from the IBAT Bottom Line. Go to the Legal Ease Archive.
Latest Additions to Legal Ease:
A person has come to the bank with a power of attorney and wants to open a new account for the principal and name himself as POD beneficiary. Can we do that?
We have an MSB customer who exchanges large amounts of cash for $100’s. This activity is not unusual for this customer. The customer has been spoken to about this activity and the conversation has been documented. All CTRs are filled accordingly. This customer is subject to daily cash monitoring as well as enhanced due diligence at least quarterly.
Recently, while the customer was in the lobby conducting a routine transaction, the teller asked the customer, "Where did all this money come from?" His response was "Gambling." I don’t know where to go from here or if I even need to go anywhere with this. Is this an issue? Because he stated "gambling," is there some other type of monitoring that I should be performing? Is there another type of form that needs to be filled out? "Gambling is not a MSB activity." I’m not exactly sure where to go from here.
- UIGEA was enacted to prohibit institutions from accepting payments from any person engaged in the business of betting or wagering with a business in unlawful Internet gambling.
We had a discussion in our officers' meeting this morning in regards to cashing U.S. Treasury checks. There is some confusion in regards to cashing the tax refund checks. Do we have to cash the tax refund checks for non-customers? Could we charge a fee?
We have income tax refunds being made via ACH to an account that is not in the name of the taxpayer receiving the refund. Can we accept the deposit?
This is cautionary updated Advisory that FinCEN issued last year -. Read this, talk to your customer, and decide if you need to file a SAR. You should let the customer know that the IRS has said to not do this. The Advisory contains a list of potential Red Flags of Income Tax Fraud.