BSA and AML Case Studies for Credit Unions

Explore why customers/members presenting financials that have not been prepared professionally should raise a red flag.

This case study illustrates how a customer/member's request to wire loan proceeds to a well-known politician with no known business purpose may be considered suspicious.

See why a customer/member requesting a large loan secured by CDs may be cause for concern.

See why lenders may want to be wary of customers/members who rely heavily on their lawyers when conducting banking activities.

Find out why a customer/member's request to wire loan proceeds outside the country may be suspicious.

Explore how due diligence activities may reveal suspicious activity.

Exercising due diligence at account opening may reveal suspicious activity find out how.

If a member refuses to provide sufficient information upon trying to open account, discover why you should not open an account.

An incoming wire for the same amount closely following on an account with little regular activity other than currency deposits and wire transfers to foreign countries may indicate possible money-laundering. Learn what to watch for.

Overpayment of a credit line or loan may be used to integrate illegal funds see why such activity may be cause for concern.

A sudden and large payment or payoff of a loan may be used to integrate illegal funds, and should raise a red flag.

During loan servicing, a suspicious transaction history may be uncovered and could indicate money-laundering. Explore the warning signs to watch for.

This case study illustrates how repeated, round-dollar transfers to high-risk countries, such as the Cayman Islands, may indicate possible money-laundering.

See how wire transfers to foreign countries with an in-coming wire for the same amount closely following may indicate possible money-laundering.

See why a customer/member's frequent request to exchange large quantities of smaller denomination bills for large denomination bills may be considered suspicious.

Numerous deposits into an account by multiple persons other than the account holder could signal suspicious behavior.

Find out why unlicensed check-cashing through a customer/member's account may be detected.

See why the unexplained and unexpected purchase and deposit of money orders should be considered suspicious.

Discover why a customer/member's unexplained, sudden wealth may be questionable.

Loan officers encounter the BSA primarily through the customer\member identification requirements. This case illustrates some of the complications involved when a customer/member is less than forthcoming with some information.

Although loan side suspicious transactions may not be as common as those related to deposit, loan officers still should be aware of the different kinds of fraud that can occur in connection with loans.

Part of the responsibilities of loan officers is to ensure that the bank makes good loans. Even if a loan application seems to be filled with accurate information, sometimes additional due diligence is necessary. This scenario presents a situation where a loan officer must decide if something suspicious is going on during the application process for a client's commercial loan.

Review the record-keeping and verification procedures that must occur when an institution facilitates a wire transfer between a mother and her son at college.

If a member refuses to provide sufficient information upon trying to open account, discover why you should not open an account.

See how the CTR, SAR, and funds-transfer rules could come into play simultaneously, or at least may need to be considered concurrently in a single transaction.

Learn about the record-keeping and identity verification procedures that must occur when an institution receives a wire transfer on someone's behalf.

This case study presents a member who may be eligible for placement on the institution's "exempt" list - the list of members whose currency transactions are exempt from the reporting requirement.

Because of the account records they have access to, operations employees frequently see evidence of fraud that other institution employees do not.

Studying account records and generally being tuned in to what to look for may help reveal fraud. In this case study, an operations employee suspects fraud when she connects information she reads in the newspaper with the information she sees in a customer/member's account records.

Financial institution employees who process data and file forms are also subject to the BSA requirements. Occasionally, these employees may come across something that raises concerns. Explore a situation in which an institution may want to file an SAR.

Individuals who want to avoid the CTR requirements sometimes employ ATMs to do so. This case study covers activities that might raise suspicion.

This case study presents a customer/member who believes he has discovered a tax loophole and attempts to "structure" currency transactions to avoid the currency transaction reporting requirement.

Why would a business checking account customer/member who plans to deposit $16,250.28 to his account raise a red flag? Find out in this comprehensive case study.

Explore a suspicious scenario where multiple customers/members work together to "structure" a currency transaction to avoid the reporting requirement.

In this case study, a customer/member structures currency transactions by having an exempt person make the deposit to avoid the currency transaction reporting requirement.

This case study presents a scenario involving a non-profit organization. As you will see, just because an organization is non-profit does not automatically discount it from being a BSA risk. Throughout this case study, you will be presented with decision points to test your knowledge.

This case study presents one of the classic traps in the trust business as it concerns the Bank Secrecy Act (BSA). It illustrates why it is important to always follow the rules. Just because you know someone, you cannot overlook the important steps necessary to open a trust account. Throughout this case study you will be presented with decision points to test your knowledge.