Can regulators make you file a SAR?

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Question:

Our regulators want us to file a SAR when a non-customer cashes a check at our institution and in the memo line it says something like “air conditioning repair”? How do we do this?

Answer:

If the noncustomer is cashing a check at your institution that is drawn on your institution and it is payable to a person, then yes, if the customer is hiding money from the IRS and it meets our thresholds it may make sense to file a SAR. SARs are subjective and depend upon the facts in each situation. The regulators are supposed to be looking at your process to make decisions. But this is a hot button this year. As a procedure, it may be best when checks cashed are over $5000 that you have your teller copy the check and ask for a driver’s license and send both to you as BSA officer. You can then run the situation through your committee.