I am having a serious brain [censored] today.

1. Should the MIL be filled out if the customer deposits cash into their account first before buying a cashier's check? We waive the fee if they use funds on deposit.

2. Should the MIL be filled out if the customer buys a cashier's check with funds on deposit in general? Would it depend on how the teller processes the transaction? I would guess they usually would process it as a cash withdrawal and then deposit unless the customer writes a check to the bank in exchange for the cashier's check.

1) if the intent was to purchase the check with the cash then yes I would complete the MIL. At my bank it was once policy to deposit funds to the account first then withdraw for the purchase, but we have stopped that activity. Even then we still completed the MIL as the intent was to purchase the check with the cash.

2) if the funds were already on deposit and no cash was brought into the bank, I would not complete the MIL.

Hope this helps!
I have those days too!

That's where I am getting caught up as a small bank. How do I know the customer's intent with their funds? Does it change your mind if the customer brought in the cash yesterday and came back today to buy the cashiers check with those funds? A week later? A month? Seems like a slippery slope.

see page 106 of the pdf: https://www.ffiec.gov/bsa_aml_infobase/documents/BSA_AML_Man_2014.pdf

generally if they deposit funds and purchase a check in the same day you are supposed to be able to retrieve the required info if it is between $3,000 - $10,000.

Thanks

IMO, if the customer deposited the funds then immediately withdrew them to purchase the check....they intended to purchase the check with those funds.The customer may think its bank policy to deposit first, or they wanted to for their own bookkeeping.
If the cash deposit happened yesterday or two days ago, maybe their intent was to offer a personal check and the person wouldn't accept a personal check.....I would definitely ask the questions to find out. For a deposit from last week or a month ago.....again, just my opinion, I feel the funds were on deposit and not immediately withdrawn to purchase the check and wouldn't complete an MIL. Again, these are just my opinions and how I would advise my bank in those situations.

I think if you have a definitive answer when asked by the regulators and follow FFIEC guidance and your procedures you'll be fine.

Here's the FinCEN Guidance with the exam manual cites:

https://www.fincen.gov/resources/statute...tution-policies

The guidance specifically references purchases made on the same business day of deposit. Don't read more into this than what is actually there.