Notice for Closing Acct. Suspicious Activity

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Question:

If we intend to close a checking account due to suspicious activity (SAR has been filed), how many days notice must we give the customer when they have direct deposit to the account?

Answer:

Federal government regulations call for a notice of 30 days if the account receives direct deposits of recurring federal payments (payroll, SSA, SSI, federal retirement pay, etc.) unless fraud is involved. If there aren't any direct deposits, consult your deposit agreement language for the notice requirement there.

If fraud is involved, I suggest providing the notice and closing the account today. You can make arrangements for turning over any direct deposited credits if they arrive after your summary action.

First published on BankersOnline.com 9/10/12