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We Might Have a Kiter - What Do We Do?

Answered by: 
Randy Carey

Question: 
I’m new to banking and I think one of our customers is a check kiter. What do we need to do to catch the suspected check kiter? Do we have to catch the kiter or do we just fill out a SAR on the customer even though we don’t have “proof” of kiting on a suspicion?
Answer: 

First, the most important thing to do is close the account. The bank that first realizes that the customer is kiting is usually the only bank involved in a kiting scheme to not take a loss. Second, if the total dollar value of the kite is over $5,000, then a SAR would be filed. You do not need "proof" for either of these actions to take place. If you "suspect" kiting, these are the two actions that should be taken.

First published on BankersOnline.com 9/24/07

First published on 09/24/2007

Filed under: 
Security
Filed under security as: 
Kiting
SAR

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