I thought I was buying a car through a reputable company. They told me to wire the money to an account through their bank. I wired the money and a crook picked it up. Law enforcement said it was a fraudulant account and that the ID was most likely fake. Would the bank not be accountable for opening at least two fraudulant accounts, and then for letting someone walk away with the large sums of cash from those accounts? What about the SAR and CTR required by the Patriot Act as well as proving ID?
The bank has to have a reasonable belief as to who that person was who opened the account. If customers have fake IDs, and if they bring with them bills, showing they are at a particular address, and the SSNs were not obviously to deceased persons or otherwise fraudulent, the bank met its requirement. Buyers sometimes need to check out with whom they're doing business too.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The bank has to have a reasonable belief as to who that person was who opened the account. If customers have fake IDs, and if they bring with them bills, showing they are at a particular address, and the SSNs were not obviously to deceased persons or otherwise fraudulent, the bank met its requirement. Buyers sometimes need to check out with whom they're doing business too.
