Acc 325 - Chapter 4

Front 1

Types of bank transactions
(2)

Back 1

1. account
2. non account

Front 2

Account transactions
(df)

Back 2

Directly affect the movement of money through a bank

Front 3

Non account transactions

Back 3

Do NOT affect the flow of money through a bank
ex. receiving a bank loan

Front 4

Examples of account transactions
(2)

Back 4

1. depositing money to a savings account
2. withdrawing money from an account

Front 5

Documents related to account transactions
(5)

Back 5

1. withdrawals: checks and withdrawal slips
2. deposits: deposit slips and deposited items
3. credit/debit memos
4. signature cards
5. bank statements

Front 6

Financial invesitgator's main objective

Back 6

to track the movement of money

Front 7

Account transactions
(df)

Back 7

Financial events that directly affect the movement of money through a bank account
*directly affects means deposits to, or withdrawals from, an account

Front 8

Signature card
(2)

Back 8

1. can serve as handwriting sample
2. can lead to other witnesses or co-conspirators

Front 9

Bank statements
(2)

Back 9

1. By looking over bank statements, the investigator can reconstruct the financial transactions that occurred during a period of criminal activity.
2. He will also be able to identify sources of information or leads to the movement of money.

Front 10

Deposit slips, items, and tickets

Back 10

By retrieving and examining the items of deposit, the investigator may find additional leads to follow.

Front 11

3 types of transaction entry points:

Back 11

1. teller
2. cash services department
3. other internal departments of the bank

Front 12

From the transaction entry point, deposits go to

Back 12

the Proof Deparment

Front 13

The proof deparment
(3)

Back 13

Here, checks are
1. encrypted with the bank's own numerical codes known as proof numbers.
2. MICR encoded
3. microfilmed

Front 14

Proof numbers

Back 14

Establish the "location keys" for the bank's retrieval and bookkeeping system

Front 15

Special transactions
(2)

Back 15

1. credit and debit memos
2. any transaction that affects an account but does not involve a deposit ticket or check withdrawal requires special handling

Front 16

Credit memo
(2)

Back 16

1. indicates an increase in the account funds
2. a flow of funds into the account

Front 17

Debit memo
(2)

Back 17

1. indicates a decrease in the account funds
2. a flow of funds out of the account

Front 18

Included in credit memos
(6)

Back 18

+
1. Interest earned
2. Loan proceeds
3. Wire transfers in
4. Special collection of funds
5. Transfers between accounts
6. Electronic deposits

Front 19

Included in debit memos
(6)

Back 19

-
1. Interest payments
2. Loan payments
3. Wire transfers out
4. Check printing fees
5. Transfers between accounts
6. Electronic withdrawal (ATM)

Front 20

Non account transactions

Back 20

Financial transactions that occur at a financial institution that do not flow through an account

Front 21

Documents related to non account transactions
(6)

Back 21

1. loans
2. bank checks
3. currency transactions
4. wire transfers
5. safe deposit box
6. bank credit cards

Front 22

Loan Documents
(3)

Back 22

1. Loan Applications
2. Loan repayment ledger
3. Loan correspondence

Front 23

Bank checks include:
(4)

Back 23

1. cashiers checks
2. certified checks
3. travelers checks
4. money orders

Front 24

Currency transactions

Back 24

Involves cash conversion

Front 25

Wire transfers

Back 25

Paid for with cash or Cashier’s check drawn on another bank

Front 26

Bank statement analysis
(7)

Back 26

1. Unusually high monthly balances in comparison to known sources of income
2. Unusually large deposits
3. Deposits in round numbers
4. Deposits in repeated amounts which are not attributable to a legitimate source of income
5. Timing of deposits
6. Checks written in unusually large amounts (in relation to usual practices)
7. Lack of account activity

Front 27

Currency transaction reports

Back 27

4789 – Filed by Banks
8362 – Filed by Casinos
8300 – Filed by Businesses