The Hawaladar

CHAPTER FOUR-3

“Look, we really have no problems whatsoever with either the type of accounts AmeriPAK has with the bank, or thus far anything about account fees. What we would like to visit about instead, however, has to do with the bank’s Cash Transaction Reporting procedures with respect to Mr. Nasir’s accounts.”

“And what may I ask is wrong there?” Scott was again on the verge of becoming confrontational. Logan was more than just a little disappointed at Scott’s attitude, and Trotter and all of his examiners appeared somewhat put-off as well. It was a side of Global United’s CEO that Logan hadn’t seen before.

“Well, nothing that we’re sure of yet, Mr. Kruse. We’ve simply noted that except for a couple, the bank has placed most of Mr. Nasir’s companies on its Cash Transaction Reporting Exempt List—exempting them from regular reporting of large cash transactions to the federal government—and we want to ensure that your organization has exercised sufficient due diligence in that regard. Some AmeriPAK subsidiaries appear to be quite heavy users of cash, and some are not. So, we would like to discuss the bank’s methodology for determining the eligibility of those that have been listed as exempt.”

“Well, from what I understand, our policies and procedures covering the Bank Secrecy Act and Anti-Money Laundering regulations are quite comprehensive, and have never been brought into question in previous examinations by the OCC,” said Scott, “particularly as they have related to Mr. Nasir’s companies. Why all the sudden concern this time around?”

“Well, Mr. Kruse, as I am trusting you are very much aware and as I alluded to earlier, BSA and AML compliance have been areas of intense regulatory scrutiny for a very long time now,” responded Trotter, “but it just so happens to also be a real hot button for our new Comptroller, Carter Bennett. As a result, all district offices of the OCC recently received directives from him demanding that they all approach their oversight of those areas of regulatory compliance with renewed vigor in all banks within their jurisdiction. So, with all due respect, what we may or may not have done in past examinations here at Global United when it came to our reviews of those areas of concern, must and will be of little consideration this time around.”

“Okay, look, I suppose I understand,” Scott interrupted, “but if you don’t mind perhaps we could leave our review and discussion of Mr. Nasir and his AmeriPAK companies on this matter until later this afternoon. Better yet, since you have already indicated this must be a short day for you and your crew, perhaps we could even set it for the first thing Monday morning, depending on how long you think you may need to visit about the questions you have in this situation. Mr. Nasir is very concerned about confidentiality in all circumstances relating to him and his companies. So, I would rather we had this discussion at a later time when we can have a slightly more private meeting between say just me, perhaps Mr. Hart here, and you and your examination team, if that’s okay. Typically, only a few of our management team with a ‘need-to-know’ have familiarity with matters concerning Mr. Nasir and his businesses. He prefers it that way. So, if we could wait until later and handle the discussion of his situation in that manner, I know that Mr. Nasir would be most appreciative.”

Logan noticed Trotter bristle for the first time that day, but the old regulator remained polite and in control. Stifling obvious consternation, Trotter hesitated a moment before replying. “I suppose that would be okay with respect to our initial discussions, Mr. Kruse, but please understand that should we find any irregularities or feel that any questions have not been adequately answered, we will involve anyone and everyone from your organization necessary to obtain the answers that we need. I hope you realize how essential it is that we be made comfortable in matters such as this that involve a major shareholder like Mr. Nasir.”

“If we are going to be discussing our compliance with the Bank Secrecy Act, or our Anti-Money Laundering efforts and related reporting, shouldn’t I perhaps also participate in those discussions, Scott?” Sammy al-Dajani, head of bank operations, spoke up for the first time that day. “I’m in charge of the bank’s ongoing compliance with BSA and AML requirements. I’ve helped develop most all of our policies and procedures along those lines, and I’m also well aware of our handling of Nasir-related accounts in that regard. I could perhaps save everyone a great deal of time in providing Mr. Trotter the answers he needs.”

“Uh…sure, you’re probably right Sammy,” Scott replied. “It might be a good idea for you to also join us. You could perhaps more readily answer a goodly number of the questions Mr. Trotter and his team might have on the subject.”

“Fine, Mr. Kruse, we’ll wait until Monday morning to discuss those matters, and leave it up to you to decide who participates in those discussions,” said Trotter, “but please ensure that the necessary people are there to answer our questions regarding your BSA and AML reporting policies and procedures. We have a number of questions in that area.” Trotter pushed his still half-full lunch plate aside, removed his glasses and scooted his chair back. “Well, I guess if that’s the route we’re going to go, folks, what say we take a fifteen-minute break. When we resume, we’ll begin our review of the rather long list of commercial loans about which we have questions, and anyone who isn’t essential to those discussions is free to return to his or her job, with our appreciation for giving us your entire morning on such a busy day.”

Sammy al-Dajani seemed in a particular hurry to leave the room, with Scott Kruse close on his heel. On his way out, Scott explained that he had “some important matters to take care of that may preclude me from taking part in much of the loan discussion, but I’ll try to get back in here before the afternoon is over, if I can.”

Logan thought that strange. Sammy and all non-lending-related officers weren’t really needed for the afternoon meeting, but the bank president’s presence was always a plus during loan discussions, and that’s what befuddled Logan just a little. Scott had told Logan as they were walking into the meeting just that morning that he had set aside the whole day to meet with the examiners without interruption. Scott’s reactions during most of the morning meeting, and the fact that he and Sammy al-Dajani seemed to share a nervousness regarding the OCC’s regulatory review of the bank’s management of the BSA and AML-related activities for the AmeriPAK accounts bothered Logan a great deal. In the few short weeks since he had joined Global United, it had become very apparent that Scott’s relationship with the bank’s Chairman, Tariq Nasir, was a close one, far closer than what most bank CEO’s might have with an outside director, regardless their controlling ownership in the company. It seemed as though Scott made very few major decisions without first conferring with Nasir. Scott’s response when Logan asked him once about Nasir’s heavy involvement in day-to-day affairs of the bank was, “Tariq’s an extremely sharp guy and our largest shareholder. I simply have a great deal of respect for his advice, and like to use him as a sounding board on any number of things regarding the management of the bank.”

Fairly early on in his new position at Global United, it had become quite apparent to Logan that a number of the bank’s officers, specifically those of South Asian and Middle Eastern origin like Sammy al-Dajani, had far more direct contact with Mr. Nasir than one might think normal for people of their position within the bank. Thus far, Logan had perceived nothing sinister about the situation. He just simply felt it a not-so-positive management aberration that could easily become the source of future “chain of command” issues. More than likely a cultural thing worthy of keeping one’s eye on, he remembered thinking.