A warehouse bank is a bank account at a regular commercial bank in which the funds of multiple clients are commingled or pooled for the purpose of concealing each client's actual ownership of the money. The arrangement becomes a vehicle for financial crime when a commercial bank extends credit to a smaller lender through such an account without adequate safeguards; in one documented case a warehouse line of credit was used to submit fraudulent funding requests between 2007 and 2008, causing a loss of more than 12 million dollars to the lending bank. Because the structure is built around commingling and concealment, sources on the subject treat it as inherently tied to commercial crime and fraud rather than as a neutral banking practice.
Facts
Elements of OffenseA bank account at a regular commercial bank in which all clients' funds are commingled or pooled to conceal each client's ownership of the funds 1 Notable ExampleBunte and Trust One: fraudulent funding requests on a warehouse line of credit to National City Bank, March 2007 through November 2008 1 Classification
Offense GradeSerious or Indictable Offense 1 Connections
Has Offense Grade
Entity-backed identity for the offense-grade enum value this offense already carries, resolved to a crime concept by an explicit value-to-entity map (phase 3 bucket conversion, docs\design_entity_backed_browse_buckets_20260928.md). The offense-grade fact itself stays on the offense unchanged.
Sources
1. Warehouse bank, Wikipedia
Introduction, definition
A warehouse bank account is a bank account at a regular commercial bank in which all clients' funds are commingled or pooled, for the purpose of concealing the client's ownership of the funds.
Financial crime
From March 2007 through November 2008, Bunte caused Trust One to submit fraudulent funding requests on its warehouse line of credit to National City Bank.
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