Compliance Blog

Written by Bernadette Clair, Regulatory Compliance Counsel

Last Thursday, FinCEN began accepting the new Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) via the BSA E-Filing System.  These reports replace the forms credit unions currently use – FinCEN Form 104 (CTR) and TD F 90-22.47 (SAR), now referred to as the “legacy reports.”  The Designation of Exempt Person form has also been made available for e-filing.

FinCEN issued guidance to assist institutions filing the new reports and respond to industry questions about the new forms.  Updates to the CTR Electronic Filing Requirements and SAR Electronic Filing Requirements were also released.

Mandatory Deadline.  The deadline for using the new CTR and SAR reports is March 31, 2013.  Until that time, you can choose to file the new reports, the legacy reports or a combination of both.  Also be on the lookout for FinCEN webinars on the new reports, expected to be announced in the near future.

What’s different about the new reports?  First, the new reports can only be filed electronically via the BSA- E-Filing System.  Remember that e-filing, regardless of whether you file new reports or legacy reports, is mandatory for most BSA reports beginning on July 1, 2012.  We blogged about this requirement March 7^th.

Second, those of you who have already taken a look at the new reports have no doubt noticed that the new CTR and SAR have additional data elements.

FinCEN states in the guidance that “the new CTR and SAR forms do not create any new obligations or otherwise change existing statutory and regulatory expectations of financial institutions[.]”  Some of the concerns raised by industry about these expanded data fields are addressed in the guidance.  FinCEN has indicated that it may also develop additional guidance as necessary.

Tomorrow, we’ll take a closer look at some of these expanded data fields and the expectations set forth in FinCEN’s guidance.