Compliance Blog

Written by Bernadette Clair, Regulatory Compliance Counsel

FinCEN recently announced the release of its 21^st issue of the SAR Activity Review – Trends, Tips, & Issues. Most of the issue focuses on Money Services Businesses (MSBs) – and is a good read if your credit union provides services to MSBs.

However, I’d like to draw your attention to guidance FinCEN provides in this issue related to the timeframe for filing SARs on continuing suspicious activity.  The guidance is designed to address uncertainty over whether ongoing activity SARs should be filed every 90 days, or after 90 days of review.

FinCEN clarifies that ongoing activity SARs should be filed no later than 120 days after the date of the previously related SAR filing, allowing for 90 days of review.  Financial institutions may also file SARs on continuing activity earlier than the 120 day deadline if the institution believes the activity warrants earlier review by law enforcement.

From the guidance starting on page 53 of this issue:

“The phrasing of the continuing activity SAR in the April 2005 article more accurately reflects FinCEN’s original intent in providing administrative relief. Financial institutions with SAR requirements may file SARs for continuing activity after a 90 day review with the filing deadline being 120 days after the date of the previously related SAR filing. Financial institutions may also file SARs on continuing activity earlier than the 120 day deadline if the institution believes the activity warrants earlier review by law enforcement. All other previously published language by FinCEN addressing the continuing activity SAR that is not related to the time period of review, e.g. cross-referencing previously filed SARs in the narrative or how FinCEN interprets the term “ongoing,” still apply."  (emphasis added).

I'm sure most credit unions have been filing ongoing activity SARs within the 90 day window, so this latest guidance is a welcome break.

Have a great weekend!