BSA/AML Examiner School Case Study

Internal Use Only

Thus, any person subpoenaed or otherwise requested to disclose a SAR or the information contained in a SAR, except when such disclosure is requested by FinCEN or an appropriate law enforcement or federal banking agency, shall decline to produce the SAR or to provide any information that would disclose that a SAR has been prepared or filed. FinCEN and the Bank's federal banking agency should be notified of any such request and of the Bank's response. Sharing Suspicious Activity Reports The Bank Secrecy Act currently prohibits the Bank from sharing a SAR with an affiliate other than a controlling company or head office, both in instances where the affiliate is located inside or outside the United States. Note: The knowledge of a SAR being filed may not be disclosed to the Bank's controlling entity or party if there is a reason to believe it may be disclosed to any person involved in the suspicious activity that is the subject of the SAR. Safe Harbor Banks from Civil Liability for Suspicious Activity Reporting Under federal law, the Bank, the BOD, officers, employees and Bank agents will not be held liable to any person for reporting suspicious transactions on the Suspicious Activity Report (SAR). In addition, it is against the law to tell a suspect or customer about the information reported on the SAR, or that a SAR has been completed. Failure to file the forms when appropriate can cause tines to be levied on both the Bank and the BOD. Record Retention for SAR The BSA Officer will retain the following information for 5 years: • The Bank will retain all copies of SARs and all supporting documentation of the SAR (i.e., checks, deposits, loan documents, general ledger tickets); • Any confession, admission or explanation provided by the suspect or any person who benefited from the transaction; • Evidence of any cover-up or attempts to deceive federal or state examiners or others; • The Bank will maintain documentation of all suspicious activity investigations, regardless of whether a SAR was filed. The following represents suspicious activity that should be reported: • Any BSA violation, such as structuring or money laundering • Bribery or gratuity • Check fraud • Commercial loan fraud

• Computer intrusion • Consumer loan fraud • Counterfeit check • Counterfeit credit or debit card • Counterfeit instrument • Credit card fraud • Debit card fraud • Defalcation or embezzlement • False statement

For Training Purposes Only

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