BSA/AML Examiner Training Series 2

SUSPICIOUS ACTIVITY REPORTS- 12 CFR Part 208.62 Reg H

Code

Failure to file SAR for funds derived from illegal activities Section 208.62(c)(4)(i) requires that a member bank file a Suspicious Activity Report (FinCEN Form 111) for transactions aggregating $5,000 or more if the covered financial institution knows, suspects, or has reason to suspect that the transaction involves funds derived from illegal activities, or is intended or conducted in order to hide or disguise funds or assets derived from illegal activities as part of a plan to violate or evade any federal law or regulation, or to avoid any transaction reporting requirement under federal law. Failure to file SAR for transactions designed to evade BSA regulations Section 208.62(c)(4)(ii) requires a Suspicious Activity Report (FinCEN Form 111) for transactions aggregating $5,000 or more if the covered financial institution knows, suspects, or has reason to suspect that the transaction is designed to evade any regulations promulgated under the Bank Secrecy Act. Failure to file SAR for transactions with no business or apparent lawful purpose Section 208.62(c)(4)(iii) requires a Suspicious Activity Report (FinCEN Form 111) for transactions aggregating $5,000 or more if the covered financial institution knows, suspects, or has reason to suspect that the transaction has no business or apparent lawful purpose, or is not the sort of transaction in which the customer would normally be expected to engage. Failure to file a timely SAR Section 208.62(d) requires a Suspicious Activity Report (FinCEN Form 111) within timeframes prescribed by this Section. Failure to maintain copies of SARs filed and supporting documentation Section 208.62(g) requires that a member bank maintain a copy of any Suspicious Activity Report (FinCEN Form 111) filed and the original or business record equivalent of any supporting documentation for a period of five years from the date of filing the Suspicious ActivityReport. Failure to notify Board of SARs filed Section 208.62(h) requires the bank notify its Board of Directors, or a committee thereof, of any reportfiled pursuant to this Section.

81,000

81,001

81,002

81,003

81,004

81,005

Revised 5/3/2023

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