Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual

Suspicious Activity Reporting — Overview

FinCEN’s BSA E-Filing System. The BSAR does not create or otherwise change existing statutory and regulatory expectations for banks. The BSAR includes a number of additional data elements pertaining to the type of suspicious activity and the financial services involved. Certain fields in the BSAR are marked as “critical” for technical filing purposes. This means the BSA E-Filing System does not accept filings in which these fields are left blank. For these items, the bank must either provide the requested information or check the “unknown” box that is provided with each critical field. Banks should provide the most complete filing information available consistent with existing regulatory expectations, regardless of whether or not the individual fields are deemed critical for technical filing purposes. 68 Banks should report the information that they know, or that otherwise arises, as part of their case reviews. Other than the critical fields, the addition of the new and expanded data elements does not create an expectation that banks will revise internal programs, or develop new programs, to capture information that reflects the expanded lists. 69 Refer to Appendix T for additional information on filing through the BSA E-Filing System. Timing of a SAR Filing The SAR rules require that a SAR be electronically filed through the BSA E-Filing System no later than 30 calendar days from the date of the initial detection of facts that may constitute a basis for filing a SAR. If no suspect can be identified, the time period for filing a SAR is extended to 60 days. Organizations may need to review transaction or account activity for a customer to determine whether to file a SAR. The need for a review of customer activity or transactions does not necessarily indicate a need to file a SAR. The time period for filing a SAR starts when the organization, during its review or because of other factors, knows or has reason to suspect that the activity or transactions under review meet one or more of the definitions of suspicious activity. 70 The phrase “initial detection” should not be interpreted as meaning the moment a transaction is highlighted for review. There are a variety of legitimate transactions that could raise a red flag simply because they are inconsistent with an accountholder’s normal account activity. For example, a real estate investment (purchase or sale), the receipt of an inheritance, or a gift, may cause an account to have a significant credit or debit that would be inconsistent with typical account activity. The bank’s automated account monitoring system or initial discovery of information, such as system-generated reports, may flag the transaction; however, this should not be considered initial detection of potential suspicious activity. The 30-day (or 60-day) period does not begin until an appropriate review is conducted and a

68 Refer to Filing FinCEN’s new Currency Transaction Report and Suspicious Activity Report , FIN-2012-G002, March 29, 2012. 69 Id . 70 Bank Secrecy Act Advisory Group, “Section 5 — Issues and Guidance,” The SAR Activity Review — Trends, Tips & Issues , Issue 1, October 2000, page 27.

FFIEC BSA/AML Examination Manual

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