We have a situation involving foreclosure scam and question whether a SAR is adviseable.

A delinquent customer claimed they lost $1000.00 to a company promising to renegotiate their loan. He have a recorded telephone conversation in which he gives the company name, telephone #.

I originally thought we should file, but then felt we didn't have much more than the customer's claim of a loss. Others think we should still file, but I think the situation warrants us to prompt the customer to file a complaint with the FTC.

FinCEN's advisory seems to prompt a SAR filing in this case, but then reverts back to the financial institution being the victim or potential victim of a fraudulent transaction. (Ref. next 2 paragraphs)

"Second, financial institutions may become aware of such scams through their interactions with customers who have become victims. With respect to these circumstances, FinCEN is providing below a list of potential indicators of loan modification/foreclosure rescue scams.

Consistent with the standard for reporting suspicious activity as provided for in 31 C.F.R. Part 103, if a financial institution knows, suspects, or has reason to suspect that a transaction involves funds derived from illegal activity or that activities conducted or attempted by, at, or through the financial institution appear to be indicative of money laundering, terrorist financing, or other violation of law or regulation, the financial institution should then file a Suspicious Activity Report.2 As noted in FinCEN’s SAR Narrative Guidance Package,3 financial institutions must provide complete and sufficient descriptions of known or suspected criminal violations or suspicious activity in the narrative sections of Suspicious Activity Reports."

Any thoughts other than it's ok to file under the safe harbor rule?

I know I am going to catch flack for this, but I would advise you to file the SAR for the simple reason that the customer who told you that is probably not the only one of your customers that have been victimized. I would also go one step further and provide a copy to your state attorney general after you file with FinCEN. These scumbags are ripping off desperate people all over the country, and we file every time we hear about one. We have had several of our customers criminally charged for foreclosure rescue scams and credit repair scams, so we are especially sensitive about this issue.

Guidance on SAR Filing for Loan Modification/Foreclosure Rescue Scams

The safe harbor is equally applicable to "voluntary" filings. Generally, I would say that "below the threshold" filing is a waste of time. Since they are hot for this topic it is probably worthwhile, particularly if you follow the instructions in the guidance regarding keywords. It would seem to me that most of this activity would otherwise be below the threshold depending on what you identify as the amount involved.