FinCEN?s Financial Institutions Hotline

FinCEN has established a FINANCIAL INSTITUTIONS HOTLINE (1-866-556- 3974) for financial institutions to report suspicious transactions that may relate to recent terrorist activity against the U.S. The purpose of the HOTLINE is to facilitate the immediate transmittal of this information to law enforcement.

Financial institutions identifying suspicious transactions under 31 CFR Part 103 or under the regulations of their federal supervisor's regulation are required to report such transactions by filing a SAR in accordance with applicable agency regulations, even if they provide information over the FINANCIAL INSTITUTIONS HOTLINE. Financial institutions are reminded that oral disclosures of suspicious activity made through the HOTLINE are subject to the same safe harbor from liability that applies when completing a SAR. This HOTLINE is intended to provide to law enforcement and other authorized recipients of SAR information the essence of the suspicious activity in an expedited fashion. The HOTLINE use is voluntary and does not negate an institution's responsibility to file a SAR in accordance with applicable regulations.

Even if not currently covered by the suspicious activity reporting requirements in Title 31, institutions such as casinos and securities firms are encouraged to use the FINANCIAL INSTITUTIONS HOTLINE to report suspicious activity that may relate to recent terrorist activity and to file a SAR form.

Since the HOTLINE has been activated, depository institutions as well as insurance agencies, securities firms, and MSBs, among others, have utilized it to report suspicious activity.

Callers are reminded that the FINANCIAL INSTITUTIONS HOTLINE is only for reporting suspicious activity that may be terrorist related. If general guidance is needed regarding the completion or filing of a SAR, the requestor should contact its primary regulator or call FinCEN's Regulatory Helpline at 1-800-949-2732.

Excerpted from SAR Activity Review Issue 4, page 45