Expansion of SAR Requirements to New Industries

FinCEN is in the process of expanding SAR requirements to other financial services industries and will be evaluating additional industries for future SAR requirements.

In September 2002, FinCEN issued a final rule that requires casinos and card clubs to report suspicious transactions that involve or aggregate at least $5,000 in funds or other assets. The applicability date for suspicious transaction reporting by casinos and card clubs is March 25, 2003. All casinos and card clubs will report suspicious transactions to FinCEN by submitting Treasury Form TD F 90- 22.49, Suspicious Activity Report by Casinos (SARC). The reporting deadlines and record retention requirements mirror those for other financial institutions already subject to SAR reporting requirements.

In October 2002, FinCEN issued a notice of proposed rulemaking to require insurance companies to report suspicious transactions that involve or aggregate at least $5,000 in funds or other assets. The rule applies to businesses that offer life insurance policies, annuity contracts, and other insurance products with similar features used to store value and transfer that value to another person. The rule applies only to insurance companies rather than their agents or brokers. The suspicious transactions would be reported using a new form, the Suspicious Activity Report by Insurance Companies (SAR-IC). Written comments on the proposed rule were due on or before December 16, 2002.

Also, in October 2002, a notice of proposed rulemaking was issued to require currency dealers and exchangers to report suspicious transactions. The proposed rule amends 31 CFR 103.20(a)(2) by adding a fourth reporting category for transactions suspected to involve the use of a money services business to facilitate criminal activity. Currency dealers and exchangers will report suspicious transactions by filing Treasury Form TD F 90-22.56, Suspicious Activity Report by Money Services Business. Written comments were due on or before December 16, 2002.

Excerpted from SAR Activity Review Issue 5, page 61