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Safe Harbors

FinCEN has issued a legal opinion, Chief Counsel Opinion 2005-1, on the preservation of safe harbors for suspicious activity reporting. The question posed was whether making a direct contact to law enforcement to report an activity already reported on a SAR would forfeit the safe harbor. The answer is that the safe harbor is preserved, not forfeited. The opinion notes that the SAR rules contemplate direct contacts with law enforcement and that this may further the purpose of the reporting system. The opinion notes that the safe harbor language expressly protects "voluntary disclosure of a possible violation of law or regulation to a government agency." This protection exists without regard to whether the disclosure was required. A decision to make a direct contact as well as submit the form is protected. The critical element, of course, is to file a SAR.

Copyright © 2005 Compliance Action. Originally appeared in Compliance Action, Vol. 10, No. 6, 5/05

First published on 05/01/2005

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