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#1468385 - 11/16/10 06:12 PM File a SAR - Being told not to??? HELP!
Anonymous
Unregistered

I have recommened to close a business account(s)for various reasons - (and one reason is I need to file a SAR) yet my boss (the President)(and yes I know that I report directly to the Board) does not think we need to close the account or file the SAR. Any suggestions??

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#1468386 - 11/16/10 06:17 PM Re: File a SAR - Being told not to??? HELP! Anonymous
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I would argue that closing the account is management's decision, filing the SAR is yours. File the SAR and report that fact to the Board in your monthly report (no identifying details). You can state the reason for the filing and also note that you recommend closing the account.
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I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#1468820 - 11/17/10 03:13 PM Re: File a SAR - Being told not to??? HELP! Doug Hendrickson
nemsi Offline
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Joined: Nov 2005
Posts: 383
I agree with Doug.

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#1469588 - 11/18/10 12:47 AM Re: File a SAR - Being told not to??? HELP! nemsi
Rocky P Offline
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Joined: Jun 2003
Posts: 7,650
Florida
I have a slightly different mindset on the principal, and am going to use a quote that Randy had in another forum to explain. (Thanks Randy)

"Point them to pages 75-76 of the examination manual. Unless these really are a case of blatent poor decision making, I would be kicking this up to the field office, DC and then to the ombudsman:

"The decision to file a SAR is an inherently subjective judgment. Examiners should focus on whether the bank has an effective SAR decision-making process, not individual SAR decisions. Examiners may review individual SAR decisions as a means to test the effectiveness of the SAR monitoring, reporting, and decision-making process. In those instances where the bank has an established SAR decision-making process, has followed existing policies, procedures, and processes, and has determined not to file a SAR, the bank should not be criticized for the failure to file a SAR unless the failure is significant or accompanied by evidence of bad faith."

When the OCC reviewed our SAR's and transactions that we did not file, they looked at the process and the underlying documentation. While the physical filings belonged to me, there were others involved. Why? To ensure a balance rather than just one person's decision. There are many automatic SAR's - structuring being the most common, but when there was something out of the ordinary, the CEO, executives from operations and lending got together, just to make sure that all were on the same page.

If the decision to file a SAR is rejected, the President will be the one explaining to the examiners.
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#1469591 - 11/18/10 01:07 AM Re: File a SAR - Being told not to??? HELP! Rocky P
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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I personally believe that a BSA program that allows the BSA Officer to be overridden re filing of an SAR has a serious deficiency.
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#1470010 - 11/18/10 06:45 PM Re: File a SAR - Being told not to??? HELP! Kathleen O. Blanchard
JacF Offline

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Joined: Nov 2001
Posts: 6,719
PA
Originally Posted By: MS Kaybee
I personally believe that a BSA program that allows the BSA Officer to be overridden re filing of an SAR has a serious deficiency.

I personally agree.

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#1470013 - 11/18/10 06:47 PM Re: File a SAR - Being told not to??? HELP! JacF
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
^^^^^

Totally Agree.
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#1770025 - 12/24/12 12:35 AM Re: File a SAR - Being told not to??? HELP! Rocky P
Anonymous
Unregistered

I'd be sure that case notes reflect that the decision not to file was the President's. Otherwise, if it blows up at some people might be questioning you.

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#1770986 - 12/28/12 03:39 PM Re: File a SAR - Being told not to??? HELP! Anonymous
Lele Offline
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Lele
Joined: Feb 2007
Posts: 827
In the Sun
Document, document, document. This happened at a prior bank that I worked in a few months after I left. Employee embezzlement and the acting CO was told not to file by the president & for fear of her job she did not. (The Compliance Assistant called me to tell me). I assume it was later done as the embezzlement made news and the employee was arrested and barred from working in a FI. Don't know how I would have handled it and was so glad to have left the building...Hopefully when they were next examined on BSA there was a discussion.
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Faith is seeing light with your heart when all your eyes see is darkness...

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