Does a bank have to continue filing SARs every 90 days for unregistered MSBs? There is no other suspicious activity associated with the account.

Just out of curiosity, why would you continue to bank an unregistered MSB? I would consider that an extremely risky activity. (My own opinion, obviously)

Yes. Being an unregistered MSB is considered ongoing suspicious activity, especially if you've contacted them to register. We have a process in place, and if unregistered ones do not register, we close the account.

That's putting it kindly. They are breaking the law. The account should be closed if they refuse to register.

Closing an unregistered MSB is an individual bank decision. There is no requirement to do so.

Randy, would you agree that if the account is not closed, then the SARs should still be filed if the activity continues?

I agree Randy. That's just my opinion on closing the account. I can't possibly see the how keeping it open can be justified. It's one thing to suspect a customer is breaking the law and file a SAR. It's an entirely different ball game to know someone is breaking the law.

Randy, would you agree that if the account is not closed, then the SARs should still be filed if the activity continues?

Yup - every 90 days.

This situation, like all customer on which are a SAR is filed, would follow my two simple rules.

1. Does keeping the account represent a risk to the bank?

2. Is the account unprofitable?

A yes to either and the account is gone after the first filing.

Banks are required to file SARs on MSBs that are not registered at the federal level or licensed (as required) at the state level. Apparently because the Times Square bomber's operations were financed through non bank financial institutions, FinCEN has been on the hunt for unregistered MSBs over the last several months. Accordingly, the SAR filing instruction is even more important than it was before.

There is no exemption from filing continuation SARs on any subject, including this one.

The irony is powerful, but I absolutely agree: My bank would only file multiple SARs on profitable customers. The others would be gone long before the continuation SAR was due.

Some are gone before the first SAR is filed

Thank you. An examiner stated that continued filing was unnecessary and I did not think that was correct.