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#1589946 - 08/10/11 12:12 PM SAR Disclosures
Retread Offline
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Interesting article saying that bank filed SARs on customer.

http://tinyurl.com/3ucs3fz
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#1589967 - 08/10/11 01:34 PM Re: SAR Disclosures Retread
Elwood P. Dowd Offline
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My initial assumption was that this was one of those where some bone headed prosecutor mentioned the SARs in an indictment. (Pretty common.) However, this story reads as if they were provided to the reporter...

On the other hand, that's impossible. wink
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#1589999 - 08/10/11 02:16 PM Re: SAR Disclosures Elwood P. Dowd
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Wow on both counts.
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#1590161 - 08/10/11 04:52 PM Re: SAR Disclosures Tater
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It reads more like the newspaper got a hold of the actual SAR itself ... reads like a narrative to me!
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#1590178 - 08/10/11 05:19 PM Re: SAR Disclosures WonderWoman
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I agree. Does anyone actually think that the writer wasn't looking at the SAR while she was writing this report?
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#1590355 - 08/10/11 07:46 PM Re: SAR Disclosures BrendaC
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I agree, that sounds like a narrative.
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#1590680 - 08/11/11 03:18 PM Re: SAR Disclosures Sing A Little
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For what it's worth, this is not some deep investigative reporter digging through and finding a SAR somewhere. It appears to me that the SAR documents may have been used or referred to by the Attorney General in an affidavit of probable cause. The suspect actually waived his right to preliminary hearing to determine if there is enough evidence to proceed to a trial so the evidence wasn't even presented before the magistrate.

Why the AG did not prepare their case on the supporting documentation rather than the SAR itself is a mystery to me. The actual charges filed don't even include money laundering/structuring.
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#1590687 - 08/11/11 03:28 PM Re: SAR Disclosures thomasj
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The bloody SAR isn't evidence of anything. mad

It's the documents that SAR references that could serve as evidence and that's what these buffoons should be citing.
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#1590707 - 08/11/11 03:45 PM Re: SAR Disclosures Elwood P. Dowd
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Not surprising. They AG allegedly just botched another drug case where a Dr. over prescribed narcotics then had patients return them to HIM personally through the back door of his office. From what I hear they never presented any evidence about what happened after he received them. Did he sell them, did he ship them outside the country, where did they go? He was found not guilty.
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#1591137 - 08/12/11 01:34 PM Re: SAR Disclosures thomasj
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I wrote to the reporter and she confirms that she got the information from an affidavit filed by the Attorney General; i.e. it is now part of the public record. I wrote her again this morning:

Thank you. There may be a larger story for you here.

It is a violation of federal law for a bank or a government official to disclose the existence of a SAR. Actually, such a disclosure is not just a violation, it’s a crime.

The regulation allows SAR disclosures by the government only if it is necessary for the government official to fulfill his duties. This disclosure was obviously unnecessary. Any evidence the government has of wrongdoing is based on the supporting documentation for the SAR. The SAR itself is not evidence of anything except the fact that that bank felt the activity was suspicious and was, thus, required by federal law to report it.

Attached is an excerpt from the December 3, 2010 Federal Register reflecting recent changes in SAR confidentiality rules. It is not these regulations, but a provision in the USA PATRIOT Act of 2001 that made such disclosures by government a criminal act. (This is not a recent development.) However, the regulations were recently clarified, supposedly to help those involved better understand the prohibition. I have highlighted some of the relevant portions.

The second attachment is an advisory from the Financial Crimes Enforcement Network, the administrator of the Bank Secrecy Act. Again, I have highlighted some portions. It explains the issues in layman’s terms, notes that the prohibition applies to law enforcement, and provides a phone number which you could call if you choose to pursue the story. You could also seek verification from your state bankers association as well as the American Bankers Association.

I am not unbiased in drawing this issue to your attention. Disclosures like this endanger the bank personnel who file the forms and make bankers lose confidence in the government’s ability to simply keep its mouth shut.

Ken
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#1591159 - 08/12/11 01:54 PM Re: SAR Disclosures Elwood P. Dowd
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Bravo Ken. I would hope that this would go somewhere, but honestly this is a very small newspaper and the reporter will likely not pursue it.

I am going to bring this to the attention of our state banker's association - I am a member of the security/fraud committee.
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#1591168 - 08/12/11 02:00 PM Re: SAR Disclosures thomasj
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You are here
:like:

I do not recall seeing an exception making it to be legal for a reporter to disclose a SAR in a newspaper. whistle
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#1591169 - 08/12/11 02:02 PM Re: SAR Disclosures Elwood P. Dowd
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Very nice, Ken!

::high ten::
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#1591172 - 08/12/11 02:12 PM Re: SAR Disclosures A_G
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Very nicely stated.
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#1591180 - 08/12/11 02:20 PM Re: SAR Disclosures #Just Jay
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I wonder if she can "read between the lines" and make the determination that regardless how she got the information, publicly available or not - she is now also guilty?? smile
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#1591188 - 08/12/11 02:24 PM Re: SAR Disclosures rlcarey
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I've sent an e-mail to the members of my committee and to several of the PBA staff. They do a tremendous job at communicating with our state government, and I am hoping they can officially address it.
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#1599617 - 09/02/11 03:40 PM Re: SAR Disclosures thomasj
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I would like to discuss this at our state banking association committee meeting next week. Obviously no one wants to make another big splash and have this in the media again, but I think it needs to be addressed. We also don't want to tick off the AG's office.

The SAR disclosure did indeed take place in the affidavit of probable cause that was filed by the agents of the AG's office.

In cases where agents are acting on information received on SARs, how do the agents complete probable cause affidavits without disclosing SAR filings? Would they not request the supporting documentation, then just refer to that as evidence in the affidavit without referencing the SAR? Any ideas on how this should have been handled?
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#1599658 - 09/02/11 04:29 PM Re: SAR Disclosures thomasj
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The OAG should have subpoenaed the supporting documentation from the bank. (If they just introduce it into evidence and there is no record that the bank was compelled to provide it, then it's pretty plain to the defendant's lawyer that a SAR was filed and the LEA just picked up the supporting documentation.) If some of the salient facts are dependent on the testimony of bank personnel then it would be obtained by affidavit prior to filing the indictment. There is simply no need to "out" the bank.

A SAR is not executed under penalties of perjury. It is not "evidence" of criminal activity, but its supporting documentation might be.
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#1599763 - 09/02/11 06:26 PM Re: SAR Disclosures rlcarey
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Originally Posted By: rlcarey
I wonder if she can "read between the lines" and make the determination that regardless how she got the information, publicly available or not - she is now also guilty?? smile


I Thought the law against disclosure was aimed at banks and government officials, not reporters? While I don't agree with her tactics, why would she be guilty of anything?
Last edited by Dallas Fan; 09/02/11 06:36 PM.
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#1599822 - 09/02/11 07:15 PM Re: SAR Disclosures Dallas Fan
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The prohibition is aimed at banks and government officials...this reporter (and the person who sent me the Spitzer SAR wink ) aren't guilty of anything.
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#1599828 - 09/02/11 07:23 PM Re: SAR Disclosures Elwood P. Dowd
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Originally Posted By: Ken_Pegasus
The prohibition is aimed at banks and government officials...this reporter (and the person who sent me the Spitzer SAR wink ) aren't guilty of anything.


Kind of reminds me of a "Holder in due course" which insulates the transferee.
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