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#1642755 - 12/23/11 02:16 PM Subpoena a SAR
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
Question, if a bank receives a subpoena and part of the subpoena request is for a SAR report, can the bank legally provide it. I did not believe this can be done.

Thanks for your help.

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#1642783 - 12/23/11 03:00 PM Re: Subpoena a SAR CrashDavis
ACBbank Offline
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You're correct. A bank cannot provide a SAR to any one outside of it's regulator or LE. Subpoena or not.
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#1642788 - 12/23/11 03:06 PM Re: Subpoena a SAR CrashDavis
bethel41 Offline
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I've had 2 subpoenas for SARs before, and you are correct not to give them the info. You may want to let your regulator know who is asking...ours went to bat for us and told the state's AG office that they have no right to know if one exists and to not ask again!

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#1642795 - 12/23/11 03:17 PM Re: Subpoena a SAR CrashDavis
Pup Offline
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If they are aware of the existence of a SAR, they can likely pull it themselves. However, taken from the latest "Security Officer's By-Word", published by The Kansas Bankers Surety Company:

"Part (ii) of the same regulation makes what appear to be the only exceptions for disclosure. Under Part (ii), provided no person involved in the transaction is notified, banks can disclose the SAR and its existence to FinCEN, Federal, State, and local law enforcement, and certain Federal or State regulatory authorities."

That tells me that you certainly may turn that over as part of a subpoena request. It may also be interpreted that a subpoena would not even be required for information to be shared to law enforcement.

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#1642797 - 12/23/11 03:19 PM Re: Subpoena a SAR CrashDavis
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Our SAR Review Coordinator (Western Oklahoma) indicated that once a SAR is filed, it may be shared with law enforcement.

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#1642801 - 12/23/11 03:26 PM Re: Subpoena a SAR CrashDavis
ACBbank Offline
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New York City
To clarify my original comment, as I assumed the subpoena wasn't from LE. As Bob posted, LE does not need a subpoena for a SAR or for SAR supporting documentation.
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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#1642808 - 12/23/11 03:43 PM Re: Subpoena a SAR CrashDavis
Elwood P. Dowd Offline
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Subpoenas are issued by courts, not law enforcement agencies. Regardless of who subpoenas the SAR or anything that would disclose the existence of a SAR, your are required to notify both FinCEN and your federal functional regulatory agency. You are also required to respond to the court citing the appropriate source of legal authority and decline the opportunity.

I suggest you contact FinCEN and your regulator first. They may tell you to go ahead and provide it.

If an LEA knows of the SAR and can demonstrate that to you, they do not need a subpeona for the supporting documentation.
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#1650472 - 01/12/12 09:14 PM Re: Subpoena a SAR CrashDavis
Moving Forward Offline
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Posts: 56
Michigan
Does the financial institution have the right to charge the IRS for supporting documents of a SAR if an actual summons is not issued, but a 'voluntary' request is made for the documents?

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#1650491 - 01/12/12 09:42 PM Re: Subpoena a SAR Moving Forward
Elwood P. Dowd Offline
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You can only charge the IRS for your services when they have given you permission to do so. For example, when you receive an IRS summons you may charge them for time and copies made according to their fee schedule because they have a regulation that allows them to pay those expenses.

There is no provision for charging fees for SAR documentation; legally the documents are considered to be part of the original filing - they just let you store them on their behalf.

The term "voluntary" doesn't really apply here...the applicable regulations indicate you must surrender the documents.
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#1651125 - 01/13/12 08:39 PM Re: Subpoena a SAR Elwood P. Dowd
Moving Forward Offline
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Michigan
Thanks for the input. I had come to the same conclusion...but it's always worth asking...you never know what tidbit of regulation / guidance is out there that you missed picking up on!

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