The latest edition of the SAR Activity Review has some interesting information about SARs filed for ongoing activity.
See page 53.

SAR Activity Review

VERY important information, because it gives you a longer time frame for filing that continuing activity SAR. Here's the pertinent statement from FinCEN:

"The phrasing of the continuing activity SAR in the April 2005 article more accurately reflects FinCEN’s original intent in providing administrative relief. Financial institutions with SAR requirements may file SARs for continuing activity after a 90 day review with the filing deadline being 120 days after the date of the previously related SAR filing. Financial institutions may also file SARs on continuing activity earlier than the 120 day deadline if the institution believes the activity warrants earlier review by law enforcement."

I plan to send copies to our outside auditors and to OCC. OCC recently wrote us up since a few of our follow-ups were filed in 91 days because somebody made the mistake of using three months instead of 90 calendar days.

This is a welcomed clarification by FinCEN.

Yes, big difference in the timing.

I like it when "Important Information" means "Good News".

Thank you so much for this information. I sometimes don't know what I would do without BOL!

Yay! This is a welcome clarification for sure!

Sounds a bit like FinCEN saying "we really meant 120 days all along." Can banks expect any retro-active relief?

LOL Jeff, I thought the same thing like "you all misunderstood what we said all along".

Was the SAR Activity Review signed by Emily Litella?

In any event - good news because otherwise, you have to start looking at the activity within 60 days in order to get the thing filed by the 90th.

I agree this is a welcome change. Banks who would set their reminder at 90 days under the old method would always be late.

So I was speaking to our BSA/AML software provided about this very topic to see if they were going to update their SAR Manager. The company called FinCEN and spoke to a help rep and was told that the 90 deadline has not been extended to 120 days.

I tried calling the help line for clarification, but they are closed. I will be calling first thing tomorrow morning.

They must think that the people at the helpless line actually read their own publications?

Maybe I was alway misinterpreting the guidance, but I took it that you did a review of the 90-day period after the filing of the SAR, and factored in the rule that you file no later than 30 calendar days from the date of the initial detection of facts. So I always started my 90-day review on that 90th day and filed as soon as I was finished analyzing the account transactions (usually well within the 30-day limit).

Apparently you have been clairvoyant Many a bank have been cited for not filing a follow-up SAR at least every 90 days.

In reality, it really doesn't buy you much.

If suspicious activity was noted on March 31st and you filed on April 5th, in the past the regulators would write you up if you didn't file another SAR on or before the expiration of 90 days from April 5th. Now you have a few extra days.

Clairvoyant = lucky!

From the original guidance:



As a general rule of thumb?

Should?

I always thought that clairavoyance was attributable to the lowly fieled examiner who had the stones to cite the 91 day filing as a violation. FinCEN's just cleaning up the "gotcha" allowed to examiners because of the original soft wording. As the Form 111 requires identification of ongoing reports, it's very helpful.

ACB: you probably use BAM, correct? I had the same discussion with them yesterday and they stated that "Kevin" at the FinCEN Help Desk re-iterated the 90 day requirement, which is counter to how everyone else interprets the recent publication. I would be interested to hear about your conversation with FinCEN.

If I read a helpful and relatively crystal-clear statement by FinCEN like the one we're talking about, I wouldn't even be tempted to contact the Helpline for more information.

John is correct. The helpline personnel have no authority to interpret the rules. The guidance is already in an official FinCEN publication - go with that.

Correct.

While I agree with Randy and John, I will have a problem with IA when they see my AML software provided shows SAR's past due at 90 days. I'll follow up once I speak to FinCEN.

Just tell IA to deal with it. Are they incapable of thinking for themselves? They need to look at reports to determine whether or not something is late? Either BAM will fix the parameters or not. Showing past due at 90 days is probably not a bad thing, it just triggers the reminder that the SAR has to be filed in the next 30 days. Just treak your procedures to reflect what that warning now means. Speaking to FinCEN is not going to buy you anything. They will reiterate either what is written in the SAR Review or they will make up thier own version. If you think the call is going to change the response from the call center, depending on the specific person that answers the phone, well good luck.

Actually they are incapable. They are borderline robotic with their audits Randy. I have been lobbying for a change for some time now, but that’s a different issue.

I just got off the phone with "Kevin at FinCEN" and I was told that the deadline has not changed. The filing deadline is 90 days from the initial SAR filing. This individual believes that we are reading the guidance incorrectly. Now don't kill the messenger, I'm just relaying what the rep. at FinCEN told me.

I did ask if FinCEN would be clarifying this in the future, but I was told nothing is imminent.