Based on what I read on FinCEN Guidance 2014-G001 on MRBs and Marijuana LIMITED SAR filing, I’m understanding this as FIs should file basically letting FinCEN know that we have an MRB yet they are not violating any law or no suspicious activity has been identified.

So couple questions comes to mind:

1. If no suspicious activity is detected, then no dollar amount will be reported? And no date range?

2. In the narrative, do we just identify the business, related parties, address?

3. What boxes do we need to check on the SAR form? “Other” and type “Marijuana Limited SAR”?

4. If we start filing a Limited SAR and continue the relationship, then do we forever continue to filing Limited SAR (if nothing changes)?

From the Guidance: The content of this SAR should be limited to the following information: (i) identifying information of the subject and related parties; (ii) addresses of the subject and related parties; (iii) the fact that the filing institution is filing the SAR solely because the subject is engaged in a marijuana-related business; and (iv) the fact that no additional suspicious activity has been identified. Financial institutions should use the term “MARIJUANA LIMITED” in the narrative section.

This answers questions 1, 2, and 3.

The answer to 4 is yes.

I wanted to bring this back up again. Is it accurate to check the "no amount involved" box in line 29 if we are filing a marijuana limited SAR where we are only filing the SAR because we have to and not because there is suspicious activity in the account?

No. By definition, engaging in activity that violates federal law is suspicious which is why FinCEN madates that we file a SAR in the first place. You include the dollar amount of all the marijuana related activty on your SARs.

I agree with BrianC. There is generally amounts involved if the account is active. What we recommend is a quick summary of cash activity, and other non-cash deposits, and the statement, as you mentioned originally that no suspicious activity was found. And yes, you will need to file that continuing SAR every 90 days until the account is closed (at which point you'd file the termination SAR).

A BSA Officer I am working with was advised by their compliance officer that if a MRB Limited SAR has new activity that changes it to MRB Priority or if the bank closes the account and it becomes MRB Terminated, that they have to do the status change on a new initial SAR rather than on the continuing SAR they have been doing for the MRB Limited status. I can't find anything that states this, and since the information isn't going to be found until the narrative section, I struggle to find the reason for making it an initial. Does anyone have information on this?

You have to go all the way back to FinCEN's SAR Tips and Trends Issue 8. This was published in 2005. It notes that when investigating continuing activity, if new activity is discovered, that triggers an initial SAR filing within 30 days of identifying the new activity..

For situations where the nature of the activity reported changes after the original Suspicious Activity Report filing, the suspicious activity is no longer considered “ongoing”--e.g., the customer in the above example begins sending or receiving funds in addition to making structured withdrawals. In such cases, the institution should consider the changed activity a new transaction and should file a new Suspicious Activity Report within the normal filing deadlines, rather than updating a previous filing after 90 days.

Thank you!