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#791748 - 08/09/07 02:00 PM SAR for Board Member or Upper Management
ComplianceGurl, CRCM Offline
Gold Star
Joined: Jul 2007
Posts: 497
Hello! Can anyone give me any information on filing a SAR on a bank board member or uppermanagement employee of the bank? I searched various places for guidance and have not been able to find anything. My questions would include confidentiality, reporting to other board member...
Thanks for any help you can give!

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#791784 - 08/09/07 02:30 PM Re: SAR for Board Member or Upper Management ComplianceGurl, CRCM
Little Miss BSA Offline
Diamond Poster
Little Miss BSA
Joined: May 2007
Posts: 1,185
Miami
I never really found anything when I had this situation at a previous institution. The SAR wasn't on the BOD himself, but rather on a close family memebr. What I did was file the SAR accordingly and with all of the needed detail. I asked for an emergency meeting of the BSA Committee, which included several BOD and presented the SAR at that meeting and stressed the importance of confidentiality and reminded him that he should not be made aware. When it came time to present the SARs filed for the month at the monthly BOD meeting that one was left out.

I don't know if I acted corectly but I handled the situation as best I could under the circumstances.
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#791814 - 08/09/07 02:57 PM Re: SAR for Board Member or Upper Management ComplianceGurl, CRCM
Retread Offline
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Retread
Joined: Oct 2003
Posts: 2,548
Southeast
This is probably the closest thing you are going to get for any guidance on your issue, and it is from the SAR Activity Review, Issue #2.

In the rare instance when suspicious activity is related to an individual in the
organization, such as the president or one of the members of the board of directors,
the established policy that would require notification of a SAR filing to such
an individual should not be followed. Deviations to established policies and
procedures so as to avoid notification of a SAR filing to a subject of the SAR
should be documented and appropriate uninvolved senior organizational personnel
should be so advised.
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

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#791885 - 08/09/07 03:52 PM Re: SAR for Board Member or Upper Management Retread
ComplianceGurl, CRCM Offline
Gold Star
Joined: Jul 2007
Posts: 497
Thanks for the responses!

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#792066 - 08/09/07 06:05 PM Re: SAR for Board Member or Upper Management ComplianceGurl, CRCM
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
If you are supervised by the OCC or the OTS, their SAR filing regulations contain the explicit instructions that serve as the basis for the generic advice in the BSA/AML handbook. The mechanics of how you handle the "member of senior management" could vary considerably from those you follow in connection with a director. The former does not involve the same direct conflict between the requirement that you report to the board vs. the prohibition against notifying the subject that a SAR was filed.

There is no mechanism for omitting notification of a director because the SAR is being filed on a family member, business associate, best friend, etc.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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