If you file a SAR and are subsequently contacted by a Federal Agency doing an investigation, what information can you provide to them? Can you only discuss what was in the SAR narrative?

In my experience in working with the IRS and FBI on investigations resulting from SARs, they are more than happy to provide you a subpoena if they need more than what is contained in the SAR --- if they don't offer - ask.

We had a SAR filed and we were called by the FDIC because they were looking deeper into the investigation. They called us each month for four months to see if we knew anything further on what we originally submitted. I only answered questions they asked. If I didn't know anything for a fact, I replied that I had no information different than what was in the SAR narrative. There were some things I heard outside the bank but I could confirm nothing and therefore my response to the FDIC was that I had no new information. We've been contacted two other times in recent years. I only offer information that they ask for; I generally don't offer information (unless asked specifically) that may hinder, delay or alter an ongoing investigation.

As I understand the process, we can share anything that we used as the basis for filing the SAR (so document your investigative records carefully). We should never step outside of the information in these files. That is how we breach our safe harbor protection.

I guess I just wasn't sure of what kinds of things they would ask for - check copies, other activity, etc. I also wasn't 100% sure if a subpoena was necessary. I've read so many things that seem to conflict....

For anything outside of my SAR file - I require a subpoena. Banker1976 is right on target with the statement about not offering anything. Let them ask, provide if documented, decline if not.

Also, be careful about conducting these conversations over the telephone. If the investigator cannot come into your office, get the name and phone number, independently verify the phone number and call him/her back. Document the discussion in your file.

Phone conversations are very important too as BrendaC mentioned. What I have generally done is talk to the person and then ask if I can call them back. Let them know you have to "pull the file" from a different area and you will call them back. That's what I've done and they've been receptive to me doing that.

Thanks for the phone warning. I googled the phone number online and I also called back.

I have found that the federal investigators, from any agency, are more than happy to send a subpoena or deliver it in person. State investigators as well never gave us a problem with getting a subpoena. They often want any and all records on that customer and any related transactions.

SAR filings are required by both FinCEN and regulatory agency regulations. Both regulations agree that you must make supporting documentation available to "appropriate law enforcement agencies" on request. Neither regulation countenances the possibility that your bank would have phone conversations regarding the supporting documentation. For several reasons, I would not.

Telephone discussions of events that take place after a SAR is filed are completely off the reservation. A regulator should not ask. You should not tell.

The FDIC and its counterparts are not law enforcement agencies nor are they supposed to be acting as shills for law enforcement agencies in conducting investigations. It would take a touch of brass to ask you to review the circumstances surrounding a previous SAR and see if you felt filing an update was appropriate (wink, wink). However, expecting to be kept abreast of recent developments via telephone conversations is way, way out of bounds.

Even if a bank can verify that it is a real law enforcement agency such as the IRS/CID or the FBI on the phone, the waiver of the subpoena requirement for supporting documentation is pretty significant. Yet, no one intended that obtaining information from a bank should reflect the same degree of difficulty as ordering a pizza. If they ask you for documentation regarding SARs you have already filed, ask them to show up with identification and an expectation they will be required to sign an itemized receipt. If they want anything else, tell them you need a subpoena.

I'm confused!! I thought we were not to respond to a subpeona for an SAR. Am I missing something?

The discussion is about investigations as a result of your SAR. These investigators already have the SAR, that is why they contact the bank. They now want the detail. Info discussed in the SAR can be given without a subpoena; any other information (other accounts, etc.) requires a subpoena. I have found they generally show up supplied with a subpoena for everything.

The situation where you are supposed to call your regulator if a SAR is subpoenaed would be, for example, a law suit filed by someone who thinks they were charged with a crime as a result of a SAR that might have been filed by the bank. Their defense attorney may try to subpoena the SAR.

Whew, thanks for the explanation! I figured I was missing something.
Does anyone remember seeing a chart on when to ask for a subpeona and when it's not required? I vaguely remember seeing something like that at maybe a seminar but it's been a while ago. Just don't remember for sure.