Cumulative Amount

Posted By: smickelson

Cumulative Amount - 09/24/15 04:24 PM

I'd like to get an opinion/consensus on the cumulative amount to enter in the following scenario:

10/2014 - SAR filed for structuring totaling $15,000 (initial report checked on item 1)
05/2015 - SAR filed for structuring totaling $15,000 (initial report checked on item 1)
08/2015 - SAR filed for structuring totaling $15,000 (continuing report checked on item 1)

The guidance states, "The cumulative amount represents the total amount involved in all SARs filed on the suspicious activity, including the current BSA SAR."

Given the guidance, does "all SARs filed on the suspicious activity" represent all historical SARs filed on that customer for structuring or all SARs filed on the "continuing activity" for that customer?

For example, on the above scenario, would you enter $30,000 or $45,000 in box #28?
Posted By: bcompliance

Re: Cumulative Amount - 09/24/15 04:34 PM

I took the guidance as for the current SAR period of the continuing activity. So if I was filing I would enter $30,000 in box #28. But I could be misinterpreting that as well. I'm interested to see what other people have to say as well.
Posted By: smickelson

Re: Cumulative Amount - 09/24/15 04:39 PM

I've been taking it the same way but am now second guessing myself.
Posted By: Doug Hendrickson

Re: Cumulative Amount - 09/24/15 04:46 PM

I would use the $45,000 and note as one of the first things in the Narrative the DCNs and dates of the prior SARs. To me this gives the reader the most information to use in understanding the whole picture. Or conversely, use the $30,000, but note the additional $15,000 in the narrative. I think this question has been posed before and I don't recall a clear-cut answer.
Posted By: PrimeTime

Re: Cumulative Amount - 09/24/15 04:57 PM

I would list the $30,000 in the cumulative amount as it is the cumulative amount for the chain of SARs that you are listing without a break inbetween. Then I would note the additional $15,000 and the aggregated $45,000 in the narrative, as it is pertinent information.

The break in activity in which the 90-day continuation period came and went from the 10/2014 activity without you filing another SAR ends that aggregation period, and since you filed a brand new initial SAR on 5/2015 that begins a new period for that aggregation/accumulation.
Posted By: MollyM

Re: Cumulative Amount - 09/24/15 06:12 PM

On the same note - if you filed a SAR for an amount greater than $5000 as per regulation - BUT during the 90 day review, you only find that they conducted same activity for $3,200 - would you file a subsequent SAR because the cumulative total is over $5000 or would you NOT file due to the second 90 day review being under $5000?

Posted By: loyo111

Re: Cumulative Amount - 09/24/15 06:43 PM

The note on box 28 clearly states to include the amount of all SARs including the one currently being filed - so it should be the $45,000. And Yes you should file the subsequent follow up SAR even if the follow up amount is under the $5,000 threshold - the cumulative is over the threshold and the obligation is to file and report additional activity if found to be continued.
Posted By: smickelson

Re: Cumulative Amount - 09/24/15 07:11 PM

There didn't seem to be a consensus, so I contacted FinCEN. The representative indicated that each time you start over with an "initial SAR," the cumulative amount starts over. Therefore, in my original scenario, $30,000 should be reported in the cumulative amount field. She did indicate that the previous SARs should be referenced in the narrative.
Posted By: loyo111

Re: Cumulative Amount - 09/24/15 09:00 PM

Apologies - thought they were all consecutive Follow Ups.
Posted By: PrimeTime

Re: Cumulative Amount - 09/25/15 12:55 PM

Smart move smickelson. Although I was pretty certain I was right, you also don't answer to me, or anyone else on the forum for that matter. When in doubt, contact the people that will be responsible with hitting you with the fines, they're the ones you're going to have to answer to if you're wrong!