SAR for Discrepancies in Employment Application?

Answered by:

Question:

Section 355 of the USA PATRIOT Act. Are we required to file a SAR when we have uncovered discrepancies in an individuals employment application?

Answer:

Lying on a job application to a bank is not a federal crime and does not mandate a SAR filing.

Section 355 is not a SAR filing trigger. Instead, it describes circumstances where a bank may disclose to another bank that a former employee was suspected of being involved in illegal activity. The disclosure must be in a written employment reference requested by the other bank.

If you think this sounds like the opening scene from "Flashdance in a Mine Field" you recognize the issues involved.

First published on BankersOnline.com 6/20/05