Timing Triggers for SARs

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Question:

This question is about BSA/Anti Money Laundering Operations. We have some conflicting points of view at our bank regarding when the clock starts (for 30 filing deadline) on SAR filings. Some staff are under the impression that we must file a SAR within 30 days of suspicious activity, whereas other staff believe the filing must occur within 30 days of when we determine that the activity appears suspicious. Which is it? We try to detect all suspicious activity through automated reports and research each month.

Answer:

See Question 6 from a recently published FinCEN FAQ.

The relevant quote is:

The time to file a SAR starts when the organization, in the course of its review or on account of other factors, reaches the position in which it knows, or has reason to suspect, that the activity or transactions under review meets one or more of the definitions of suspicious activity.

They are not mandating a knee jerk reaction because one person thinks something is suspicious. They want you to investigate; the time frame for filing begins to run when your bank (hopefully some deliberative body) thinks the activity is suspicious.

First published on BankersOnline.com 03/01/04