New FAQs Related to Suspicious Activity Reporting

On Oct. 9, the Financial Crimes Enforcement Network (FinCEN) along with the joint agencies, including the National Credit Union Administration (NCUA), issued four frequently asked questions (FAQs) related to SAR filing. The FAQs, available here, are summarized below:

• A credit union is not required to file a SAR simply because a transaction (or series of transactions) is at or near the CTR reporting threshold of $10,000. A SAR is only required if the institution knows, suspects, or has reason to suspect that the transaction(s) are designed to evade the CTR reporting requirement.
• A credit union is not required to conduct a separate review after the filing of each SAR to determine whether the suspicious activity is continuing. Instead, it can rely on its policies, procedures, and internal controls to monitor for ongoing suspicious activity.
• For ongoing suspicious activity, any subsequent SAR filing should include a full 90-day review period. For example, the credit union identifies suspicious activity on day 0. It has until day 30 to file a SAR. A full 90-day review period from the filing of the previous SAR would end on day 120. The credit union would then have until day 150 to file a subsequent SAR for the continuing suspicious activity.
• Documenting a credit union’s decision not to file a SAR is not a requirement under the Bank Secrecy Act or its implementing regulations; it is a best practice. In most instances, a short, concise statement regarding the decision not to file will suffice.