(a) General.
(1) Every bank shall file with the Treasury
Department, to the extent and in the manner required by this section,
a report of any suspicious transaction relevant to a possible violation
of law or regulation. A bank may also file with the Treasury Department
by using the Suspicious Activity Report specified in paragraph (b)(1)
of this section or otherwise, a report of any suspicious transaction
that it believes is relevant to the possible violation of any law
or regulation but whose reporting is not required by this section.
(2) A transaction requires
reporting under the terms of this section if it is conducted or attempted
by, at, or through the bank, it involves or aggregates at least $5,000
in funds or other assets, and the bank knows, suspects, or has reason
to suspect that:
(i) The transaction involves funds derived
from illegal activities or is intended or conducted in order to hide
or disguise funds or assets derived from illegal activities (including,
without limitation, the ownership, nature, source, location, or control
of such funds or assets) as part of a plan to violate or evade any
Federal law or regulation or to avoid any transaction reporting requirement
under Federal law or regulation;
(ii) The transaction is designed to
evade any requirements of this chapter or of any other regulations
promulgated under the Bank Secrecy Act; or
(iii) The transaction has no business
or apparent lawful purpose or is not the sort in which the particular
customer would normally be expected to engage, and the bank knows
of no reasonable explanation for the transaction after examining the
available facts, including the background and possible purpose of
the transaction.
3-1711.31
(b) Filing procedures.
(1) What to file. A suspicious transaction shall be reported by completing a Suspicious
Activity Report (“SAR”), and collecting and maintaining supporting
documentation as required by paragraph (d) of this section.
(2) Where to file. The SAR shall be filed with FinCEN in a central
location, to be determined by FinCEN, as indicated in the instructions
to the SAR.
(3) When to file. A bank is required to file
a SAR no later than 30 calendar days after the date of initial detection
by the bank of facts that may constitute a basis for filing a SAR.
If no suspect was identified on the date of the detection of the incident
requiring the filing, a bank may delay filing a SAR for an additional
30 calendar days to identify a suspect. In no case shall reporting
be delayed more than 60 calendar days after the date of initial detection
of a reportable transaction. In situations involving violations that
require immediate attention, such as, for example, ongoing money laundering
schemes, the bank shall immediately notify, by telephone, an appropriate
law enforcement authority in addition to filing timely a SAR.
3-1711.32
(c) Exceptions. A bank
is not required to file a SAR for a robbery or burglary committed
or attempted that is reported to appropriate law enforcement authorities,
or for lost, missing, counterfeit, or stolen securities with respect
to which the bank files a report pursuant to the reporting requirements
of 17 CFR 240.17f-1.
(d) Retention of records. A bank shall maintain a copy of any SAR
filed and the original or business record equivalent of any supporting
documentation for a period of five years from the date of filing the
SAR. Supporting documentation shall be identified, and maintained
by the bank as such, and shall be deemed to have been filed with the
SAR. A bank shall make all supporting documentation available to FinCEN
or any Federal, State, or local law enforcement agency, or any Federal
regulatory authority that examines the bank for compliance with the
Bank Secrecy Act, or any State regulatory authority administering
a State law that requires the bank to comply with the Bank Secrecy
Act or otherwise authorizes the State authority to ensure that the
institution complies with the Bank Secrecy Act, upon request.
3-1711.33
(e) Confidentiality of SARs. A SAR, and any information that would reveal the existence of a
SAR, are confidential and shall not be dis- closed except as authorized
in this paragraph (e). For purposes of this paragraph (e) only, a
SAR shall include any suspicious activity report filed with FinCEN
pursuant to any regulation in this chapter.
(1) Prohibition
on disclosures by Banks.
(i) General rule. No bank, and no director, officer, employee, or
agent of any bank, shall disclose a SAR or any information that would
reveal the existence of a SAR. Any bank, and any director, officer,
employee, or agent of any bank that is subpoenaed or otherwise requested
to disclose a SAR or any information that would reveal the existence
of a SAR, shall decline to produce the SAR or such information, citing
this section and 31 U.S.C. 5318(g)(2)(A)(i), and shall notify FinCEN
of any such request and the response thereto.
(ii) Rules
of construction. Provided that no person involved in any reported
suspicious transaction is notified that the transaction has been reported,
this paragraph (e)(1) shall not be construed as prohibiting:
(A) The disclosure
by a bank, or any director, officer, employee, or agent of a bank,
of:
(1) A SAR, or any information
that would reveal the existence of a SAR, to FinCEN or any Federal,
State, or local law enforcement agency, or any Federal regulatory
authority that examines the bank for compliance with the Bank Secrecy
Act, or any State regulatory authority administering a State law that
requires the bank to comply with the Bank Secrecy Act or otherwise
authorizes the State authority to ensure that the bank complies with
the Bank Secrecy Act; or
(2) The underlying facts, transactions, and documents upon
which a SAR is based, including but not limited to, disclosures:
(i) To another financial institution,
or any director, officer, employee, or agent of a financial institution,
for the preparation of a joint SAR; or
(ii) In connection with certain employment
references or termination notices, to the full extent authorized in
31 U.S.C. 5318(g)(2)(B); or
(B) The sharing by a bank, or
any director, officer, employee, or agent of the bank, of a SAR, or
any information that would reveal the existence of a SAR, within the
bank’s corporate organizational structure for purposes consistent
with title II of the Bank Secrecy Act as determined by regulation
or in guidance.
(2) Prohibition
on disclosures by government authorities. A Federal, State, local,
territorial, or Tribal government authority, or any director, officer,
employee, or agent of any of the foregoing, shall not disclose a SAR,
or any information that would reveal the existence of a SAR, except
as necessary to fulfill official duties consistent with title II of
the Bank Secrecy Act. For purposes of this section, “official duties”
shall not include the disclosure of a SAR, or any information that
would reveal the existence of a SAR, in response to a request for
disclosure of non-public information or a request for use in a private
legal proceeding, including a request pursuant to 31 CFR 1.11.
(f) Limitation
on liability. A bank, and any director, officer, employee, or
agent of any bank, that makes a voluntary disclosure of any possible
violation of law or regulation to a government agency or makes a disclosure
pursuant to this section or any other authority, including a disclosure
made jointly with another institution, shall be protected from liability
to any person for any such disclosure, or for failure to provide notice
of such disclosure to any person identified in the disclosure, or
both, to the full extent provided by 31 U.S.C. 5318(g)(3).
3-1711.34
(g) Compliance. Banks
shall be examined by FinCEN or its delegatees for compliance with
this section. Failure to satisfy the requirements of this section
may be a violation of the Bank Secrecy Act and of this chapter. Such
failure may also violate provisions of title 12 of the Code of Federal
Regulations.
