SAR Filing When Suspicious Activity Resumes
A bank files a suspicious activity report and then a continuing activity report after 90 days, if there is continuing activity during that period. If there is no suspicious activity during the 90 days but there is at a later date, should the bank file an initial report again or a continuing activity report?
Under guidance provided by FinCEN, financial institutions with suspicious activity report (“SAR”) requirements may file SARs for continuing activity after a 90-day review, with the filing deadline 120 days after the date of the previously related SAR filing. Financial institutions may also file SARs on continuing activity earlier than the 120 day deadline if the institution believes the activity warrants earlier review by law enforcement.
This means that, for filings where a subject has been identified, the bank should follow this timeline:
- Identification of suspicious activity and subject (after a review determining that the activity is suspicious within the meaning of the SAR regulation): Day 1
- Filing of initial SAR: Day 30
- End of 90 day review: Day 120 (90 days after filing of initial SAR filing on Day 30)
- Deadline for filing continuing activity report: Day 150 (120 days after filing of initial SAR on Day 30).
The filing of the continuous activity report is based on the 90-day review. Its purpose is to notify law enforcement of the continuing nature of the activity in the aggregate. If there has been no continuing activity during that period, the filing of a continuing activity report is not warranted.
If no activity has occurred during the 90-day period, the bank should document that fact for its file. As a practical matter, it should place the person subject to the SAR on a heightened review procedure, to be sure that the previous quarter was not an anomaly.
Subsequent suspicious activity, if it occurs, will be reported in the filing of a new initial SAR. If it concerns the same subject as the earlier SAR, the earlier SAR should be referenced in the Narrative section to assist the authorities in understanding the situation.
Likewise, if the nature of the activity has changed since the filing of the initial SAR, it is no longer considered on-going, and a new initial SAR will be filed. FFIEC, Bank Secrecy Act/Anti-Money Lanudering InforBase, Suspicious Activity Reporting – Overview; SAR Activity Review – Trends, Tips, & Issues, Issues 8 and 21.