The Financial Crimes Enforcement Network (FinCEN) recently made some changes to its Suspicious Activity Report (SAR) filing requirements that will likely impact an IB’s AML program. Specifically, beginning July 1, 2012, any financial institution, including an IB, filing a SAR must do so electronically through FinCEN’s BSA E-Filing System. According to FinCEN, E-Filing will enhance the quality of FinCEN’s electronic data, improve its capabilities in supporting law enforcement and increase cost efficiencies.
There is no charge for using the BSA E-Filing System. FinCEN has indicated, however, that firms that file a SAR in paper form after the July 1 deadline may be subject to a civil monetary penalty of up to $500 for each improperly filed form.
In order to file a SAR through FinCEN’s BSA E-Filing System, an IB must be enrolled as a BSA E-filer. Information on how to enroll, including an E-Filing webinar, is available at http://www.fincen.gov/forms/e-filing/index.html. The enrollment process may take anywhere from 5-7 days.
FinCEN has also modified the SAR form that IBs are required to use in their filings. FinCEN, however, will continue to accept the current SAR-SF form until March 31, 2013. This form may be filed using the BSA E-Filing System.
More information on FinCEN’s E-Filing requirements is available at http://www.fincen.gov/forms/e-filing/Efiling_FAQs.html.
These changes only impact the form and method for filing SARs, and do not in any away affect the requirements of when a SAR needs to be filed or any other IB AML obligations.
Contact Information
Erin Walls | ewalls@nfa.futures.org or Sharon Pendleton | spendleton@nfa.futures.org
