Financial Crime World

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E-Filing of BSA Reports by Banks Now Mandatory

As of July 1, 2012, banks are required to electronically file their Bank Secrecy Act (BSA) reports through the Financial Crimes Enforcement Network’s (FinCEN) BSA E-filing System. This new requirement aims to improve efficiency and effectiveness in reporting suspicious activities.

New Forms and Filing Procedures

As of April 1, 2013, all financial institutions must use the revised Bank Secrecy Act - Currency Transaction Report (BSA-CTR) and Bank Secrecy Act - Suspicious Activity Report (BSA-SAR) forms. These updated forms include new and more specific data elements to help identify suspicious activities.

FinCEN Guidance

In March 2012, FinCEN issued guidance on the new CTR and SAR forms, developed in consultation with federal banking agencies. The report highlights the addition of new data elements, which are intended to enhance the reporting process without requiring financial institutions (FIs) to revise their internal programs or develop new ones.

BSA/AML Examination Manual Update

The Federal Banking Agencies/State Liaison Committee has begun updating the BSA/AML examination manual. The updates will reflect changes in regulations, guidance, and advisories, as well as input from examiners and industry professionals.

Iranian Sanctions

  • The United States government has increased sanctions on Iran through a series of statutes and Executive Orders.
    • The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) requires U.S. banks to inquire about correspondent accounts with specified foreign banks listed on the “Part 561 List.”
    • The National Defense Authorization Act for fiscal year 2012 has blocked the property and interests in property subject to U.S. jurisdiction of all Iranian financial institutions.

Other International Concerns

  • FinCEN has repealed special measures against Myanmar Mayflower Bank and Asia Wealth Bank due to their licenses being revoked by the Government of Burma.
  • The Financial Action Task Force (FATF) has also issued a public statement on high-risk and non-cooperative jurisdictions, calling for its members and other jurisdictions to apply countermeasures to protect the international financial system.

Implications for Bank Operations

The ongoing focus on Iranian sanctions and related entities highlights the importance of staying up-to-date on sanction changes. Banks should also be aware of FinCEN’s guidance on general due diligence obligations under 31 CFR § 1010.610(a).

If you have any questions, please email askthefed@stls.frbr.org or use the “Ask a Question” feature on our website at www.askthefed.org.

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