FINANCIAL INSTITUTIONS MUST ADHERE TO STRINGENT REPORTING STANDARDS
Strengthening the Fight Against Financial Crimes
In a move to enhance its efforts against financial crimes, the Financial Crimes Enforcement Network (FinCEN) has issued new guidelines for financial institutions to report suspicious activities.
Conduct Thorough Searches and Screenings
According to FinCEN’s latest advisories, financial institutions are required to conduct thorough searches and screenings to identify potential risks associated with their customers. These searches include:
- Media searches
- Particular screenings
The goal is to provide a clear understanding of the potential risks and take necessary measures to mitigate them.
Reporting Suspicious Activities
Financial institutions must provide a clear, complete, and concise description of the suspicious activity that led them to file a report. The reports must be filed electronically, and any supporting documentation or business record equivalent must be retained for five years from the date of the report.
Character Limits for Suspicious Activity Reports (SARs)
FinCEN has clarified its stance on character limits for SARs. Financial institutions are advised not to file additional SARs solely to accommodate narratives that exceed the 20,000 character limit. Instead, they should focus relevant information in the narrative as much as possible and include any additional information as an attachment or supporting documentation.
Enhancing Cooperation with Law Enforcement Agencies
The new guidelines aim to enhance cooperation between financial institutions and law enforcement agencies in identifying and disrupting financial crimes. By adhering to these guidelines, financial institutions can help ensure that their reports are thorough, accurate, and easy to review.
Key Takeaways
- Financial institutions must conduct thorough searches and screenings to identify potential risks associated with their customers.
- SARs must be filed electronically, and any supporting documentation or business record equivalent must be retained for five years from the date of the report.
- Character limits for SARs are 20,000 characters; financial institutions should focus relevant information in the narrative as much as possible and include any additional information as an attachment or supporting documentation.
Contact Us
For more information on FinCEN’s guidelines for reporting suspicious activities, please visit [insert website URL].