On Dec. 21, 2006, the Financial Crimes Enforcement Network ("FinCEN") and the federal banking agencies announced a new format for the Suspicious Activity Report by Depository Institutions ("SAR-DI"). The new form can be found at: http://www.fincen.gov/fincen_form111.pdf. Among its changes, the SAR-DI will enable financial institutions to submit joint filings of suspicious activity. This revision is anticipated to reduce the number of duplicate SARs filed for a single suspicious transaction.
The new SAR-DI is effective as of June 30, 2007. FinCEN released the SAR-DI form early so that financial institutions can begin planning for its implementation. On June 30, 2007, financial institutions will have the option of using either the existing or the revised SAR-DI format. The revised format for filing will become mandatory as of Dec. 31, 2007.
Please note that reports involving insider abuse may not be filed jointly. In addition, FinCEN has not, as yet, issued any instructions as to whether financial institutions must register to share information under Section 314(b) of the USA PATRIOT Act before filing a joint SAR-DI. We anticipate that FinCEN will publish additional guidance on the SAR-DI requirements prior to its formal introduction, and Reed Smith will continue to monitor developments.
If you have any immediate questions regarding the SAR-DI, contact the authors or the Reed Smith attorney with whom you normally work.
This article is presented for informational purposes only and is not intended to constitute legal advice.