When must a bank file a Suspicious Activity Report? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.

Details / How it works

Section 21.11 requires a national bank (and any OCC-licensed Federal branch or agency of a foreign bank) to file a SAR on the form prescribed by the OCC, sending the completed SAR to FinCEN. Filing is triggered when the bank detects a known or suspected Federal criminal violation or a suspicious transaction related to money laundering or a violation of the Bank Secrecy Act.

Under paragraph (d), a national bank must file no later than 30 calendar days after the date of initial detection of facts that may constitute a basis for filing. If no suspect was identified on the date of detection, the bank may delay filing for an additional 30 calendar days to identify a suspect, but in no case may reporting be delayed more than 60 calendar days after the date of initial detection. When a reportable violation is ongoing, the institution must immediately notify an appropriate law enforcement authority and the OCC by telephone, in addition to filing a timely SAR.

Under paragraph (h), the bank's management must promptly notify its board of directors (or a designated committee of directors or executive officers) whenever a SAR is filed. If the suspect is a director or executive officer, the bank may not notify the suspect under 31 U.S.C. 5318(g)(2), but must notify all directors who are not suspects. Records must be retained for five years from the date of filing, per paragraph (g).

Numbers & thresholds

Exceptions & edge cases

Under paragraph (f), a national bank need not file a SAR for (1) a robbery or burglary committed or attempted that is reported to appropriate law enforcement authorities, or (2) lost, missing, counterfeit, or stolen securities if it files a report pursuant to 17 CFR 240.17f-1.

Under paragraph (k), SARs are confidential. A national bank and its directors, officers, employees, and agents are prohibited from disclosing a SAR or any information that would reveal its existence. Upon being subpoenaed or otherwise requested to disclose a SAR, the bank must decline to produce it, citing 12 CFR 21.11 and 31 U.S.C. 5318(g)(2)(A)(i), and must notify the Director of the OCC's Litigation Division and FinCEN. Authorized disclosures include those to the OCC, FinCEN, or any Federal, State, or local law enforcement agency; to another financial institution for preparation of a joint SAR; in connection with certain employment references or termination notices under 31 U.S.C. 5318(g)(2)(B); and within the bank's corporate organizational structure for purposes consistent with title II of the Bank Secrecy Act.

Under paragraph (l), a national bank (and its directors, officers, employees, and agents) that makes a voluntary disclosure or a disclosure under the SAR section — including a joint disclosure with another financial institution — is protected from liability to any person for such disclosure or for failure to provide notice, to the full extent provided by 31 U.S.C. 5318(g)(3).

Under paragraph (m), the OCC may grant a national bank an exemption from the requirements of section 21.11; exemption requests that also require relief from Department of the Treasury regulations at 31 CFR chapter X must be submitted in writing to both the OCC and FinCEN for joint approval.