Page 20 - ACAMS-Today-V20N3

[ AML CHALLENGES ]
During training sessions, people often ask questions revealing that they really do not under- stand how to work effectively with law enforcement. The following are just a few of those questions:
1. Question:Whatiftheactivityishumantraffickingorelderabusewheresomeone’slife may be at stake? Can I call law enforcement before filing a SAR?
Answer: YES! Right on the SAR form, fields #89-92 ask for the law enforcement contact agency, law enforcement contact name, law enforcement contact phone number (include area code) and the law enforcement contact date. If BSA officers were not allowed to contact law enforcement, FinCEN would not have put these fields on the SAR form. In addition, check the appropriate fields on the SAR and add the required key terms and the applicable FinCEN advisory number in the narrative (e.g., human trafficking would be “HUMAN TRAFFICKING FIN-2020-A008”).
2. Question:DoIneedtohaveasubpoenafromlawenforcementtoreleasethe documents tied to a SAR that I filed?
Answer: NO! FIN-2007-G003 clearly states the following,
“The Right to Financial Privacy Act (RFPA) generally prohibits financial institutions from disclosing a customer’s financial records to a Government agency without service of legal process, notice to the customer and an opportunity to challenge the disclosure...no such requirement applies when FinCEN or an appropriate law enforcement or supervisory agency requests either a copy of a SAR or supporting documentation underlying the SAR.”5
3. Question:SowhydoeslawenforcementsometimessendasubpoenatoreleaseSAR documentation?
Answer: Law enforcement will send a subpoena when they plan to take the information tied to a SAR to court. They cannot reveal the existence of a SAR, but they can take the information and supporting documentation to court to prosecute criminals.
Writing effective SARs
The next key to working effectively with law enforcement is to write SARs that effectively and succinctly describe the suspicious activity. Begin by accurately and consistently filling in all the fields above the narrative portion of the SAR. The types of criminal activity listed here should be the same activity that is explained in the narrative. FinCEN advises the following:
“The narrative section of the report is critical to understanding the nature and circum- stances of the suspicious activity. The care with which the narrative is completed may determine whether the described activity and its possible criminal nature are clearly understood by investigators. Filers must provide a clear, complete, and concise description of the activity, including what was unusual or irregular that caused suspicion. This description should encompass the data provided in Parts I through III but should include any other information necessary to explain the nature and circumstances of the suspicious activity. Filers should provide any information the filers believe necessary to better enable investigators to understand the reported suspicious activity.”6
However, law enforcement reports that they frequently receive SARs with narratives that are confusing, inconsistent, poorly written and/or give no clear indication of the dollar amount and the nature of the criminal activity. The following are some insights from law enforcement on what they often see:
• Law enforcement will receive SARs that contain little to no actual narrative or are presented as lengthy run-ons and are compacted with every date and amount transacted during the SAR period.
• Sometimes when law enforcement downloads SAR data, there are no paragraphs or spaces between “sentences.”
• There are many times where they cannot comprehend what the allegation is because it is impossible to decipher where one “sentence” ends, and another begins.
• The insider box will not be appropri- ately checked.
• Amounts and dates of activity are not aggregated.
• There will be numerous incorrect dates and no correlating dates (both in narrative and date prepared).
• The dollar amount in Part II of the form does not reconcile with the dollar amount described in the narrative.
• There will be inaccurate classifi- cation and description of the suspicious activity throughout the SAR.
• SAR narratives will often be too brief or confusing, making further analysis by law enforcement difficult.
• All appropriate fields will not be completed, and prohibited words will be used in places other than the narrative.
SAR writing tips
So how can one write effective SARs and not waste law enforcement’s time when completing those reports? The following are some simple steps to take.
20 [ JUNE-AUGUST 2021 ]