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[ AML CHALLENGES ]
Step 6
The following is additional information to include in a SAR narrative and attachments:
• Account opening information
• CDD and enhanced due diligence information
• The source of the funds
• Account numbers, date opened/closed/branch where it was
opened
• FIs involved
• Where the activity occurred (i.e., branch address not the
corporate address)
• Related accounts of the customer even if they are not involved
in the suspicious activity――if they are a signer on those
accounts
• Other parties involved that may not be in the subject line but
have some connection to the case
• Did the person have knowledge of bank procedures?
• Did the person receive the currency transaction report
pamphlet? If so, this shows law enforcement that the
customer intended to commit a crime9
• Any conversations with the person(s) involved in the suspi-
cious activity
• Videos that exist that capture the suspicious activity
• An attachment with the specific transactions, dates, days of
the week and times of the activity (a short summary of these transactions would be in the narrative)
Step 7
Beware of the following:
• Using acronyms
• Making it too long or wordy
• Making it confusing
• Using all capital letters
• Including too many details that could be better listed on an
attachment or on the supporting documentation
Conclusion
Remember, according to former FinCEN Director Kenneth Blanco, “The more specific you are in describing the suspicious activity you see in SARs that you submit to FinCEN, the more useful they are for our law enforcement partners, and the easier and faster it will be to get your SARs to the right investigative team.”10
Keep in mind that the work of BSA officers is of great value to law enforcement. Not only can BSA officers benefit law enforcement, but law enforcement can benefit BSA officers as well. Get to know local, state and federal law enforcement agencies and develop relationships with them. They are a valuable resource to understand
the various types of activity seen in FIs. Invite them in for a lunch and learn. Although they cannot get paid as they are unable to accept money or gifts, FIs can provide them lunch and let them teach the institution valuable lessons.
As the public and private sectors partner together, they will be much more effective in stopping financial crime and making the world safer for everyone.
Nancy Lake, CAMS-Audit, CAMS-FCI, director of training, ARC Risk and Compliance and AML-ology, nancy.lake@arcriskandcompliance.com
1 “Warner, Rounds, Jones Applaud Inclusion of Bipartisan Anti-Money Laundering Legislation in NDAA, ” Mark R. Warner, December 3, 2020, https:// www.warner.senate.gov/public/index.cfm/2020/12/ warner-rounds-jones-applaud-inclusion-of-bipartisan-anti-money- laundering-legislation-in-ndaa
2 “Bank Secrecy Act/Anti-Money Laundering Examination Manual April 2020 Update,” Federal Financial Institutions Examination Council, April 2020, https://www.ffiec.gov/press/PDF/FFIEC%20BSA-AML%20Exam%20Manual. pdf
3 “Federal and State Regulators Release Updates to the BSA/AML Examination Manual,” Federal Financial Institutions Examination Council, February 25, 2021, https://www.ffiec.gov/press/pr022521.htm
4 “Field Offices,” FBI, https://www.fbi.gov/contact-us/field-offices
5 “Suspicious Activity Report Supporting Documentation,” Financial Crimes Enforcement Network, June 13, 2007, https://www.fincen.gov/resources/ statutes-regulations/guidance/ suspicious-activity-report-supporting-documentation
6 “FinCEN Suspicious Activity Report (FinCEN SAR) Electronic Filing Instructions,” Financial Crimes Enforcement Network, October 2012, https:// www.fincen.gov/sites/default/files/shared/FinCEN%20SAR%20 ElectronicFilingInstructions-%20Stand%20Alone%20doc.pdf
7 The first three bullets, the introductory paragraph, the background paragraph and the transaction section, are from ACAMS-FCI training as well as law enforcement suggestions.
8 Various ACAMS presentations featuring Lauren A. Kohr, CAMS-FCI, as well as other speakers.
9 “I cannot tell you how many SARs I read wherein it appears that there is structuring activity going on and the FI files SAR after SAR on the activity but not once does the FI speak to the customer AND provide them with the CTR pamphlet―or I am presuming as much because it isn’t mentioned. They simply monitor the activity. And while this may be suspicious in nature, this goes back to knowledge and intent. Once the customer receives that pamphlet, it is hard for them to argue that they didn’t know what they were doing if they so choose to continue the structuring moving forward. So, I don’t know if the policy differs depending on the FI but these FIs need to be speaking to their customers, documenting the conversations, and providing that pamphlet.”–Per an IRS special agent with whom the author works.
10 “Prepared Remarks of FinCEN Director Kenneth A. Blanco, delivered virtually at the American Bankers Association/American Bar Association Financial Crimes Enforcement Conference,” Financial Crimes Enforcement Network, December 10, 2020, https://www.fincen.gov/news/speeches/ prepared-remarks-fincen-director-kenneth-blanco-delivered-virtually- american-bankers
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