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The Financial Crimes Enforcement Network is issuing this advisory to U.S. financial institutions so that they may guard against threats of illicit Iranian activity related to money laundering, terrorist financing and weapons of mass destruction proliferation financing. The Financial Action Task Force (FATF) has recently determined that Iran’s lack of a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability within the international financial system.
The Financial Crimes Enforcement Network ("FinCEN") has noticed common errors in the filing of Suspicious Activity Reports ("SARs"). Although these errors were noted primarily through studying Suspicious Activity Reports by Money Services Business (Form 109) filings, we believe that publishing an explanation of ten of the most common errors and ways much of them readily can be mitigated could be informative to financial institutions in other industries in their efforts
The MSB Registration List, which is updated and posted on a monthly basis, contains entities that have registered as Money Services Businesses (MSBs) pursuant to the Financial Crimes Enforcement Network’s (FinCEN’s) Bank Secrecy Act regulations at 31 CFR 103.41. In accordance with FinCEN Guidance (FIN-2006-G006) on Registration and De-Registration of Money Services Businesses
p>James H. Freis, Jr., Director of the Financial Crimes Enforcement Network (FinCEN), today issued the following statement about the federal financial regulatory agencies’ Interagency Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements. “Today’s statement by the agencies is another positive step with respect to clarity and consistency in the implementation of the Bank Secrecy Act. It complements our joint efforts to make the BSA regulatory framework even more efficient for the regulated industries and still more effective for analytical and law enforcement purposes. We share a commitment to initiatives of this kind, as outlined by Secretary Paulson last month.”
The Financial Crimes Enforcement Network (FinCEN) has created a new page on its public website entitled Regulatory Efficiency and Effectiveness Initiative with the purpose of providing information to the public, on a regular basis, about its work to administer and implement a Bank Secrecy Act regulatory environment that is both efficient for the regulated industries and effective for law enforcement, analytical, and regulatory purposes.
The Financial Crimes Enforcement Network (FinCEN) has issued guidance to financial institutions to address law enforcement agency requests to keep open particular accounts.
The Financial Crimes Enforcement Network (FinCEN) has issued guidance reminding financial institutions to provide all documentation supporting the filing of a Suspicious Activity Report (SAR) upon request by FinCEN, appropriate law enforcement or a supervisory agency.
The Financial Crimes Enforcement Network issued today the latest edition of the SAR Activity Review – By The Numbers that introduces a number of visual enhancements aimed at providing financial institutions with more information on the geographical dispersion of the Suspicious Activity Report filings.
The Financial Crimes Enforcement Network (FinCEN) has announced delayed implementation of the revised Suspicious Activity Report by Depository Institutions (SAR-DI) form. The revised form was scheduled to take effect on June 30, 2007, and become mandatory on December 31, 2007.
The Financial Crimes Enforcement Network (FinCEN) has updated two Bank Secrecy Act guidance. Financial institutions are recommended to read these guidance for the latest information on maintaining accounts and Suspicious Activity Report (SAR) supporting documentation.
The Financial Crimes Enforcement Network (FinCEN) has issued the eleventh edition (May 2007) of The SAR Activity Review - Trends, Tips & Issues.
On December 21, 2006, the Financial Crimes Enforcement Network (FinCEN) and the federal banking agencies announced that the format for the Suspicious Activity Report by Depository Institutions (SAR-DI) was revised. The revisions are the result of their continuing efforts to reduce paperwork and respondent burden. The form was revised and reformatted to standardize suspicious activity reports, enhance the clarity of instructions, allow for joint filing of Suspicious Activity Reports, and to improve the usefulness of the Suspicious Activity Report to law enforcement.
James. H. Freis, Jr., Director of the Financial Crimes Enforcement Network, hosted the 27th plenary of the Bank Secrecy Act Advisory Group (BSAAG) on Wednesday. At the meeting, his first since becoming FinCEN’s Director in April, Director Freis pledged to work closely with all BSAAG members to ensure that the Bank Secrecy Act (BSA) is being administered in the most effective and efficient way. The BSAAG is comprised of high-level representatives from financial institutions, federal law enforcement agencies, regulatory authorities, and others from the private and public sectors. "The Bank Secrecy Act Advisory Group is a model of public-private sector partnership in which its participants can engage in open dialogue about the issues facing them related to the protection of the U.S. financial system from money laundering, terrorist financing, and other abuse," said Director Freis. "The plenary gathering is extremely important
FinCEN has issued a SAR Activity Review report for financial institutions to use. Click to read the SAR Activity Review: Trends, Tips and Issues Update.
United States Department of the Treasury Financial Crimes Enforcement Network FinCEN Advisory
Subject:Transactions Involving Nigeria
This Advisory is being issued to inform banks and other financial institutions operating in the United States that Financial Crimes Enforcement Network (FinCEN) Advisory Issue 32, regarding the Federal Republic of Nigeria, is hereby withdrawn.
Since the issuance of Advisory 32, and as reflected in its June 23, 2006 decision, the Financial Action Task Force on Money Laundering has removed Nigeria from its list of countries that are non-cooperative in the fight against money laundering, recognizing the progress Nigeria has made in implementing anti-money laundering reforms. Nigeria has enacted significant reforms to its counter-money laundering system, addressing the deficiencies listed in Advisory 32, and has taken concrete steps to bring these reforms into effect. Because of the enactment of new laws and the beginning of effective implementation, the enhanced scrutiny called for in Advisory 32 with respect to transactions invol
The Financial Crimes Enforcement Network (FinCEN) today filed a Federal Register notice announcing the delayed implementation of certain revised Suspicious Activity Report (SAR) forms that were scheduled to become effective on June 30, 2007. The agency is withdrawing this effective date for the revised SAR forms for depository institutions, casinos and card clubs, insurance companies, and the securities and futures industries. FinCEN will establish new effective and mandatory compliance dates for these revised forms in a future notice. The delay does not impact ongoing suspicious activity reporting, which will continue using the current forms.
The Financial Crimes Enforcement Network (FinCEN) and the federal banking agencies announced Thursday that the format for the Suspicious Activity Report by Depository Institutions (SAR-DI) has been revised to support a new joint filing initiative, which will reduce the number of duplicate SARs filed for a single suspicious transaction. The revisions are the result of a joint effort by FinCEN and the federal banking agencies.
On December 21, 2006, the Financial Crimes Enforcement Network (FinCEN) and the federal banking agencies announced that the format for the Suspicious Activity Report by Depository Institutions (SAR-DI) was revised. The revisions are the result of their continuing efforts to reduce paperwork and respondent burden. The form was revised and reformatted to standardize suspicious activity reports, enhance the clarity of instructions, allow for joint filing of Suspicious Activity Reports, and to improve the usefulness of the Suspicious Activity Report to law enforcement.
The Financial Crimes Enforcement Network (FinCEN) has issued the seventh edition (November 2006) of The SAR Activity Review By the Numbers. Highlights: - FinCEN has issued the seventh edition of The SAR Activity Review By the Numbers. The report is a compilation of numerical data gathered from Suspicious Activity Reports (SARs) filed by depository institutions, certain money services businesses, casinos and card clubs, and by certain segments of the securities and futures industries.
The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has prepared an assessment of mortgage loan fraud, which it based on its analysis of Suspicious Activity Reports (SARs). Financial institutions offering mortgage loan products may find the assessment useful. The assessment, entitled "Mortgage Loan Fraud," is available on FinCEN's Web site at http://www.fincen.gov/mortage_fraud.html.
The National Credit Union Administration and the Financial Crimes Enforcement Network today announced that they will jointly host a seminar over the web "BSA: A Year in Review and Setting the Table for 2007." The seminar, known as a webinar, will take place on Tuesday, February 6, 2007 and will be co-hosted by JoAnn Johnson, Chairman of the National Credit Union Administration (NCUA), and Jamal El-Hindi, Associate Director of the Regulatory Policy and Programs Division at the Financial Crimes Enforcement Network (FinCEN).
Welcome to the seventh issue of The SAR Activity Review – By the Numbers, a compilation of numerical data gathered from Suspicious Activity Reports filed by depository institutions since April 1996, by certain money services businesses since January 2002, by casinos and card clubs since August 1996, and by certain segments of the securities and futures industries since January 2003. By the Numbers serves as a companion piece to The SAR Activity Review - Trends, Tips & Issues, which provides information about the preparation, use, and utility of Suspicious Activity Reports.
The tenth (May 2006) issue of The SAR Activity Review – Trends, Tips, & Issues, published by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), is now available. Highlights: - On May 31, 2006, FinCEN released the tenth edition of The SAR Activity Review – Trends, Tips & Issues. This issue focuses on the money services business (MSB) industry. - Article topics include the use of Suspicious Activity Reports (SARs) to detect unregistered MSBs and guidance on registration and deregistration of a business as an MSB. - This issue also identifies current trends in mortgage loan fraud, as well as filing activity and detection of unlicensed/unregistered MSBs.
Summary: The Financial Crimes Enforcement Network (FinCEN) has issued the attached final rule extending, in part, the applicability dates for implementing the international correspondent banking provisions and the private banking provisions of Section 312 of the USA PATRIOT Act. Highlights: On January 4, 2006, FinCEN issued a final regulation implementing Section 312 of the USA PATRIOT Act. The final rule took effect on February 3, 2006, and superseded the interim final rule issued on July 23, 2002. The final rule requires U.S. financial institutions to apply due diligence to correspondent accounts maintained for certain foreign financial institutions and private banking accounts maintained for foreign individuals. Regarding correspondent banking, generally, the rule establishes the scope of U.S. financial institutions to which the rule applies and outlines general due diligence requirements to mitigate exposure to potential money-laundering activities.
Summary: We are issuing this advance notice of proposed rulemaking ("Advance Notice") as part of our ongoing effort to address, in the context of the Bank Secrecy Act, the issue of access to banking services by money services businesses. Both the banking industry and the money services business industry have expressed concerns with regard to the impact of Bank Secrecy Act regulations on the ability of money services businesses to open and maintain accounts and obtain other banking services at banks and other depository institutions. Due to the concerns about the effect of regulatory requirements on the provision of banking services to money services businesses, we, through the Non-bank Financial Institutions and the Examinations subcommittees of the Bank Secrecy Act Advisory Group, held a fact-finding meeting on March 8, 2005, to hear directly from banks, other depository institutions, and money services businesses concerning the challenges that they face on this issue.
The Financial Crimes Enforcement Network (FinCEN) today issued an Advance Notice of Proposed Rulemaking seeking comments from both the money services business industry and the banking industry on the issue of money services businesses obtaining appropriate access to banking services. Today's action is part of FinCEN's ongoing efforts to address continued concerns about the ability of money services businesses to open and maintain accounts and obtain other services at banks and depository institutions as well as the caution of the banking industry in dealing with money services businesses. "Money services businesses play an important role in America's economy by providing valuable financial services to many Americans who do not, or cannot yet, take advantage of typical savings or checking accounts," said Robert W. Werner, FinCEN's Director. "It is critical for the health and safety of the U.S. financial system that MSBs obtain and maintain banking services and not be driven underground."
The purpose of the Suspicious Activity Report (SAR) is to report known or suspected violations of law or suspicious activity observed by financial institutions subject to the regulations of the Bank Secrecy Act (BSA). In many instances, SARs have been instrumental in enabling law enforcement to initiate or supplement major money laundering or terrorist financing investigations and other criminal cases. Information provided in SAR forms also presents the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) with a method of identifying emerging trends and patterns associated with financial crimes. The information about those trends and patterns is vital to law enforcement agencies and provides valuable feedback to financial institutions. Financial institutions are required to submit SAR forms that are complete, sufficient and timely filed. Unfortunately, some financial institutions file SAR forms that contain incomplete, incorrect, and/or disorganized narratives, making further analysis difficult, if not impossible. Some SAR forms are submitted with blank narratives. The failure to adequately describe the factors making the transaction or activity suspicious undermines the very purpose of the SAR and lessens its usefulness to law enforcement. Because the SAR narrative serves as the only free text area for summarizing suspicious activity, it is essential that financial institutions’ staff write narratives that are clear, concise, and thorough.
As Director of the Financial Crimes Enforcement Network, this nation’s financial intelligence unit, I am proud that our skilled professionals are at the forefront of this country’s efforts to protect our financial system from abuse by criminals and terrorist financiers. Under authorities granted to us by the Bank Secrecy Act and the USA PATRIOT Act, our role is to prevent and detect terrorist financing, money laundering, and other financial crime. These are times of rapid change in the financial arena. Internet-based financial activity, changing methodologies for money laundering and terrorist financing, and the sheer number and variety of worldwide financial transactions make tracking illicit financial activity increasingly challenging. In the face of these developments, the Financial Crimes Enforcement Network needs to become more sophisticated, agile, and creative in assessing and responding to financial system risks. Approaches that addressed the needs of the past must give way to policies, processes, and analytical techniques that meet present and future realities.
The Financial Crimes Enforcement Network (FinCEN) published the attached final rule and proposed rule in the Federal Register on January 4, 2006. The final rule implements the international correspondent banking provisions and the private banking provisions of section 312 of the USA PATRIOT Act. Simultaneously, FinCEN announced a related notice of proposed rulemaking involving one key provision of section 312 that requires enhanced due diligence for correspondent accounts maintained for certain foreign banks. Section 312 of the USA PATRIOT Act requires U.S. financial institutions to perform due diligence and, in some cases, enhanced due diligence, with regard to correspondent accounts established or maintained for foreign financial institutions and private banking accounts established or maintained for non-U.S. persons. The final rule implements the general due diligence requirements pertaining to foreign financial institutions as well as the due diligence and enhanced scrutiny requirements pertaining to private banking accounts. Specifically included in the requirements is the duty to conduct enhanced scrutiny of any private banking account that is maintained for senior foreign political figures, their immediate family members, or persons widely and publicly known to be close associates of such individuals.
This guidance concerns Bank Secrecy Act requirements under current regulations for the initial registration, and registration renewal, of money services businesses. It also describes policies regarding de-registration and ceasing to be a money services business. Concurrent with the issuance of this guidance, the Financial Crimes Enforcement Network is undertaking a broader review of the regulatory framework for money services businesses. This review likely will result in further changes and additional regulatory guidance being issued, as appropriate. In the meantime, pending review of the registration regulations, the following guidance is offered to provide clarity concerning registration and de-registration of money services businesses.
The Financial Crimes Enforcement Network and the federal banking agencies – the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision – are issuing the attached guidance to notify institutions when a Suspicious Activity Report (SAR) can be shared with a holding company or other controlling company, or with the head office of a U.S. branch or agency of a foreign bank.
WASHINGTON, D.C. (January 13, 2006) – The federal financial regulatory agencies today announced a public service campaign to aid in the financial recovery of victims of last year's hurricanes. Although four months have passed since Hurricanes Katrina and Rita made landfall, some bank customers have not yet been in contact with their lenders. Communication is an essential step in the road to financial recovery. The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the National Credit Union Administration and state financial regulators are encouraging banks, thrifts, and credit unions to continue to work with borrowers affected by the hurricanes. Assistance may include waiving fees, lowering interest rates, extending repayment schedules, or deferring principal or interest for an additional period, where appropriate. For these options to be considered, however, it is essential that the borrower contact his or her lender.
The Financial Crimes Enforcement Network (FinCEN) has announced the final regulation implementing the international correspondent banking provisions and the private banking provisions of Section 312 of the USA PATRIOT Act. Concurrently, FinCEN has released a further notice of proposed rulemaking on one key issue regarding correspondent banking. To view the final and proposed rules, along with a press release and fact sheet from FinCEN, visit FinCEN's Web site at http://www.fincen.gov/section312.pdf.
Highlights: The final regulation takes effect within 90 days from the date the regulation is published in the Federal Register (anticipated by January 4, 2006) for new accounts opened by U.S. financial institutions and 270 days from that date for existing accounts.
The final rule requires certain U.S. financial institutions to apply due diligence to correspondent accounts maintained for certain foreign financial institutions and private banking accounts maintained for foreign individuals.
Agencies Release Bank Secrecy Act/Anti-Money Laundering Examination Manual The Federal Financial Institutions Examination Council (FFIEC) today released the Bank Secrecy Act/Anti-Money Laundering Examination Manual (FFIEC BSA/AML Examination Manual). The manual’s release marks an important step forward in the effort to ensure the consistent application of the BSA to all banking organizations including commercial banks, savings associations, and credit unions. The FFIEC BSA/AML Examination Manual was developed by the Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), and Office of Thrift Supervision (OTS) (collectively referred to as the federal banking agencies) in collaboration with the Financial Crimes Enforcement Network (FinCEN), the delegated administrator of the BSA. In addition, through the Conference of State Bank Supervisors, the state banking agencies played a consultative role. The Office of Foreign Assets Control collaborated on the development of core overview and examination procedures addressing compliance with regulations enforced by OFAC.
Financial Crimes Enforcement Network
Welcome to the fourth issue of The SAR Activity Review – By the Numbers, a compilation of statistical data gathered from Suspicious Activity Report forms submitted by depository institutions since April 1996,casinos and card clubs since August 1996,certain money services businesses since January 2002, and certain segments of the securities and futures industries since January 2003. By the Numbers serves as a companion piece to the publication of the Trends, Tips &Issues, which provides information about the preparation, use, and utility of Suspicious Activity Reports. By the Numbers is produced twice a year to cover two periods:January 1 A review of the statistical data generated for Issue 4 of By the Numbers reveals some interesting facts. As of December 31,2004,over 2.1 million Suspicious Activity Report forms 1 had been ith FinCEN. Although the remainder of this publication provides detailed statistical data on those , some general observations are provided below for each type of form.
The SAR Activity Review - Trends,Tips &Issues
Section 314(a) of the USA PATRIOT Act of 2001 (P.L. 107-56)1 , required the Secretary of the Treasury to adopt regulations to encourage regulatory authorities and law enforcement authorities to share with financial institutions information regarding individuals, entities, and organizations engaged in or reasonably suspected, based on credible evidence, of engaging in terrorist acts or money laundering activities. FinCEN issued a proposed rule on March 5, 2002, and the final rule on September 26, 2002(67 Fed. Reg. 60,579). Section 314(a) requirements are now published in 31 CFR Part 103.100.
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