what is a bank sar

The Bank Secrecy Act (“BSA”) and its implementing regulations require covered financial institutions to file a SAR when they detect a known. Without the banking community's efforts and continuing support, SARS would not be a reality today. The first 18 months of data indicate that banks have adapted. “Banks should document SAR decisions, including the specific reason for filing or not filing a SAR. Thorough documentation provides a record.

What is a bank sar -

Board of Governors of the Federal Reserve System

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the federal banking agencies) and the U.S Department of the Treasury's Financial Crimes Enforcement Network are issuing the attached Answers to Frequently Asked Questions (FAQs) Regarding Suspicious Activity Reports (SARs) and Other Anti-Money Laundering (AML) Considerations.

Financial institutions, including those supervised by the Federal Reserve1, have a legal obligation to report suspicious activity. SARs are a cornerstone of the Bank Secrecy Act (BSA) reporting system, and are a critical tool for combating financial crimes. The FAQs are intended to provide clarity to industry questions regarding certain SAR filing requirements and compliance processes. The FAQs have been issued as a result of discussions among law enforcement, regulators, and industry representatives through the Bank Secrecy Act Advisory Group. The FAQs do not alter existing BSA/AML legal or regulatory requirements, or establish new supervisory expectations.

Federal Reserve Banks are asked to distribute this letter to the supervised institutions in their districts and to appropriate supervisory staff. In addition, supervised organizations may send questions regarding the FAQs via the Board's public website.2

signed by
Michael Gibson
Director
Division of
Supervision and Regulation

Источник: https://www.federalreserve.gov/supervisionreg/srletters/SR2102.htm

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**We aim to meet the relevant timescales. Unfortunately, however, there may be unavoidable delays as the bank makes provision to deal with the coronavirus pandemic in accordance with Government guidelines.

Please note that since the implementation of GDPR there is no longer any charge for responding to data subject access requests. Please do not send any payment.

Providing your Email address and mobile number when submitting your request will allow us to provide your personal data via encrypted Email, avoiding reliance on postal services that may be impacted during this time. If your preference is still to receive a physical copy via post, then we must make you aware that this may delay receipt of your Subject Access Request.**

A Subject Access Request (SAR) is the right of an individual to request any 'personal data' we hold for them. This right is a principle of the General Data Protection Regulation, designed to regulate the processing of information from which a living individual can be identified or singled out either from the information on its own or when combined with other information.

As part of a SAR, individuals have a right to:

  • a description of the information held about them
  • be informed of the purposes the information is used for
  • be informed of the disclosures that are made or might be made
  • be informed of the source of the information
  • be informed of the envisaged retention period for the data
  • be informed if their data is transferred internationally, who the recipients are, and what the adequacy mechanisms for those transfers are
  • Receive a copy of their personal information.

Examples of Personal Information you can request

The following are examples of personal information (assuming that the information in question can be linked to an identifiable, living individual):

  • Contact details
  • CCTV footage
  • Complaints or customer service notes
  • Customer bank statements or related static data (e.g. the content of application forms)
  • Customer medical history
  • Customer spending preferences
  • Customer work experience history (e.g. we may hold evidence of qualifications referenced in a CV submitted to support a business lending application)
  • Employee salary details
  • Notes of meetings from employee disciplinary/grievance hearings
  • Telephone call recordings

Please note: The bank has a tight regulatory deadline of 30 days to meet so identifying these requests within business as usual processes and is vital in assisting us in meeting this timeframe. You may also request a SAR by contacting the bank by telephone or visiting your local branch.

If you require more information about the Act and their rights, you can contact the Information Commissioner's Office (ICO).

You can submit a SAR via the links below

A Subject Access Request does not provide the following:

Copies of documents - individuals are entitled to their personal information contained in documents, not the documents themselves.

Terms and Conditions, marketing correspondence and product literature, as these are not regarded as personal information.

Partnerships and Limited Company business information, as this is not personal information.

Generating Certificates e.g. Certificate of Good Conduct, Certificate of Debt.

Information in relation to a deceased person, as the Act only applies to a living individual.

Information in relation to another individual, including spouse, business partners, suspected fraudster or a member of staff, as the right is to the individual's personal information, not another person's information.

Telephone banking
Personal customers - 03457 888444 (overseas +44 3457 888444)
Open 7 days a week 8am-8pm (Automated service 24/7).

Business customers - 03457 114477 (overseas +44 3457 114477)
Minicom: 0800 404 6161
Open 24 hours a day.
Calls may be recorded.
Call charge information.

Please have your customer number and PIN ready as this will enable your call to be answered faster and more securely. These are the same details you use to log in to online banking.


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Find your nearest branch using our branch locator (opens in a new window).


 

Can't find an answer to your question?

Источник: https://supportcentre.natwest.com/Searchable/959248392/What-is-a-Subject-Access-Request-SAR.htm

By Leslie Callaway, CRCM, CAFP; Mark Kruhm, CRCM, CAFP; and Rhonda Castaneda, CRCM.

QWho has the authority to make the ultimate determination about whether the bank must file a Suspicious Activity Report? For example, if the business unit believes a SAR is unnecessary, based on its familiarity with the customer, but the Bank Secrecy Act officer believes that one should be filed, who makes the final determination?AThe BSA officer makes the determination. An important aspect of BSA compliance is that the BSA officer must be able to act with authority and independence, a point emphasized in the updated provisions of the FFIEC BSA/AML Examination Manualreleased in April 2020. As stated in that update, the BSA officer must have “the ability to undertake the BSA compliance officer’s role without undue influence from the bank’s business lines.” In the past, there have been examples where a business line overruled the BSA officer in making such decisions that resulted in fines and sanctions against the bank. Thus, in this case, the BSA officer makes the final decision. (Answer provided October 2020.)QDue to an increase in fraud, my bank is revising its loan policy and plans to decline loan requests from non-U.S. citizens, including permanent resident aliens (green card holders) who live and work in our community. Are there any potential Regulation B (Equal Credit Opportunity Act) issues we should consider when making this policy change?APossibly. Although Regulation B permits banks to consider immigration status, the bank must focus its consideration on the bank’s ability to be repaid or to collect on the debt, if necessary. Additionally, some state and federal civil rights laws prohibit discrimination based on alienage (lack of citizenship).

Under Regulation B, creditors may consider citizenship but not national origin. Section 1002.6(b)(7) states that a creditor may consider the applicant’s immigration status or status as a permanent resident and any additional information that may be necessary to ascertain the creditor’s rights and remedies regarding repayment. A permanent resident alien is a lawful resident of the United States who has been granted the right to live and work in the U.S. indefinitely. In contrast, other aliens may lawfully stay in the U.S. on a temporary basis, e.g., persons who hold visas to study or work in the U.S. for a specified time.

Comment two to §1002.6(b)(7) states that denial of credit because the applicant is not a citizen “is not per se discrimination based on national origin.” The commentary further states that a person’s immigration status and ties to the community (such as employment and residence) could have a bearing on a creditor’s ability to obtain repayment. Finally, the commentary is clear that creditors may differentiate between non-citizens: those who are permanent residents that have resided in the U.S. for a long time and those who are in the country temporarily, for example, on a student visa.

Banks should consider that under the regulation, creditors may look at and consider immigration status in determining the applicant’s ability to repay and likelihood of repaying the loan and the creditor’s ability to collect the debt if the applicant were to default. However, if a bank lends only to citizens and declines applications from permanent resident aliens who otherwise meet the bank’s standards of creditworthiness, it should be prepared to explain the reasoning behind its policy. Additionally, lawsuits have been filed (and settled) challenging banks’ policies of lending only to citizens and permanent resident aliens under state and federal civil rights laws that prohibit discrimination on the basis of alienage. (Answer provided October 2020.)

QThe flood rules require that a bank provide the borrower a notice of special flood hazards and availability of federal disaster relief assistance within a “reasonable time” before consummation of the loan when a property is in a designated flood zone requiring flood insurance. What is considered a “reasonable” time by the regulators?AThe agencies noted in the flood insurance compliance exam manuals that 10 days is generally considered a “reasonable” time interval for provision of the notice before consummation. (Answer provided October 2020.)

Answers are provided by ABA Regulatory Policy and Compliance team members Leslie T. Callaway, CRCM, CAFP, senior director, compliance outreach and development; Mark Kruhm, CRCM, CAFP, senior compliance analyst; and Rhonda Castaneda, CRCM, senior compliance analyst. Answers do not provide, nor are they substitutes for, professional legal advice. Answers are current as of the response date at the end of each item.

Bank Secrecy ActFair lendingFlood insuranceSuspicious Activity Reports

Источник: https://bankingjournal.aba.com/2021/01/who-makes-the-final-decision-about-filing-a-sar/

Suspicious Activity Reports (SAR) drafted by financial institutions contain some of the most valuable information available to law enforcement agencies in the fight against financial crime. Yet, the FinCEN Files scandal of 2020 has shown that major banks have consistently failed to write and submit proper reports over the years. What can we learn from their mistakes to be able to compose the perfect SAR?


In 2018, more than 2.100 SARs leaked from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), exposing their weaknesses and insensitivities. Known as the FinCEN Files, the wrongdoing exposed by Buzzfeed News and the International Consortium of Investigative Journalists (ICIJ) demonstrated how an ineffective SAR regime pushed major global financial institutions to facilitate money laundering, drug trafficking, terrorism, and Ponzi schemes.

The way SARs are handled are often riddled with basic errors. Elements such as narrative, keywords, objective, and timing of submission can make a real difference in the quality of the reports. FinCEN Files have highlighted how SARs were often submitted too late, with incomplete information, and for the wrong reasons.

SARs are submitted too late and with incomplete information

Law enforcement agencies and financial intelligence units (FIU) are flooded with poor quality reports, making it burdensome or near impossible to handle them with the attention they deserve. So, what makes a perfect SAR?




What is an SAR and what it is not

Before diving into the technical aspects of how to write a perfect Suspicious Activity Report, one must first understand what an SAR is and what it is not.

What is an SAR

An SAR is a short document drafted by a financial institution to report a suspicious behaviour or transaction by part of a client. If a person is suspected of being implicated in a form of financial crime, the report should briefly explain the identity of the person and a short narrative describing the transaction or the behaviour that is deemed suspicious.



An SAR is not a defensive document used for backside covering, meaning they don’t exist to appease authorities, make your financial institution look good, or to avoid fines. Reporting a suspicious behaviour should be a proactive activity to stop the flow of dark money, not to shield a bank from past mistakes or negligence.



How do you construct a narrative for an SAR?

SARs are read by analysts in national FIUs who must try to understand who your client is and why the transaction he/she performed is suspicious. To avoid the mistake of writing a confusing or incomplete report that has little use, put yourself in the shoes of the reader.

To help you write a better narrative for your STRs, use the 5 W’s:

  • 1

    Who: Incorporate the necessary information on the identity of the person/s that you are reporting on. This includes their name, address, job title, date of birth, and account number. If a pet store employee is dealing in transactions that are beyond their income, or a nineteen-year-old is handling millions of euros, this can help the FIU analyst to quickly pinpoint the suspicious behaviour. For companies, make sure to list the identities of the UBOs.

  • 2

    When: Add the precise date of when the suspicious behaviour occurred. If it happened over a span of time, write out the timeline of events. If the activity involved multiple withdrawals at an ATM, give the precise hours of each withdrawal. This will help the FIU analyst get a better sense of how the suspicious activity evolved.

  • 3

    Where: If applicable, be sure to include the location of where the suspicious action took place such as the address of the branch or of the ATM. A person who lives in one town but goes to another town to withdraw cash or goes to multiple branches to deposit cash can help FIU analysts spot the warning signs of an illegal activity.

  • 4

    What: Detail what happened that made you think that the activity was suspicious. List the various steps of the transaction/s and/or cash withdrawals/deposits. This is where the FIU analyst will truly understand what happened. Be concise but don’t leave out necessary details and make sure to add how the activity was flagged – monitoring tool, lookback, etc.

  • 5

    Why: Explain why you think the behaviour is suspicious. List the reasons: money laundering, tax evasion, funnel account, etc. This will help the FIU analyst in categorising your report. FIUs like FinCEN want you to use keywords to help flag the type of activity you are reporting on. Their list of keywords can be helpful to any financial institutions around the world.






Do's and don'ts of a Suspicious Activity Report

Now that you are aware of what constitutes a good narrative for an STR, let’s look at what makes a Suspicious Activity Report stand out and what doesn’t.



Quality vs quantity

Financial Intelligence Units are swamped with STRs and are unable to sift through them in an efficient manner. Between 2011 and 2017, FinCEN received over 12 million SARs from financial institutions.


SARs are not defensive documents

As mentioned earlier in the article, financial institutions have the tendency to draft SARs as defensive documents against earlier mishaps and disregards. This not only decreases the value and quality of the reports, but it also does not protect banks from legal action. The filing of an SAR does not exonerate a financial institution from responsibility and regulators may continue to act against them in court if deemed necessary.



This defensive mechanism is often associated with excessive reporting. Known as “crying wolf,” SARs are often drafted for any behaviour or transaction that is even slightly suspicious without an actual investigation from the part of the financial institution just to “protect” themselves from regulators and showcase that their AML/CTF regimes are optimal. However, 90% of all STRs have no immediate value with only 10% leading to an investigation by FIUs.

When writing an SAR, aim for quality, not quantity. Before embarking on the actual drafting of the report, make sure to investigate if the transaction is suspicious or not. This can be done by asking for documents related to the transaction or by asking the client’s account manager if the client’s behaviour can be regarded as normal or not. However, this should not be done to instil the fear of reporting.

Quality of SARs


Understanding what an STR is, perfecting narrative, and knowing the right keywords is useless if one does not focus their attention on quality over quantity, and those elements put together are the key to writing the perfect SAR.


Источник: https://pideeco.be/articles/how-to-write-perfect-suspicious-activity-report/

Adding or Changing Banking Details

To protect Taxpayers against fraud, new banking details or banking detail updates will be subject to an account verification process prior to accepting the changes.  Any refunds due will only be processed when the banking details have been verified. Refunds due will only be paid if the banking details have been confirmed as valid.

How do I add or change banking details?

If you need to add or change banking details it can be done:

Please note: Customs and Excise clients should visit their nearest SARS Customs branch for the registering and update of banking detail changes as these changes cannot be performed on eFiling. A completed DA 185 – Application form – Registration and licensing of Customs and Excise Clients – External Form and applicable supporting documents must be submitted at a branch. When requesting banking detail changes via email or by making an appointment at a SARS branch, we will:

Please note: Banking details will not be updated on the SARS systems if requested by:

Who can change banking details?

Only Taxpayers, Registered Representatives or Registered Tax Practitioners are allowed to change banking details.

The Registered Representative’s details must match those on the SARS system. For more information see ‘Single Registration’.

Tax Practitioners may request banking detail changes on behalf of Taxpayers in all instances, including exceptional circumstances. Please note, a Requestor with mandate is only allowed to do the changes in exceptional circumstances. For more details on the exceptional circumstances, you can refer to the Change of Banking Details – External Guide.

Top Tips:

  • The TPPOA form (Special Power of Attorney by Practitioners) hasn’t been updated yet to remove the exclusion of change of banking details. SARS will accept the form until this is updated.
  • The “Authority on Special Power of Attorney by Tax Practitioner” presented to the staff member is NOT acceptable for updating banking details.

SARS will allow a once-off instruction to add or change banking details for an Entity other than the above mentioned group under unique circumstances. See the list of exceptions and the supporting documents (relevant material) needed.

What are valid bank accounts?

A valid bank account is:

  • A cheque, savings or transmission account type
  • With a valid branch number
  • Held at a valid bank 
  • In the name of the Taxpayer(s)
  • Not a credit card, bond or foreign bank account.

Joint Accounts (Shared Accounts)

Where a Taxpayer shares a bank account with his/her spouse, it is no longer necessary for both spouses to visit the SARS branch for verification purposes.  It is only necessary for the spouse requesting the banking detail change to visit the SARS branch.

All the supporting documents (relevant material) must be provided, including a certified copy of the marriage certificate or an affidavit for life partners, whichever one is applicable.  

What is needed to add or change banking details?

For a detailed list of the supporting documents required under each unique circumstance, please click here.

What additional documents will be needed?

The following additional documents may be needed for different scenarios:

(Top Tip: All letters must be in one of the official South African languages. If not, SARS will ask for a translation.)

Источник: https://www.sars.gov.za/individuals/i-need-help-with-my-tax/your-tax-questions-answered/adding-or-changing-banking-details/

: What is a bank sar

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What is a bank sar -

Suspicious Activity Reports (SAR) drafted by financial institutions contain some of the most valuable information available to law enforcement agencies in the fight against financial crime. Yet, the FinCEN Files scandal of 2020 has shown that major banks have consistently failed to write and submit proper reports over the years. What can we learn from their mistakes to be able to compose the perfect SAR?


In 2018, more than 2.100 SARs leaked from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), exposing their weaknesses and insensitivities. Known as the FinCEN Files, the wrongdoing exposed by Buzzfeed News and the International Consortium of Investigative Journalists (ICIJ) demonstrated how an ineffective SAR regime pushed major global financial institutions to facilitate money laundering, drug trafficking, terrorism, and Ponzi schemes.

The way SARs are handled are often riddled with basic errors. Elements such as narrative, keywords, objective, and timing of submission can make a real difference in the quality of the reports. FinCEN Files have highlighted how SARs were often submitted too late, with incomplete information, and for the wrong reasons.

SARs are submitted too late and with incomplete information

Law enforcement agencies and financial intelligence units (FIU) are flooded with poor quality reports, making it burdensome or near impossible to handle them with the attention they deserve. So, what makes a perfect SAR?




What is an SAR and what it is not

Before diving into the technical aspects of how to write a perfect Suspicious Activity Report, one must first understand what an SAR is and what it is not.

What is an SAR

An SAR is a short document drafted by a financial institution to report a suspicious behaviour or transaction by part of a client. If a person is suspected of being implicated in a form of financial crime, the report should briefly explain the identity of the person and a short narrative describing the transaction or the behaviour that is deemed suspicious.



An SAR is not a defensive document used for backside covering, meaning they don’t exist to appease authorities, make your financial institution look good, or to avoid fines. Reporting a suspicious behaviour should be a proactive activity to stop the flow of dark money, not to shield a bank from past mistakes or negligence.



How do you construct a narrative for an SAR?

SARs are read by analysts in national FIUs who must try to understand who your client is and why the transaction he/she performed is suspicious. To avoid the mistake of writing a confusing or incomplete report that has little use, put yourself in the shoes of the reader.

To help you write a better narrative for your STRs, use the 5 W’s:

  • 1

    Who: Incorporate the necessary information on the identity of the person/s that you are reporting on. This includes their name, address, job title, date of birth, and account number. If a pet store employee is dealing in transactions that are beyond their income, or a nineteen-year-old is handling millions of euros, this can help the FIU analyst to quickly pinpoint the suspicious behaviour. For companies, make sure to list the identities of the UBOs.

  • 2

    When: Add the precise date of when the suspicious behaviour occurred. If it happened over a span of time, write out the timeline of events. If the activity involved multiple withdrawals at an ATM, give the precise hours of each withdrawal. This will help the FIU analyst get a better sense of how the suspicious activity evolved.

  • 3

    Where: If applicable, be sure to include the location of where the suspicious action took place such as the address of the branch or of the ATM. A person who lives in one town but goes to another town to withdraw cash or goes to multiple branches to deposit cash can help FIU analysts spot the warning signs of an illegal activity.

  • 4

    What: Detail what happened that made you think that the activity was suspicious. List the various steps of the transaction/s and/or cash withdrawals/deposits. This is where the FIU analyst will truly understand what happened. Be concise but don’t leave out necessary details and make sure to add how the activity was flagged – monitoring tool, lookback, etc.

  • 5

    Why: Explain why you think the behaviour is suspicious. List the reasons: money laundering, tax evasion, funnel account, etc. This will help the FIU analyst in categorising your report. FIUs like FinCEN want you to use keywords to help flag the type of activity you are reporting on. Their list of keywords can be helpful to any financial institutions around the world.






Do's and don'ts of a Suspicious Activity Report

Now that you are aware of what constitutes a good narrative for an STR, let’s look at what makes a Suspicious Activity Report stand out and what doesn’t.



Quality vs quantity

Financial Intelligence Units are swamped with STRs and are unable to sift through them in an efficient manner. Between 2011 and 2017, FinCEN received over 12 million SARs from financial institutions.


SARs are not defensive documents

As mentioned earlier in the article, financial institutions have the tendency to draft SARs as defensive documents against earlier mishaps and disregards. This not only decreases the value and quality of the reports, but it also does not protect banks from legal action. The filing of an SAR does not exonerate a financial institution from responsibility and regulators may continue to act against them in court if deemed necessary.



This defensive mechanism is often associated with excessive reporting. Known as “crying wolf,” SARs are often drafted for any behaviour or transaction that is even slightly suspicious without an actual investigation from the part of the financial institution just to “protect” themselves from regulators and showcase that their AML/CTF regimes are optimal. However, 90% of all STRs have no immediate value with only 10% leading to an investigation by FIUs.

When writing an SAR, aim for quality, not quantity. Before embarking on the actual drafting of the report, make sure to investigate if the transaction is suspicious or not. This can be done by asking for documents related to the transaction or by asking the client’s account manager if the client’s behaviour can be regarded as normal or not. However, this should not be done to instil the fear of reporting.

Quality of SARs


Understanding what an STR is, perfecting narrative, and knowing the right keywords is useless if one does not focus their attention on quality over quantity, and those elements put together are the key to writing the perfect SAR.


Источник: https://pideeco.be/articles/how-to-write-perfect-suspicious-activity-report/

By Leslie Callaway, CRCM, CAFP; Mark Kruhm, CRCM, CAFP; and Rhonda Castaneda, CRCM.

QWho has the authority to make the ultimate determination about whether the bank must file a Suspicious Activity Report? For example, if the business unit believes a SAR is unnecessary, based on its familiarity with the customer, but the Bank Secrecy Act officer believes that one should be filed, who makes the final determination?AThe BSA officer makes the determination. An important aspect of BSA compliance is that the BSA officer must be able to act with authority and independence, a point emphasized in the updated provisions of the FFIEC BSA/AML Examination Manualreleased in April 2020. As stated in that update, the BSA officer must have “the ability to undertake the BSA compliance officer’s role without undue influence from the bank’s business lines.” In the past, there have been examples where a business line overruled the BSA officer in making such decisions that resulted in fines and sanctions against the bank. Thus, in this case, the BSA officer makes the final decision. (Answer provided October 2020.)QDue to an increase in fraud, my bank is revising its loan policy and plans to decline loan requests from non-U.S. citizens, including permanent resident aliens (green card holders) who live and work in our community. Are there any potential Regulation B (Equal Credit Opportunity Act) issues we should consider when making this policy change?APossibly. Although Regulation B permits banks to consider immigration status, the bank must focus its consideration on the bank’s ability to be repaid or to collect on the debt, if necessary. Additionally, some state and federal civil rights laws prohibit discrimination based on alienage (lack of citizenship).

Under Regulation B, creditors may consider citizenship but not national origin. Section 1002.6(b)(7) states that a creditor may consider the applicant’s immigration status or status as a permanent resident and any additional information that may be necessary to ascertain the creditor’s rights and remedies regarding repayment. A permanent resident alien is a lawful resident of the United States who has been granted the right to live and work in the U.S. indefinitely. In contrast, other aliens may lawfully stay in the U.S. on a temporary basis, e.g., persons who hold visas to study or work in the U.S. for a specified time.

Comment two to §1002.6(b)(7) states that denial of credit because the applicant is not a citizen “is not per se discrimination based on national origin.” The commentary further states that a person’s immigration status and ties to the community (such as employment and residence) could have a bearing on a creditor’s ability to obtain repayment. Finally, the commentary is clear that creditors may differentiate between non-citizens: those who are permanent residents that have resided in the U.S. for a long time and those who are in the country temporarily, for example, on a student visa.

Banks should consider that under the regulation, creditors may look at and consider immigration status in determining the applicant’s ability to repay and likelihood of repaying the loan and the creditor’s ability to collect the debt if the applicant were to default. However, if a bank lends only to citizens and declines applications from permanent resident aliens who otherwise meet the bank’s standards of creditworthiness, it should be prepared to explain the reasoning behind its policy. Additionally, lawsuits have been filed (and settled) challenging banks’ policies of lending only to citizens and permanent resident aliens under state and federal civil rights laws that prohibit discrimination on the basis of alienage. (Answer provided October 2020.)

QThe flood rules require that a bank provide the borrower a notice of special flood hazards and availability of federal disaster relief assistance within a “reasonable time” before consummation of the loan when a property is in a designated flood zone requiring flood insurance. What is considered a “reasonable” time by the regulators?AThe agencies noted in the flood insurance compliance exam manuals that 10 days is generally considered a “reasonable” time interval for provision of the notice before consummation. (Answer provided October 2020.)

Answers are provided by ABA Regulatory Policy and Compliance team members Leslie T. Callaway, CRCM, CAFP, senior director, compliance outreach and development; Mark Kruhm, CRCM, CAFP, senior compliance analyst; and Rhonda Castaneda, CRCM, senior compliance analyst. Answers do not provide, nor are they substitutes for, professional legal advice. Answers are current as of the response date at the end of each item.

Bank Secrecy ActFair lendingFlood insuranceSuspicious Activity Reports

Источник: https://bankingjournal.aba.com/2021/01/who-makes-the-final-decision-about-filing-a-sar/

Suspicious Activity Report (SAR)

What Is The Suspicious Activity Report?

Suspicious Activity Report (SAR)is a tool to track suspicious activities that would not be normally stated in other reports. For example, when money laundering or fraud is suspected, financial institutions and those associated with their business should apply to the Financial Crimes Enforcement Network (FinCEN). These SARs are required under the Bank Secrecy Act(BSA) of 1970. SARs alert law enforcement agencies to potential cases such as money laundering or terrorist financing. SARs are an important source of intelligence not only in economic crime but also in criminal activities. The overall purpose of SAR is to identify illegal activities such as money laundering and terrorist financing, tax evasion, and other financial fraud.

Although the report varies from country to country, it is often necessary to monitor any activity that could threaten public security. However, there is a suspicion that the account holder is trying to hide something or take illegal action. The Suspicious Activity Report is usually sent to the country's financial crime enforcement agency to collect and analyze transactions and then report them to the relevant law enforcement agencies. SAR file must be submitted no later than 30 calendar days from the date of the first identification of facts that may serve as the basis for filing.

Suspicious Activity Report for Transaction Monitoring

Transaction Monitoring also has an important place for Suspicious Activity Report. Transaction Monitoring responds to companies' AML (Anti-Money Laundering), CFT (Counter-Financing of Terrorism), and KYC (Know Your Customer) requirements. Transaction monitoring generates an alarm for suspicious situations. When the software issues an alarm, the transaction is automatically stopped, and the transaction is reviewed in detail by the Firm's Compliance or Risk Department. At this point, if the SAR comes into play and detects crime in the customer transaction, the suspicious transactions report to the AML, CFT, and KYC regulators.

Suspicious Activity Report Process

Suspicious Activity Reports are a tool provided by the BSA of 1970. SARs allow governments to identify and analyze trends and patterns that arise in a wide range of personal and organized crime. With this information, they can predict and resist fraudulent and criminal behavior before gaining a place. Even though most SARs come from the financial sector, institutions such as law enforcement, public safety workers, and business owners also submit a SAR. Federal law requires that a financial institution and its managers, officers, employees, and agents reporting suspicious or known criminal violations or suspicious activities not report to any person reporting the transaction.

The following information sections are required to submit a SAR file:

  • Information such as the names, passport numbers, birth dates, addresses, social security numbers, and phone numbers of all parties related to the suspicious event is collected.
  • Dates of suspicious events that took place and documentation of suspicious activity codes are required.
  • Contact information is required for the financial institution and the institution where the suspicious event took place.
  • A written description of the suspicious event is developed.

Regulators of the Suspicious Activity Report

A suspicious Activity Report (SAR) is made by the financial institution that observes suspicious activity in an account. The report is sent to The Financial Crimes Enforcement Network (FinCEN), investigating the incident. The financial institution can report within 30 days of any account activity they deem suspicious or unusual, and a 60-day extension can be obtained to gather more evidence as needed. Financial institutions should keep a copy of SAR for five years. Failure to comply with any of these regulations may result in civil and criminal penalties, including significant fines, legal restrictions, loss of banking contracts, and even prison terms. Total monetary settlements collected by regulatory agencies and law enforcement agencies for money laundering, sanctions, and tax evasion exceeded $ 13.4 billion for 2014.

Confidentiality of Suspicious Activity Reports

The Suspicious Activity Report's effectiveness depends on these reports' extreme confidentiality because it contains customers' confidential personal information and potentially has significant legal consequences. The person under investigation is never informed about the pending report. Similarly, discussions with third parties like media companies are a federal crime. When a bank or financial institution submits a SAR file, the information provided is reviewed by financial researchers, management staff, and lawyers before concluding the SAR. As a result. Special privileges are given to protect those who submit SARs as part of a company or alone; for example, people who submit SARs do not need to disclose the name of their name or organization.

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Источник: https://sanctionscanner.com/knowledge-base/suspicious-activity-report-sar-149

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**We aim to meet the relevant timescales. Unfortunately, however, there may be unavoidable delays as the bank makes provision to deal with the coronavirus pandemic in accordance with Government guidelines.

Please note that since the implementation of GDPR there is no longer any charge for responding to data subject access requests. Please do not send any payment.

Providing your Email address and mobile number when submitting your request will allow us to provide your personal data via encrypted Email, avoiding reliance on postal services that may be impacted during this time. If your preference is still to receive a physical copy via post, then we must make you aware that this may delay receipt of your Subject Access Request.**

A Subject Access Request (SAR) is the right of an individual to request any 'personal data' we hold for them. This right is a principle of the General Data Protection Regulation, designed to regulate the processing of information from which a living individual can be identified or singled out either from the information on its own or when combined with other information.

As part of a SAR, individuals have a right to:

  • a description of the information held about them
  • be informed of the purposes the information is used for
  • be informed of the disclosures that are made or might be made
  • be informed of the source of the information
  • be informed of the envisaged retention period for the data
  • be informed if their data is transferred internationally, who the recipients are, and what the adequacy mechanisms for those transfers are
  • Receive a copy of their personal information.

Examples of Personal Information you can request

The following are examples of personal information (assuming that the information in question can be linked to an identifiable, living individual):

  • Contact details
  • CCTV footage
  • Complaints or customer service notes
  • Customer bank statements or related static data (e.g. the content of application forms)
  • Customer medical history
  • Customer spending preferences
  • Customer work experience history (e.g. we may hold evidence of qualifications referenced in a CV submitted to support a business lending application)
  • Employee salary details
  • Notes of meetings from employee disciplinary/grievance hearings
  • Telephone call recordings

Please note: The bank has a tight regulatory deadline of 30 days to meet so identifying these requests within business as usual processes and is vital in assisting us in meeting this timeframe. You may also request a SAR by contacting the bank by telephone or visiting your local branch.

If you require more information about the Act and their rights, you can contact the Information Commissioner's Office (ICO).

You can submit a SAR via the links below

A Subject Access Request does not provide the following:

Copies of documents - individuals are entitled to their personal information contained in documents, not the documents themselves.

Terms and Conditions, marketing correspondence and product literature, as these are not regarded as personal information.

Partnerships and Limited Company business information, as this is not personal information.

Generating Certificates e.g. Certificate of Good Conduct, Certificate of Debt.

Information in relation to a deceased person, as the Act only applies to a living individual.

Information in relation to another individual, including spouse, business partners, suspected fraudster or a member of staff, as the right is to the individual's personal information, not another person's information.

Telephone banking
Personal customers - 03457 888444 (overseas +44 3457 888444)
Open 7 days a week 8am-8pm (Automated service 24/7).

Business customers - 03457 114477 (overseas +44 3457 114477)
Minicom: 0800 404 6161
Open 24 hours a day.
Calls may be recorded.
Call charge information.

Please have your customer number and PIN ready as this will enable your call to be answered faster and more securely. These are the same details you use to log in to online banking.


NatWest branch locator
Find your nearest branch using our branch locator (opens in a new window).


 

Can't find an answer to your question?

Источник: https://supportcentre.natwest.com/Searchable/959248392/What-is-a-Subject-Access-Request-SAR.htm

FinCEN Files: HSBC moved Ponzi scheme millions despite warning

By FinCEN Files reporting team
BBC Panorama

HSBC allowed fraudsters to transfer millions of dollars around the world even after it had learned of their scam, leaked secret files show.

Britain's biggest bank moved the money through its US business to HSBC accounts in Hong Kong in 2013 and 2014.

Its role in the $80m (£62m) fraud is detailed in a leak of documents - banks' "suspicious activity reports" - that have been called the FinCEN Files.

HSBC says it has always met its legal duties on reporting such activity.

The files show the investment scam started soon after the bank was fined $1.9bn (£1.4bn) in the US over money laundering. It had promised to clamp down on these sorts of practices.

The scam was a Ponzi scheme - a notorious type of investment racket that pays existing stakeholders with money collected from new members.

Lawyers for duped investors say the bank should have acted sooner to close the fraudsters' accounts.

The documents leak includes a series of other revelations - such as the suggestion one of the biggest banks in the US may have helped a notorious mobster to move more than $1bn.

What are the FinCEN Files?

The FinCEN Files are a leak of 2,657 documents, at the heart of which are 2,100 suspicious activity reports, or SARs.

SARs are not evidence of wrongdoing - banks send them to the authorities if they suspect customers could be up to no good.

By law, they have to know who their clients are - it's not enough to file SARs and keep taking dirty money from clients while expecting enforcers to deal with the problem. If they have evidence of criminal activity, they should stop moving the cash.

The leak shows how money was laundered through some of the world's biggest banks and how criminals used anonymous British companies to hide their money.

The SARs were leaked to the Buzzfeed website and shared with the International Consortium of Investigative Journalists (ICIJ). Panorama led the research for the BBC as part of a global probe.

The ICIJ led the reporting of the Panama Papers and Paradise Papers leaks - secret files detailing the offshore activities of the wealthy and the famous.

Fergus Shiel, from the consortium, said the FinCEN Files are an "insight into what banks know about the vast flows of dirty money across the globe… [The] system that is meant to regulate the flows of tainted money is broken".

The leaked SARs had been submitted to the US Financial Crimes Enforcement Network, or FinCEN between 2000 and 2017 and cover transactions worth about $2 trillion.

FinCEN said the leak could impact US national security, risk investigations, and threaten the safety of those who file the reports.

But last week it announced proposals to overhaul its anti-money laundering programmes.

The UK also unveiled plans to reform its register of company information to clamp down on fraud and money laundering.

The investment scam that HSBC was warned about was called WCM777.

It was started by Chinese national Ming Xu. Little is known about how he came to be living in the US, although he claims to have studied for an MA in California.

Based in the Los Angeles area, Xu - or "Dr Phil" as he styled himself - acted as a pastor at evangelical churches.

Xu said he was operating a global investment bank, World Capital Market, that would pay out 100% profit in a 100 days. In reality, he was running the WCM777 Ponzi scheme.

Through travelling seminars, Facebook and webinars on YouTube, it raised $80m selling supposed investment opportunities in cloud computing.

Thousands of people from the East Asian and Latino communities were taken in. The fraudsters used Christian imagery and targeted poor communities in the US, Colombia and Peru. There were also victims in other countries, including the UK.

But the impact were not just financial. The scheme led to the death of investor Reynaldo Pacheco, who was found under water on a wine estate in Napa, California, in April 2014. Police say he had been bludgeoned with rocks.

He signed up to the scheme and was expected to recruit other investors. The promise was everyone would get rich.

A woman Mr Pacheco, 44, introduced lost about $3,000. That led to the killing by men hired to kidnap him.

"He literally was trying to… make people's lives better, and he himself was scammed, and conned, and he unfortunately paid for it with his life," said Sgt Chris Pacheco (no relation), one of the officers who investigated the killing.

Reynaldo, he said, "was murdered for being a victim in a Ponzi scheme".

By then, regulators in California had already told HSBC it was investigating WCM777. This happened in September 2013. It also alerted its residents to the fraud.

And California, along with Colorado and Massachusetts, took action against WCM for selling unregistered investments.

HSBC did spot suspicious transactions going through its systems. But it was not until April 2014, after US financial regulator the Securities and Exchange Commission filed charges, that the WCM777 accounts at HSBC in Hong Kong were shut.

By that time there was nearly nothing left in them.

What do the suspicious activity reports show?

HSBC filed its first SAR about the scam on 29 October 2013 relating to more than $6m sent to the fraudsters' accounts in Hong Kong.

Bank officials said there was "no apparent economic, business, or lawful purpose" for the transactions - and noted allegations of "Ponzi scheme activities".

A second SAR in February 2014 identified $15.4m in suspicious transactions, and a "Potential Ponzi scheme".

A third report in March related to a company associated with WCM777 and nearly $9.2m, and noted the regulatory moves by US states and an investigation ordered by Colombia's president.

The WCM777 scheme emerged months after HSBC avoided a US criminal prosecution over money laundering by Mexican drug barons. It did so by agreeing to improve procedures.

Analysis by the ICIJ shows that between 2011 and 2017 HSBC identified suspicious transactions moving through accounts in Hong Kong of more than $1.5bn - about $900m linked to overall criminal activity.

But the reports failed to include key facts about customers, including the ultimate beneficial owners of accounts and where the money came from.

Banks are not allowed to talk about suspicious activity reports.

HSBC said: "Starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions… HSBC is a much safer institution than it was in 2012."

The bank added the US authorities had determined that it "met all of its obligations under the [agreement struck with US prosecutors]".

Xu was eventually arrested by the Chinese authorities in 2017 and jailed for three years over the scam.

Speaking to the ICIJ from China, Xu said HSBC had not contacted him about his business. He denied WCM777 was a Ponzi scheme, saying it was wrongly targeted by the SEC and his aim had been to build a religious community in California on more than 400 acres of land.

A Ponzi scheme - named after early 20th Century conman Charles Ponzi - does not generate profits from the cash it raises. Instead investors are paid a return from money coming in from other new investors.

More and more investors are needed to cover these payments. Meanwhile, the owners of the scheme move money into their own accounts.

A Ponzi scheme will collapse if it cannot find enough new investors.

What else did the leak find?

The FinCEN Files also show how multinational bank JP Morgan may have helped a man known as the Russian mafia's boss of bosses to move more than a $1bn through the financial system.

Semion Mogilevich has been accused of crimes including gun running, drug trafficking and murder.

Banks have measures in place to stop profits from crime going through the financial system but a SAR filed by JP Morgan in 2015 after the account was closed, reveals how its London office may have moved some of the cash.

It details how JP Morgan, provided banking services to a secretive offshore company called ABSI Enterprises between 2002 and 2013, even though the firm's ownership was not clear from the bank's records.

Over one five-year period, JP Morgan sent and received wire transfers totalling $1.02bn, the bank said.

The SAR noted ABSI's parent company "might be associated with Semion Mogilevich - an individual who was on the FBI's top 10 most wanted list".

In a statement, JP Morgan said: "We follow all laws and regulations in support of the government's work to combat financial crimes. We devote thousands of people and hundreds of millions of dollars to this important work."

The FinCEN Files is a leak of secret documents which reveal how major banks have allowed criminals to move dirty money around the world. They also show how the UK is often the weak link in the financial system and how London is awash with Russian cash.

The files were obtained by BuzzFeed News which shared them with the International Consortium of Investigative Journalists (ICIJ) and 400 journalists around the world. Panorama has led research for the BBC.

FinCEN Files: full coverage; follow reaction on Twitter using #FinCENFiles; in the BBC News app, follow the tag "FinCEN Files; Watch Panorama on the BBC iPlayer (UK viewers only).

More on this story

Источник: https://www.bbc.com/news/uk-54225572

Adding or Changing Banking Details

To protect Taxpayers against fraud, new banking details or banking detail updates will be subject to an account verification process prior to accepting the changes.  Any refunds due will only be processed when the banking details have been verified. Refunds due will only be paid if the banking details have been confirmed as valid.

How do I add or what is a bank sar banking details?

If you need to add or change banking details it can be done:

Please note: Customs and Excise clients should visit their nearest SARS Customs branch for the registering and update of banking detail changes as these changes cannot be performed on eFiling. A completed DA 185 – Application form – Registration and licensing of Customs and Excise Clients – External Form and applicable supporting documents must be submitted at a branch. When requesting banking detail changes via email or by making an appointment at a SARS branch, we will:

Please note: Banking details will not be updated on the SARS systems if requested by:

Who can change banking details?

Only Taxpayers, Registered Representatives or Registered Tax Practitioners are allowed to change banking details.

The Registered Representative’s details must match those on the SARS system. For more information see ‘Single Registration’.

Tax Practitioners may request banking detail changes on behalf of Taxpayers in all instances, including exceptional circumstances. Please note, a Requestor with mandate is only allowed to do the changes in exceptional circumstances. For more details on the exceptional circumstances, you can refer to the Change of Banking Details – External Guide.

Top Tips:

  • The TPPOA form (Special Power of Attorney by Practitioners) hasn’t been updated yet to remove the exclusion of change of banking details. SARS will accept the form until this is updated.
  • The “Authority on Special Power of Attorney by Tax Practitioner” presented to the staff member is NOT acceptable for updating banking details.

SARS will allow a once-off instruction to add or change banking details for an Entity other than the above mentioned group under unique circumstances. See the list of exceptions and the supporting documents (relevant material) needed.

What are valid bank accounts?

A valid bank account is:

  • A cheque, savings or transmission account type
  • With a valid branch number
  • Held at a valid bank 
  • In the name of the Taxpayer(s)
  • Not a credit card, bond or foreign bank account.

Joint Accounts (Shared Accounts)

Where a Taxpayer shares a bank account with his/her spouse, it is no longer necessary for both spouses to visit the SARS branch for verification purposes.  It is only necessary for the spouse requesting the banking detail change to visit the SARS branch.

All the supporting documents (relevant material) must be provided, including a certified copy of the marriage certificate or an affidavit for life partners, whichever one is applicable.  

What is needed to add or change banking details?

For a detailed list of the supporting documents required under each unique circumstance, please click here.

What additional documents will be needed?

The following additional documents may be needed for different scenarios:

(Top Tip: All letters must be in one of the official South African languages. If not, SARS will ask for a translation.)

Источник: https://www.sars.gov.za/individuals/i-need-help-with-my-tax/your-tax-questions-answered/adding-or-changing-banking-details/

Should Banks Continue To Do Business With Entities for Which a Medical clinic of north texas arlington Is Filed?

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Источник: https://www.law.com/dailybusinessreview/2020/12/15/should-banks-continue-to-do-business-with-entities-for-which-a-sar-is-filed/

FinCEN Files: HSBC moved Ponzi scheme millions despite warning

By FinCEN Files reporting team
BBC Panorama

HSBC allowed fraudsters to transfer millions of dollars what is a bank sar the world even after it had learned of their scam, leaked secret files show.

Britain's biggest bank moved the money through its US business to HSBC accounts in Hong Kong in 2013 and 2014.

Its role in the $80m (£62m) fraud is detailed in a leak of documents - banks' "suspicious activity reports" - that have been called the FinCEN Files.

HSBC says it has always met its legal duties on reporting such activity.

The files show the investment scam started soon after the bank was fined $1.9bn (£1.4bn) in the US over money laundering. It had promised to clamp down on these sorts of practices.

The scam was a Ponzi scheme - a notorious type of investment racket that pays existing stakeholders with money collected from new members.

Lawyers for duped investors say the bank should have acted sooner to close the fraudsters' accounts.

The documents leak includes a series of other revelations - such as the suggestion one of the biggest banks in the US may have helped a notorious mobster to move more than $1bn.

What are the FinCEN Files?

The FinCEN Files are a leak of 2,657 documents, at the heart of which are 2,100 suspicious activity reports, or SARs.

SARs are not evidence of wrongdoing - banks send them to the authorities if they suspect customers could be up to no good.

By law, they have to know who their clients are - it's not enough to file SARs and keep taking dirty money from clients while expecting enforcers to deal with the problem. If they have evidence of criminal activity, they should stop moving the cash.

The leak shows how money was laundered through some of the world's biggest banks and how criminals used anonymous British companies to hide their money.

The SARs were leaked to the Buzzfeed website and shared with the International Consortium of Investigative Journalists (ICIJ). Panorama led the research for the BBC as part of a global probe.

The ICIJ led the reporting of the Panama Papers and Paradise Papers leaks - secret files detailing the offshore activities of the wealthy and the famous.

Fergus Shiel, from the consortium, said the FinCEN Files are an "insight into what banks know about the vast flows of dirty money across the globe… [The] system that is meant to regulate the flows of tainted money is broken".

The leaked SARs had been submitted to the US Financial Crimes Enforcement Network, or FinCEN between 2000 and 2017 and cover transactions worth about $2 trillion.

FinCEN said the leak could impact US national security, risk investigations, and threaten the safety of those who file the reports.

But last week it announced proposals to overhaul its anti-money laundering programmes.

The UK also unveiled plans to reform its register of company information to clamp down on fraud and money laundering.

The investment scam that HSBC was warned about was called WCM777.

It was started by Chinese national Ming Xu. Little is known about how he came to be living in the US, although he claims to have studied for an MA in California.

Based in the Los Angeles area, Xu - or "Dr Phil" as he styled himself - acted as a pastor at evangelical churches.

Xu said he was operating a global investment bank, World Capital Market, that would pay out 100% profit in a 100 days. In reality, he was running the Does amazon have apple pay Ponzi scheme.

Through travelling seminars, Facebook and webinars on YouTube, it raised $80m selling supposed investment opportunities in cloud computing.

Thousands of people from the East Asian and Latino communities were taken in. The fraudsters used Christian imagery and targeted poor communities in the US, Colombia and Peru. There were also victims in other solano county jail in custody list, including the UK.

But the impact were not just financial. The scheme led to the death of investor Reynaldo Pacheco, who was found under water on a wine estate in Napa, California, in April 2014. Police say he had been bludgeoned with rocks.

He signed up to the scheme and was expected to recruit other investors. The promise was everyone would get rich.

A woman Mr Pacheco, 44, introduced lost about $3,000. That led to the killing by men hired to kidnap him.

"He literally was trying to… make people's lives better, and he himself was scammed, and conned, and he unfortunately paid for it with his life," said Sgt Chris Pacheco (no relation), one of the officers who investigated the killing.

Reynaldo, he said, "was murdered for being a victim in a Ponzi scheme".

By then, regulators in California had already told HSBC it was investigating WCM777. This happened in September 2013. It also alerted its residents to the fraud.

And California, along with Colorado and Massachusetts, took action against WCM for selling unregistered investments.

HSBC did spot suspicious transactions going through its systems. But it was not until April 2014, after US financial regulator the Securities and Exchange Commission filed charges, that the WCM777 accounts at HSBC in Hong Kong were shut.

By that time there was nearly nothing left in them.

What do the suspicious activity reports show?

HSBC filed its first SAR about the scam on 29 October 2013 relating to more than $6m sent to the fraudsters' accounts in Hong Kong.

Bank officials said there what is a bank sar "no apparent economic, business, or lawful purpose" for the transactions - and noted allegations of "Ponzi scheme activities".

A second SAR in February 2014 identified $15.4m in suspicious transactions, and a "Potential Ponzi scheme".

A third report in March related to a company associated with WCM777 and nearly $9.2m, and noted the regulatory moves by US states and an investigation ordered by Colombia's president.

The WCM777 scheme emerged months after HSBC avoided a US criminal prosecution over money laundering by Mexican drug barons. It did so by agreeing to improve procedures.

Analysis by the ICIJ shows that between 2011 and 2017 HSBC identified suspicious transactions moving through accounts in Hong Kong of more than $1.5bn - about $900m linked to overall criminal activity.

But the reports failed to include key facts about customers, including the ultimate beneficial owners of accounts and where the money came from.

Banks are not allowed to talk about suspicious activity reports.

HSBC said: "Starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions… HSBC is a much safer institution than it was in 2012."

The bank added the US authorities had determined that it "met all of its obligations under the [agreement struck with US prosecutors]".

Xu was eventually arrested by the Chinese authorities in 2017 and jailed for three years over the scam.

Speaking to the ICIJ from China, Xu said HSBC had not contacted him about his business. He denied WCM777 was a Ponzi scheme, saying it was wrongly targeted by the SEC and his aim had been to build a religious community in California on more than 400 acres of land.

A Ponzi scheme - named after early 20th Century conman Charles Ponzi - does not generate profits from the cash it raises. Instead investors are paid a return from money coming in from other new investors.

More and more investors are needed to cover these payments. Meanwhile, the owners of the scheme move money into their own accounts.

A Ponzi scheme will collapse if it cannot find enough new investors.

What else did the leak find?

The FinCEN Files also show how multinational bank JP Morgan may have helped a man known as the Russian mafia's boss of bosses to move more than a $1bn through the financial system.

Semion Mogilevich has been accused of crimes including gun running, drug trafficking and murder.

Banks have measures in place to stop profits from crime going through the financial system but a SAR filed by JP Morgan in 2015 after the account was closed, reveals how its London office may have moved some of the cash.

It details what is a bank sar JP Morgan, provided banking services to a secretive offshore company called ABSI Enterprises between 2002 and 2013, even though the firm's ownership was not clear from the bank's records.

Over one five-year period, JP Morgan sent and received wire transfers totalling $1.02bn, the bank said.

The SAR noted ABSI's parent company "might be associated with Semion Mogilevich - an individual who was on the FBI's top 10 most wanted list".

In a statement, JP Morgan said: "We follow all laws and regulations in support of the government's work to combat financial crimes. We devote thousands of people and hundreds of millions of dollars to this important work."

The FinCEN Files is a leak of secret documents which reveal how major banks have allowed criminals to move dirty money around the world. They also show how the UK is often the weak link in the financial system and how London is awash with Russian cash.

The files were obtained by BuzzFeed News which shared them with boost mobile account number prepaid International Consortium of Investigative Journalists (ICIJ) and 400 journalists around the world. Panorama has led research for the BBC.

FinCEN Files: full coverage; follow reaction on Twitter using #FinCENFiles; in the BBC News app, follow the tag "FinCEN Files; Watch What is a bank sar on the BBC iPlayer (UK viewers only).

More on this story

Источник: https://www.bbc.com/news/uk-54225572

By Leslie Callaway, CRCM, CAFP; Mark Kruhm, CRCM, CAFP; and Rhonda Castaneda, CRCM.

QWho has the authority to make the ultimate determination about whether the bank must file a Suspicious Activity Report? For example, if the business unit believes a SAR is unnecessary, based on its familiarity with the customer, but the Bank Secrecy Act officer believes that one should be filed, who makes the final determination?AThe BSA officer makes the determination. An important aspect of BSA compliance is that the BSA officer must be able to act with authority and independence, a point emphasized in the updated provisions of the FFIEC BSA/AML Examination Manualreleased in April 2020. As stated in that update, the BSA officer must have “the ability to undertake the BSA compliance officer’s role without undue influence from the bank’s business lines.” In the past, there have been examples where a business line overruled the BSA officer in making such decisions that resulted in fines and sanctions against the bank. Thus, in this case, the BSA officer makes the final decision. (Answer provided October 2020.)QDue to an increase in fraud, my bank is revising its loan policy and plans to decline loan requests from non-U.S. citizens, including permanent resident aliens (green card holders) who live and work in our community. Are there any potential Regulation B (Equal Credit Opportunity Act) issues we should consider when making this policy change?APossibly. Although Regulation B permits banks to consider immigration status, the bank must focus its consideration on the bank’s ability to be repaid or to collect on the debt, if necessary. Additionally, some state and federal civil rights laws prohibit discrimination based on alienage (lack of citizenship).

Under Regulation B, creditors may consider citizenship but not national origin. Section 1002.6(b)(7) states that a creditor may consider the applicant’s immigration status or status as a permanent resident and any additional information that may be necessary to can you order online with a cash app card the creditor’s rights and remedies regarding repayment. A permanent resident alien is a lawful resident of the United States who has been granted the right to live and work in the U.S. indefinitely. In contrast, other aliens may lawfully stay in the U.S. on a temporary basis, e.g., persons who hold visas to study or work in the U.S. for a specified time.

Comment two to §1002.6(b)(7) states that denial of credit because the applicant is not a citizen “is not per se discrimination based on national origin.” The commentary further states that a person’s immigration status and ties to the community (such as employment and residence) could have a bearing on a creditor’s ability to obtain repayment. Finally, the commentary is clear that creditors may differentiate between non-citizens: those who are permanent residents that have resided in the U.S. for a long time and those who are what is a bank sar the country temporarily, for example, on a student visa.

Banks should consider that under the regulation, creditors may look at and consider immigration status in determining the applicant’s ability to repay and likelihood of repaying the loan and the creditor’s ability to collect the debt if the applicant were to default. However, if a bank lends only to citizens and declines applications from permanent resident aliens who otherwise meet the bank’s standards of creditworthiness, it should be prepared to explain the reasoning behind its policy. Additionally, lawsuits have been filed (and settled) challenging banks’ policies of lending only to citizens and permanent resident aliens under state and federal civil rights laws that prohibit discrimination on the basis of alienage. (Answer provided October 2020.)

QThe flood rules require that a bank provide the borrower a notice of special flood hazards and availability of federal disaster relief assistance within a “reasonable time” before consummation of the loan when a property is in a designated flood zone requiring flood insurance. What is considered a “reasonable” time by the regulators?AThe agencies noted in the flood insurance compliance exam manuals that 10 days is generally considered a “reasonable” time interval for provision of the notice before consummation. (Answer provided October 2020.)

Answers are provided by ABA Regulatory Policy and Compliance team members Leslie T. Callaway, CRCM, CAFP, senior director, compliance outreach and development; Mark Kruhm, CRCM, CAFP, senior compliance analyst; and Rhonda Castaneda, CRCM, senior compliance analyst. Answers do not provide, nor are they substitutes for, professional legal advice. Answers are current as of the response date at the end of each item.

Bank Secrecy ActFair lendingFlood insuranceSuspicious Activity Reports

Источник: https://bankingjournal.aba.com/2021/01/who-makes-the-final-decision-about-filing-a-sar/

Suspicious Activity Reports (SAR) drafted by financial institutions contain some of the most valuable information available to law enforcement agencies in the fight against financial crime. Yet, the FinCEN Files scandal of 2020 has shown that major banks have consistently failed to write and submit proper reports over the years. What can we learn from their mistakes to be able to compose the perfect SAR?


In 2018, more than 2.100 SARs leaked from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), exposing their peoples savings bank new melle hours and insensitivities. Known as the FinCEN Files, the wrongdoing exposed by Buzzfeed News and the International Consortium of Investigative Journalists (ICIJ) demonstrated how an ineffective SAR regime pushed major global financial institutions to facilitate money laundering, drug trafficking, terrorism, and Ponzi schemes.

The way SARs are handled are often riddled with basic errors. What is a bank sar such as narrative, keywords, objective, and timing of submission can make a real difference in the quality of the reports. FinCEN Files have highlighted how SARs were often submitted too late, with incomplete information, and for the wrong reasons.

SARs are submitted too late and with incomplete information

Law enforcement agencies what is a bank sar financial intelligence units (FIU) are flooded with poor quality reports, making it burdensome or near impossible to handle them with the attention they deserve. So, what makes a perfect SAR?




What is an SAR and what it is not

Before diving into the technical aspects of how to write a perfect Suspicious Activity Report, one must first understand what an SAR is and what it is not.

What is an SAR

An SAR is a short document drafted by a financial institution to report a suspicious behaviour or transaction by part of a client. If a person is suspected of being implicated in a form of financial crime, the report should briefly explain the identity of the person and a short narrative describing the transaction or the behaviour that is deemed suspicious.



An SAR is not a defensive document used for backside covering, meaning they don’t exist to appease authorities, make your financial institution look good, or to avoid fines. Reporting a suspicious behaviour should be a proactive activity to stop the flow of dark money, not to shield a bank from past mistakes or negligence.



How do you construct a narrative for an SAR?

SARs are read by analysts in national FIUs who must try to understand who your client is and why the transaction he/she performed is suspicious. To avoid the mistake of writing a confusing or incomplete report that has little use, put yourself in the shoes of the reader.

To help you write a better narrative for your STRs, use the 5 W’s:

  • 1

    Who: Incorporate the necessary information on the identity of the person/s that you are reporting on. This includes their name, address, job title, date of birth, and account number. If a pet store employee is dealing in transactions that are beyond their income, or a nineteen-year-old is handling millions of euros, this can help the FIU analyst to quickly pinpoint the suspicious behaviour. For companies, make sure to list the identities of the UBOs.

  • 2

    When: Add the precise date of when the suspicious behaviour occurred. If it happened over a span of time, write out the timeline of events. If the activity involved multiple withdrawals at an ATM, give the precise hours of each withdrawal. This will help the FIU analyst get a better sense of how the suspicious activity evolved.

  • 3

    Where: If applicable, be sure to include the what is a bank sar of where the suspicious action took place such as the address of the branch or of the ATM. A person who lives in one town but goes to another town to withdraw cash or goes to multiple branches to deposit cash can help FIU what is a bank sar spot the warning signs of an illegal activity.

  • 4

    What: Detail what happened that made you think that the activity was suspicious. List the various steps of the transaction/s and/or cash withdrawals/deposits. This is where the FIU analyst will truly understand what happened. Be concise but don’t leave out necessary details and make sure to add how the activity was flagged – monitoring tool, lookback, etc.

  • 5

    Why: Explain why you think the behaviour is suspicious. List the reasons: money laundering, tax evasion, funnel account, etc. This will help the FIU analyst in categorising your report. FIUs like FinCEN want you to use keywords to help flag the type of activity you are reporting on. Their list of keywords can be helpful to any financial institutions around the world.






Do's and don'ts of a Suspicious Activity Report

Now that you are aware of what constitutes a good narrative for an STR, let’s look at what makes a Suspicious Activity Report stand out and what doesn’t.



Quality vs quantity

Financial Intelligence Units are swamped with STRs and are unable to sift through them in an efficient manner. Between 2011 and 2017, FinCEN received over 12 million SARs from financial institutions.


SARs are not defensive documents

As mentioned earlier in the article, financial institutions have the tendency to draft SARs as defensive documents against earlier mishaps and disregards. This not only decreases the value and quality of the reports, but it also does not protect banks from legal action. The filing of an SAR does not exonerate a financial institution from responsibility and regulators may continue to act against them in court if deemed necessary.



This defensive mechanism is often associated with excessive reporting. Known as “crying wolf,” SARs are often drafted for any behaviour or transaction that is even slightly suspicious without an actual investigation from the part of the financial institution just to “protect” themselves from regulators and showcase that their AML/CTF regimes are optimal. However, 90% of all STRs have no immediate value with only 10% leading to an investigation by FIUs.

When writing an SAR, aim for quality, not quantity. Before embarking on the actual drafting of the report, make sure to investigate if the transaction is suspicious or not. This can be done by asking for documents related to the transaction or by what is a bank sar the client’s account manager if the client’s behaviour can be regarded as normal or not. However, this should not be done to instil the fear of reporting.

Quality of SARs


Understanding what an STR is, perfecting narrative, and knowing the right keywords is useless if one does not focus their attention on quality over quantity, and those elements put together are the key to writing the perfect SAR.


Источник: https://pideeco.be/articles/how-to-write-perfect-suspicious-activity-report/

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