Sonan Obin

Meticulous Private Investigator at US Bank National Association with expertise in information gathering. Demonstrated exceptional attention to detail with the guidance of supervisors. Eager to listen, learn from and help superiors reach team productivity goals

Sonan’s Summary of the FinCen SAR Electronic Filing Instructions;

• Financial institutions are protected from civil liability for reporting suspicious transactions to authorities, whether mandatory or voluntary, under federal law (31 U.S.C. 5318(g)(3)). This protection covers disclosures made in good faith to prevent violations of law.
  
• Confidentiality: SARs and related information are confidential and cannot be disclosed except as allowed by law (31 U.S.C. 5318(g)(2)) or FinCEN regulations (31 CFR Chapter X). Disclosure to affiliates subject to SAR rules is permitted to identify suspicious activities.
  
• Prohibition on Disclosures: Financial institutions cannot notify anyone involved in a reported transaction that it has been reported, except to fulfill official duties. This includes disclosing SAR information to specific governmental or examining authorities entitled by law.
  
• Filing Requirements: Various financial institutions must file a SAR with FinCEN if they detect transactions involving at least $5,000 and suspect them of involving illegal activity, evading reporting requirements, lacking lawful purpose, or facilitating criminal activities.
  
• Additional Requirements for Banks: Banks have specific thresholds for filing SARs, including reporting insider abuse regardless of the amount involved, and reporting violations aggregating $5,000 or more where a suspect can be identified.
  
• Voluntary Filings: Financial institutions may voluntarily file SARs for transactions relevant to potential law violations, even if not required by regulations.
  
• Exceptions: There are exceptions to SAR reporting requirements, such as for robberies reported to law enforcement or for certain types of stolen securities reported under specific regulations (17 CFR § 240.17f-1).
  
• Broker-dealers (BDs) don't need to file a FinCEN SAR for violations of securities laws unless it's specifically related to certain regulations.
  
• Futures commission merchants (FCMs) or introducing brokers (IB-C) don't need to file for violations of the Commodity Exchange Act unless it's related to specific provisions.
  
• Reporting Criteria: Insurance companies are exempt from reporting false information unless it's related to money laundering or terrorism. Issuers of money orders or traveler’s checks don't need to report transactions involving less than $5,000, unless these transactions are suspicious.
• Currency Transaction Reporting (CTR): Financial institutions must file a Currency Transaction Report (CTR) for transactions exceeding $10,000. If such transactions are also suspicious, a FinCEN SAR must be filed in addition to the CTR.
• Electronic Filing Requirements: Reports must be filed electronically through FinCEN's BSA E-Filing System. Institutions filing individually use a discrete FinCEN SAR, while batch or system-to-system filers follow specific electronic filing specifications.
  
• Correcting and Amending Reports: If errors are found in a previously filed SAR, a corrected report must be filed. An amended report is required if new information about suspicious activity is discovered.
• Continuing Reports: For ongoing suspicious activities, institutions may file continuing reports. These must include all relevant details and cumulative financial information related to the suspicious activity.
• Joint Reports: Multiple financial institutions can file a single FinCEN SAR for jointly reported suspicious activities involving them. Specific guidelines apply to such joint filings.
• Supporting Documentation: Filers can attach supporting documentation like transaction records in CSV format. All supporting documentation must be retained for five years from the date of filing.
• Data Formatting and Restrictions: Information must be recorded accurately and formatted according to FinCEN's specifications. Certain words and phrases are prohibited in the reports to ensure clarity and consistency.
• Institution Initiative: This refers to the financial institution's responsibility to initiate a SAR if they suspect suspicious activity.
  
• Initial Reports: Always mark the first report as an initial report.
  
• Check Boxes: Box 1b ("Correct/Amend prior report"): Check this if the current report corrects or updates information from a previous SAR. Box 1c ("Continuing activity report"): Check this if the current report relates to suspicious activity previously reported and continues over time. These reports should be filed at least every 90 days.
• Joint Filings: If multiple financial institutions are jointly filing a report, indicate this in Box 1a, 1b, or 1c and mark Box 1d ("Joint report"). Clearly identify all institutions involved in Part V of the SAR.
  
• Document Control Number (DCN) or BSA Identifier (BSA ID): If correcting or continuing a previous report (checked in 1b or 1c), enter the DCN or BSA ID of the previous SAR in field 1e. If unknown, enter zeros.
  
• Part I: Subject Information: This section collects details about individuals or entities involved in the suspicious activity. Fill out Part I for each known subject. Victims of the activity should not be listed here.
  
• Boxes 2a and 2b:
  
• Box 2a: Check if the subject in Part I is an entity (e.g., a company).
  
• Box 2b: Check if critical subject information (like name, address, etc.) is entirely unavailable for all subjects listed in Part I, except Item 24.
  
• Critical Items (Items 3, 4, 8, 9, 10, 11, 12, 13, 15, 16): These are key details required about each subject involved in the suspicious activity, such as name, address, date of birth, etc.
  
• Unknown Subjects: If some subjects are unknown, indicate this in Part I, and explain in Part V.
  
• Additional Instructions: Refer to General Instructions 3 through 5 for more details on the type of filing and specific requirements.
  
• Item 19: E-mail address
  
• Enter the subject's email address if known. Include all details and formats. Leave blank if unknown.
  
• Item 19a: Website (URL) address Enter the subject's website URL if known. Include all details and punctuation. Leave blank if unknown.
• Item 20: Corroborative statement to filer Check "Yes" if the subject has admitted to the suspicious activity. Otherwise, check "No".
• Item 21: Relationship of the subject to an institution Check all that apply regarding the subject's relationship with financial institutions listed in the report.
• Item 22: Status of relationship If a specific relationship status applies (continuing, terminated, suspended, resigned), indicate it here.
• Item 23: Action date If a relationship was terminated, suspended, or resigned, provide the date.
• Item 24: Financial Institution TIN and account number(s) affected Provide details of any accounts related to the subject involved in suspicious activity.
• Item 25: Subject’s role in suspicious activity Select the subject's role (Purchaser/Sender, Payee/Receiver, or both) in the suspicious activity.
• Part II: Suspicious Activity Information
  
• Item 26: Amount involved Enter the total dollar amount involved in the suspicious activity.
• Item 27: Date or date range of suspicious activity Provide the date or range of dates during which the suspicious activity occurred.
• Items 29-38: Types of suspicious activity Check all applicable types of suspicious activities from the provided categories.
• Item 39: Product types involved Check all applicable product types involved in the suspicious activity.
• Item 40: Instrument types/payment mechanisms involved. Check all applicable instrument types or payment mechanisms involved.
• Item 42: Product/Instrument description Provide a description if needed to clarify any product or instrument listed in Items 39 or 40.
• Item 47 - Type of Financial Institution: Purpose: Identifies the type of financial institution involved.
• Options: Includes categories like Casino/Card club, Depository institution, Insurance company, MSB (Money Service Business), Securities/Futures, and an option for other types not listed.
  
• Importance: Helps categorize the institution correctly under regulatory frameworks and determines which federal regulator oversees compliance with the Bank Secrecy Act (BSA).
  
• Item 53 - Legal Name of Financial Institution: Purpose: Records the official name of the financial institution involved.
• Details: Should match the legal name as documented in official incorporation or registration papers.
• Importance: Ensures accurate identification of the institution under investigation or reporting.
  
• Item 55 - TIN (Taxpayer Identification Number):
  
• Purpose: Captures the TIN of the financial institution.
  
• Options: Includes different types like EIN (Employer Identification Number), SSN-ITIN (Social Security Number or Individual Taxpayer Identification Number), or Foreign TIN.
  
• Importance: Helps in uniquely identifying the institution for regulatory and compliance purposes.
  
• Items 57-61 - Financial Institution Address:
  
• Purpose: Records the permanent address of the financial institution.
  
• Details: Includes street address, city, state (if applicable), postal code, and country.
  
• Importance: Provides location-specific details essential for regulatory and investigative purposes.
  
• Item 62 - Internal Control/File Number: Purpose: Assigns a unique identifier to the FinCEN SAR within the reporting institution.
• Details: Helps in tracking and referencing the SAR internally and by external parties like law enforcement.
  
• Importance: Ensures traceability and accountability within the reporting institution.
  
• Item 63 - Loss to Financial Institution (if applicable):Purpose: Reports any financial losses incurred due to the suspicious activity.
  
• Details: Should reflect known losses at the time of reporting.
  
• Importance: Quantifies the impact of suspicious activities on the financial institution.
  
• Items 64-70 - Branch Information (if applicable): Purpose: Provides details if the suspicious activity involves specific branches of the financial institution.
  
• Details: Includes branch role in the transaction, address, RSSD number (if known), and country.
  
• Importance: Identifies whether and how individual branches were involved, aiding in targeted investigations.
  
• Part III Record Requirement: Any suspicious activity that meets the criteria set by FinCEN must be reported using the format and guidelines provided in Part III of the SAR form. This applies to all financial institutions, including individuals operating as sole proprietorships using their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
  
• Financial Institution Definition in Part IV: The term "financial institution" in Part IV encompasses not only traditional banks but also individuals acting as sole proprietors using personal SSNs or ITINs to conduct financial activities that fall under FinCEN's regulations.
  
• Primary Federal Regulator (Item 78): This section requires selecting the appropriate federal regulatory agency that oversees compliance with the Bank Secrecy Act (BSA). Options include various agencies like the SEC, CFTC, IRS, etc. Choose the regulator that primarily enforces BSA compliance for the filing institution.
  
• Filer Information (Items 79-90): This includes providing the legal name (Item 79), Taxpayer Identification Number (TIN) (Item 80), type of TIN (Item 81), type of financial institution (Item 82), and other identifying details such as address, alternate name, and internal control/file number.
  
• Contact Information and Date Filed (Items 96-98): Enter details about the filing institution's contact office, phone number, and the date when the SAR is filed.
  
• Narrative (Part V): This is a crucial section to describe the suspicious activity in detail. It should include what made the activity suspicious, any unusual transactions, who benefited from the activity, and any supporting documentation (though not included with the SAR form itself). Use clear and concise language, referencing other parts of the SAR where necessary.
  
• Additional Instructions: There are specific guidelines on completing the narrative, including how to handle corrected or amended reports, continuing reports, and the inclusion of additional information not covered elsewhere in the SAR form.