financial institution is required to file suspicious activity reports.
financial institution is required to file suspicious activity reports.
who is required to file suspicious activity reports?
financial institution
a sar has five sections each containing information about the filing institution or the activity in question:









































bullet::::- part i - subject information









































bullet::::- part ii - suspicious activity information









































bullet::::- part iii - information about financial institution where activity occurred









































bullet::::- part iv - filing institution contact information









































bullet::::- part v - suspicious activity information - narrative









































section::::penalties for non-compliance.









































financial institutions and their employees face civil and criminal penalties for failing to properly file suspicious activity reports, including any combination of large fines, regulatory restrictions, loss of banking charter, or imprisonment.









































section::::history.
suspicious activity report
section 356 deals with suspicious activity reports (sars). part (a) states that the secretary of treasury was required to create regulations that require brokers and dealers registered with the securities and exchange commission under the securities exchange act of 1934 to submit suspicious activity reports under section 5318(g) of title 31, united states code. the regulations filed were 31 cfr 103.11(ii), which amended the definition of a transaction to encompass any instrument within the definition of security in the securities exchange act of 1934, and 31 cfr 103.19, which requires suspicious transactions over $us5,000 be reported to fincen. 31 cfr 103.19 provides details on filing procedures, details several exceptions to the filing requirement and specifies that records must be retained for a period of 5 years by dealer-brokers. it also requires that reports made to fincen remain confidential and gives limited liability to the reporting broker-dealer for any disclosures to appropriate authorities. failure to file reports may be a violation of the bsa.
patriot act, title iii, subtitle b