Banking Agencies Propose SAR Filing Exemptions

Recently, the Federal Reserve Board, FDIC, NCUA, and the OCC issued separate notices of proposed rulemaking regarding filing requirements for Suspicious Activity Reports (SARs). Each agency seeks to amend its existing SAR reporting regulations to allow it to review exemption requests submitted by subject institutions to determine whether the proposed exemption is, “consistent with safe and sound banking practices” and to seek the Financial Crimes Enforcement Network’s (FinCEN) determination about whether the exemption would be consistent with the purposes of the Bank Secrecy Act (BSA). Note that for exemption requests from the OCC’s SAR regulation that would also require an exemption from FinCEN’s SAR regulation, a national bank and federal savings association would need to seek an exemption from both the OCC and FinCEN.

All comments regarding the proposals are to be received by February 22, 2021.