BSA Savior

Question 1

What is the primary purpose of reporting SARs to FinCEN?

Answer 1

The primary purpose of the reporting requirement is to assure that the information needed by investigators and prosecutors is provided in an orderly and timely fashion.

Question 2

Suspicious Activity Reports shall be filed if:

Answer 2

1. DOE or IAP / Any Amount - An employee, officer, director, agent or other institution-affiliated party (ex. Attorney) is suspected of committing or aiding in the commission of a crime involving the institution (Any amount)
2. Known Suspect / $5M - A known or suspected crime is committed against the institution, there is actual or potential loss to the institution of $5M or more, and possible suspect(s) (not an employee, officer, director, agent, or IAP) can be identified
3. Unknown Suspect / $25M - A known or suspected crime is committed against the institution, there is actual or potential loss to the institution of $25M or more, and a potential suspect cannot be identified
4. Criminal Activity / $5M - A financial transaction of $5M or more was conducted or attempted using the institution as a conduit for criminal activity. (More specifically, the funds involved in the transaction were derived from illicit activity, the purpose of the transaction was to hide or disguise funds from illicit activities, or the purpose of the transaction was to evade the BSA requirements.)

Note: Part 353 says transaction of $5M or $25M, not potential loss.
If you file a SAR, you must also file a CTR if the cash transaction is over $10M.

Question 3

Financial institutions are required to file a SAR within ____ days of detecting the criminal activity

Answer 3

30 calendar days; however, if management is unable to identify a suspect within 30 days, reporting may be delayed until the earlier of an additional 30 calendar days or until a suspect is identified (cannot be delayed more than 60 calendar days).

Question 4

How long do you have to file a CTR?

Answer 4

15 days if written and mailed and 25 days if electronic. Required information is Name and tax ID number.

Question 5

What are phase I BSA exemptions?

Answer 5

1. Bank
2. Dept./agency of US
3. Entity established by US/State/Pol. Sub.
4. Stock traded on NYSE,AMSE, NASDAQ - not a bank (except emerging or small cap headings)
5. Subsidiary of #4 (51% is owned by the listed entity)
6. 4&5 only count for domestic operations

Question 6

What are phase II exemptions?

Answer 6

Non listed Business and payroll customer if?

1) had account for 2 months
2) makes regular (5 per year) transactions of >$10M
3) Be registered in US

Note: Nonlisted business must not have more than 50% of gross revenues derived from ineligible businesses.

Question 7

What is considered an ineligible business?

Answer 7

BEAT IT “PRANO” —ADD CASINO!!!! “ENTITIES INVOLVED IN GAMING OF ANY KIND”
• Businesses that charter ships, aircraft, or buses
• Entities involved in gaming
• Auto dealers, BOAT DEALERS
• Those engaged in the practice of law, medicine, or accountancy
• Investment bankers/advisors
• Trade union activities
• Pawn brokers
• Real estate brokerage, closing, or title insurance
• Auction services
• Non-bank financial institutions
• Others specified by FinCEN

Question 8

Who / what else might also be ineligible for exemption?

Answer 8

1. An individual

2. An entity earning more than 50% of its revenue from ineligible businesses

Question 9

How often must exempt companies be reviewed?

Answer 9

At least annually for all Phase II and for companies listed on an exchange under
Phase I. Banks and government related entities no longer need to be verified annually.

Question 10

How often must exemptions be filed?

Answer 10

Only Once (Phase I)