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Sar Confidentiality Agreement

Financial institutions often encounter suspicious transactions that warrant filing a “SAR”) report. In this case, the Bank Secrecy Act (“BSA”) and federal regulations expressly prohibit unauthorized disclosure of the RAD or any information that may reveal the existence of the RAD. This confidentiality requirement can put some staff, particularly those who have close relationships with SAR clients, in a difficult situation. Important work may have been devoted to developing the relationship, which can be an important source of current or future revenue for the institution. Like FinCEN, the CCO recognizes that, in order to protect the confidentiality of an RAD, all information that would reveal the existence of an RAD must have the same protection against disclosure. The confidentiality of SARs must be preserved for a number of compelling reasons. For example, the disclosure of an RAD could lead to notification to those involved in the transaction, which is reported, and jeopardize all SAR investigations. In addition, the CCO believes that even the occasional disclosure of an RAD could chill a national bank`s willingness to submit SARS and indicate the degree of detail and completeness of the description of suspicious activities in THE SARs that will be useful to law enforcement agencies. If banks consider that an RAD can be used for purposes that have nothing to do with the enforcement and regulatory activities of the BSA, disclosure of this information could interfere with timely, appropriate and honest notification of suspicious transactions. Banks may also be reluctant to report suspicious transactions or delay reporting for fear that disclosure of an RAD will affect the bank`s relationship with its client. In addition, an RAD can provide insight into the detection of potential criminal behaviors that can be used by others to circumvent detection. Disclosure of an RAD could also jeopardize personal data or economically sensitive information or damage the reputation of individuals or companies that may be named. Finally, disclosure of an RAD for uses that have nothing to do with the repressive and regulatory purposes to which THE SARs are intended increases the risk that bank employees or others involved in the preparation or filing of an RAD will be subject to retaliatory measures by persons whose criminal behaviour has been reported.

These reasons for respecting the confidentiality of SARs also apply to all information that would reveal the existence of an RAD. Therefore, the CCO, like FinCEN, proposed to amend the generalization of its rules to launch the printed page 75579, namely that “any information that would reveal the existence of an RAD” must also be treated confidentially. The introduction would also indicate that sar information cannot be disclosed unless it is authorized in the resulting narrow circumstances. VIENNA, Go. – The Financial Crimes Enforcement Network (FinCEN) today issued a final rule – the confidentiality of the Suspicious Activities Report as well as a advisory document and two advisory documents, as well as a communication on the availability of guidelines that together clarify and strengthen the scope of the confidentiality of the Suspicion Report (SAR) and expand the ability of some financial institutions to share SAR information with most related companies.