Bank Secrecy Act: Understanding Its Reporting Requirements

Bank Secrecy Act: Understanding Its Reporting Requirements

What to Report under BSA? – FinCEN Form 104 - Currency Transaction Report (CTR) – FinCEN Form 105 - Report of International Transportation of Currency or Monetary Instruments (CMIR) – Treasury Department Form 90.22.1 - Report of Foreign Bank and Financial Accounts (FBAR) – Suspicious Activity Report (SAR)

Currency Transaction Report (CTR) Who must file?

• A bank must file a Currency Transaction Report (CTR) (FinCEN Form 104) for each transaction in currency (deposit, withdrawal, exchange, or other payment or transfer) of more than $10,000 by, through, or to the bank.

When to file?

• File CTR with FinCEN within 15 days after the date of the transaction (25 days if filed electronically).

• Retain CTR copies for five years from the date of the report

International Transportation of Currency or Monetary Instruments Reporting (CMIR) Who must file?

• Each person (including a bank) who physically transports, mails, or ships currency or monetary instruments in excess of $10,000 at one time out of or into the United States must file a CMIR

When to file?

• CMIR must be filed with the appropriate CBP officer or with the commissioner of Customs within 15 days of receipt of the instruments (unless a report has already been filed).

When is a CMIR not required?

• Banks are not required to report these items if they are mailed or shipped through the postal service or by common carrier

Report of Foreign Bank and Financial Accounts (FBAR) Who must file?

• United States Persons are required to file an FBAR if:

• The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and • The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

When to file?

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The FBAR is a calendar year report and must be filed on or before June 30 of the year following the calendar year being reported.

Effective July 1, 2013, the FBAR must be filed electronically through FinCEN’s BSA E-Filing System.

Suspicious Activity Report (SAR) Who must file?

BSA requires every US national bank to file a Suspicious Activity Report (SAR) when they detect certain known or suspected violations of federal law or suspicious transactions related to a money laundering activity or a violation of the BSA.

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When is a SAR required?

SAR filing is required for any potential crimes: • involving insider abuse regardless of the dollar amount; • where there is an identifiable suspect and the transaction involves $5,000 or more; and • where there is no identifiable suspect and the transaction involves $25,000 or more

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When to file?

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SAR should be filed no later than 30 calendar days from the date of the initial detection of facts that may constitute a basis for filing a SAR. In cases where no suspect can be identified, the time period for filing a SAR is extended to 60 days

Want to learn more about anti-money laundering process, BSA requirements and best practices?

ComplianceOnline webinars and seminars are a great training resource. Check out the following links: • Managing an Effective AML Compliance Program • Are You Doing Your BSA/AML Risk Assessment Properly?

• How to Report under AML/BSA? • BSA/AML Compliance Checklist • How to Create Effective AML/BSA Compliance Program?

• How to Develop Risk Models for AML Monitoring Program?