Yes, we believe that institutions must file SARs for continuing suspicious activity after the first 12-month period of suspicious activity and for as long as the suspicious activity continues.

When your bank identifies suspicious activity, it must file a SAR for “any suspicious transaction relevant to a possible violation of law or regulation,” but FinCEN has provided administrative relief for reporting continuing suspicious activity that otherwise would require frequent SAR filings identifying the same suspicious activity as a previously-filed SAR.

As FinCEN has noted, “[t]echnically, FinCEN’s suspicious activity reporting rules require a Suspicious Activity Report for each suspicious transaction. However, for ongoing suspicious activity, and to reduce the burden on financial institutions and law enforcement,” FinCEN allows financial institutions to file SARs related to continuing suspicious activity at least every 120 days, under the following timeline for the initial SAR filings:

• Identification of suspicious activity and subject: Day 0.
• Deadline for initial SAR filing: Day 30.
• End of 90 day review: Day 120.
• Deadline for continuing activity SAR with subject information: Day 150 (120 days from the date of the initial filing on Day 30).
• If the activity continues, this timeframe will result in three SARs filed over a 12-month period.

We do not interpret this timeline as allowing your bank to discontinue filing SARs on continuing suspicious activity after a 12-month period. Instead, we believe your bank should file SARs on continuing suspicious activity at least every 120 days after the initial filing and initial 90-day review for as long as the suspicious activity continues (with the option to file a continuing SAR earlier than the 120-day deadline when warranted).

Additionally, your bank “should continue to review the suspicious activity to determine whether other actions may be appropriate,” such as terminating the account, given the continued suspicious activity.

For resources related to our guidance, please see:

• FinCEN SAR Rules, 31 CFR 1020.320(a)(1) (“Every bank shall file with the Treasury Department, to the extent and in the manner required by this section, a report of any suspicious transaction relevant to a possible violation of law or regulation.”)

• FinCEN, FAQs Regarding the FinCEN SAR (“16. What is the filing timeframe for submitting a continuing activity report? FinCEN provided clarifying guidance on this question in Section 4 (Page 53) of SAR Activity Review Trends, Tips, & Issues #21. The guidance states ‘Financial institutions with SAR requirements may file SARs for continuing activity after a 90-day review with the filing deadline being 120 days after the date of the previously related SAR filing. Financial institutions may also file SARs on continuing activity earlier than the 120-day deadline if the institution believes the activity warrants earlier review by law enforcement.’

     So, for filings where a subject has been identified, the timeline is as follows:

• Identification of suspicious activity and subject: Day 0.
• Deadline for initial SAR filing: Day 30.
• End of 90 day review: Day 120.
• Deadline for continuing activity SAR with subject information: Day 150 (120 days from the date of the initial filing on Day 30).
• If the activity continues, this timeframe will result in three SARs filed over a 12-month period.”)

• FinCEN BSA/AML Manual, Suspicious Activity Reporting (“SAR Filing on Continuing Activity . . . . [FinCEN] guidance permits banks with SAR requirements to file SARs for continuing activity after a 90 day review with the filing deadline being 120 calendar days after the date of the previously related SAR filing. Banks may also file SARs on continuing activity earlier than the 120 day deadline if the bank believes the activity warrants earlier review by law enforcement. This practice will notify law enforcement of the continuing nature of the activity in aggregate. In addition, this practice reminds the bank that it should continue to review the suspicious activity to determine whether other actions may be appropriate, such as bank management determining that it is necessary to terminate a relationship with the customer or employee that is the subject of the filing.”)