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Financial Institution Letters

BANK SECRECY ACT
Sharing Suspicious Activity Reports With Controlling Companies
FIL-5-2006
January 20, 2006


Summary: The Financial Crimes Enforcement Network and the federal banking agencies – the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision – are issuing the attached guidance to notify institutions when a Suspicious Activity Report (SAR) can be shared with a holding company or other controlling company, or with the head office of a U.S. branch or agency of a foreign bank.

Highlights:
  • The Financial Crimes Enforcement Network (FinCEN) and the federal banking agencies are providing guidance to confirm that sharing a SAR with a controlling company in accordance with specified procedures is acceptable.
  • A controlling company includes a bank or savings association holding company, or a company having the power directly or indirectly to direct the management or policies of an industrial loan company or a parent company, or to vote 25 percent or more of any class of voting shares of an industrial loan company or a parent company.
  • Sharing a SAR within an organization is allowable for the head office, or for the controlling entity or party to discharge its oversight responsibilities with respect to enterprise-wide risk management and compliance with applicable laws and regulations.
  • Accordingly, a bank or savings association (depository institution) may disclose a SAR to its controlling company(ies), whether domestic or foreign; and a U.S. branch or agency of a foreign bank may disclose a SAR to its head office outside the United States.
  • Depository institutions, as part of their anti-money laundering program, must have written confidentiality agreements or arrangements, and proper internal controls in place to protect the confidentiality of the SAR.
  • Please distribute this information to the appropriate personnel in your institution.

Distribution:
FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
BSA Compliance Officer

Related Topics:
Bank Secrecy Act

Attachment:
Interagency Guidance on Sharing Suspicious Activity Reports with Controlling Companies
Interagency Guidance on Sharing Suspicious Activity Reports with Controlling Companies - PDF 21k (PDF Help)

Contact:
Senior Program Analyst Charles W. Collier at SAS FIL@FDIC.gov or (202) 898-3673

Printable Format:
FIL-5-2006 - PDF 37k (PDF Help)

Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2006/index.html.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).



Last Updated 01/20/2006 communications@fdic.gov

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