Proposed Changes in Reporting
Crimes and Suspicious Activity
The Federal Deposit Insurance Corporation (FDIC)
has joined the other federal financial institution regulatory agencies in proposing to
amend its rules regarding the reporting of known or suspected crimes by insured state
nonmember banks. The proposal updates and clarifies the reporting requirements, and
implements a new referral process and a new interagency reporting form, the Suspicious
Activity Report (SAR). The proposal also reduces substantially the reporting burden on
banks while enhancing access to suspicious activity information by both the federal law
enforcement and the federal financial institutions regulatory agencies.
The principal proposed changes include: (i)
raising the mandatory reporting thresholds for criminal offenses, thereby reducing banks'
reporting burdens; (ii) filing only one form with a single repository, rather than
submitting multiple copies to several agencies, thereby further reducing reporting
burdens; and (iii) clarifying the criminal referral and reporting requirements of the
financial institution regulatory agencies and Treasury associated with suspicious
Banks will be able to file the SAR in several
ways, including submitting an original or a photocopy of the form or by magnetic
submission, such as a computer disk. Computer software, which will be provided free of
charge, is being developed to assist banks in preparing and filing SARs.
Attached is a copy of the Federal Register
notice containing the proposed rule changes. If you have any questions, please contact Ms.
Carol A. Mesheske, Chief, Special Activities Section, at (202) 898-6750.