Regulatory Alerts2010-11-23
Added
Frequently Asked Questions: Suspicious Activity Reporting Requirements for Mutual Funds
This guidance clarifies that mutual funds must file Suspicious Activity Reports (SAR-SF) on FinCEN Form 101 for transactions involving at least $5,000 that are suspected of involving illegal activity, evading Bank Secrecy Act requirements, lacking a lawful purpose, or facilitating criminal activity. The document permits joint filing by multiple mutual funds or financial institutions involved in the same transaction and authorizes mutual funds to share SAR information with their controlling investment advisers, including foreign entities, provided written confidentiality agreements are in place. Mutual funds are required to file reports within 30 days of detection, or up to 60 days if a suspect cannot be identified, and must retain related records for five years.