Regulatory Alerts2012-03-02 | FinCEN Advisory – FIN-2012-A002Added
SAR Confidentiality Reminder for Internal and External Counsel of Financial Institutions (FinCEN Advisory – FIN-2012-A002)
Financial institutions and their current or former directors, officers, employees, agents, and contractors are prohibited from disclosing Suspicious Activity Reports (SARs) or any information revealing their existence. Unauthorized disclosures may result in civil penalties of up to $100,000 per violation, criminal penalties of up to $250,000 and/or five years imprisonment, and daily civil money penalties of up to $25,000 for anti-money laundering program deficiencies. The advisory requires institutions to inform all entrusted personnel of these confidentiality obligations and potential consequences, recommending measures such as need-to-know access limits and training. Institutions must immediately contact FinCEN's Office of Chief Counsel if they become aware of an unauthorized disclosure or receive a subpoena for a SAR from an unauthorized source.