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Financial Institution Letter

Proposed Rulemaking to Permit Additional Exemptions to Suspicious Activity Report Requirements

December 15, 2020
Notes
 

Summary:

On December 15, 2020, the FDIC Board of Directors authorized publication of a notice of proposed rulemaking that would amend the FDIC’s Suspicious Activity Report (SAR) regulation to permit the FDIC to issue additional, case-by-case exemptions from SAR filing requirements to FDIC-supervised institutions.  The FDIC expects that the amendments to the SAR regulation will reduce regulatory burden on financial institutions and encourage technological innovation in the banking sector.  Comments on the proposed rule will be accepted for 30 days after publication in the Federal Register .

Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised banks and savings associations, including community banks.

Highlights:

  • The FDIC’s current SAR regulation allows exemptions from SAR filing requirements for physical crimes (robberies and burglaries) and lost, missing, counterfeit, or stolen securities.
  • The proposed rule would amend the SAR regulation to permit the FDIC to issue additional, case-by-case exemptions from SAR filing requirements to FDIC-supervised institutions.
  • The proposed amendments would allow the FDIC, in conjunction with the Financial Crimes Enforcement Network, to grant exemptions to FDIC-supervised institutions that develop innovative solutions to otherwise meet Bank Secrecy Act requirements more efficiently and effectively.
  • The FDIC is proposing this rule as a proactive measure to address the likelihood that FDIC-supervised institutions will leverage existing or future technologies to report, share, or disclose suspicious activity in a different manner.
  • The FDIC expects the amendments to the SAR regulation will reduce regulatory burden on financial institutions and encourage technological innovation in the banking sector.
  • Comments on the proposed rule will be accepted for 30 days after publication in the Federal Register .

Suggested Distribution:

FDIC-Supervised Institutions

Suggested Routing:

Chief Executive Officer
BSA Compliance Office

Additional Related Topics:

  • Anti-Money Laundering
  • Countering the Financing of Terrorism
FIL-114-2020
Attachment(s)
Related Topics
Bank Secrecy Act

Last Updated: December 15, 2020