New SAR

The bank regulatory agencies, working with FinCEN, have issued a new Suspicious Activity Form ("SAR"). Financial institutions can - and should - begin using the new forms immediately.

The differences are small but significant. First, there is now an additional option to check to describe the nature of the crime. The form now officially includes "Computer Intrusion" in Part III. This addition giveofficial recognition to a variety of computer-related crimes. New instructions have been added to explain how to report suspected computer crimes.

Another change should help to resolve what has sometimes been a knotty problem. The new form deletes the sections requiring "witness" and "preparer" information. Instead, the form collects information on whom to contact for assistance. The revised form also somewhat simplifies the way to report whether the bank has contacted any law enforcement agencies.

Finally, the report will no longer call for distinguishing between initial, supplemental, and corrected reports. Filers will indicate when a report is a corrected report, following new instructions.

And New SAR Software
In case you want to file SARs electronically, the agencies have developed new software to support the new form. The software is available on each agency's Internet site.

Copyright © 2000 Compliance Action. Originally appeared in Compliance Action, Vol. 5, No. 8, 7/00