Answer:
It is not required that a bank notify its primary regulator when an SAR is filed on an employee, but can be viewed as a courtesy. Some regulators have specifically asked for a "heads up" on employee or other potential high profile SARs. It can take a few weeks before knowledge of SARs filed makes its way to your specific regulators, hence the request for notice. This is similar to notifying your regulator if you find a legal lending limit violation, information security breach (although this is required), etc. They don't want unpleasant surprises. This would be especially important in a situation where an employee might be arrested and the story gets in to the newspaper. Regulators don't want to find out these things by a call from a reporter.
First published on BankersOnline.com 1/22/07
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