Many credit union compliance professionals are familiar with Suspicious Activity Reports (SARs). Section 748.1(c) of the NCUA regulations, and section 1020.320 of the FinCEN regulations require a credit union to file a SAR in certain situations. However, even when a SAR is not required, a credit union may choose to file one voluntarily if it feels a transaction merits the attention of law enforcement.
Despite the fact many credit unions file SARs regularly, they are not allowed to talk about them – federal laws and regulations impose strict confidentiality rules relating to SARs. Section 1020.230(e) states that the SAR itself, as well as any information that would reveal the existence of a SAR, is confidential and may not be disclosed unless a specific exception applies. This means that, in most circumstances, a credit union is prohibited from disclosing whether a SAR has been filed, even when a member wants to know if he or she has been the subject of a SAR.
Let’s review some of the other aspects of this confidentiality:
- Subpoenas. Section 1020.230(e)(i) specifically states that a credit union should not disclose a SAR, or information that would reveal the existence of a SAR, even if that information is requested in a subpoena. If a credit union receives such a subpoena, then the regulation instructs the credit union to decline to produce the SAR or information sought and to notify FinCEN of the request and the credit union’s response to it.
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