SAR Filing

SAR Filing

Drafts a FinCEN-ready SAR (Form 111) from transaction records, investigation files, and institutional data.

Prerequisites

Gather before drafting:

1. Transaction records — amounts, dates, account numbers, instrument types
2. CIP/KYC documentation — government IDs, SSN/TIN, beneficial ownership
3. Investigation file — alerts, internal notes, employee observations
4. Filer details — institution legal name, EIN, LEI, regulator, SAR contact
5. Prior SAR history (continuing filings) — BSA IDs, filing dates

Quick Start

1. Determine filing type: Initial / Continuing / Corrective
2. Verify thresholds: ≥$5,000 (subject identified) or ≥$25,000 (no subject)
3. Confirm deadline: 30 days from detection (60 if no subject identified)
4. Draft sections in order below
5. Run compliance checklist before submission

SAR Sections

1. Filing Header

2. Subject Identification

Classify each party: Subject, Purchaser/Sender, Payee/Receiver, Other.

Individuals: Legal name, aliases, DOB, SSN/ITIN, address, government ID (type/number/jurisdiction/expiration). Foreign nationals: passport, citizenship, visa, high-risk jurisdiction nexus.

Entities: Legal name, DBAs, EIN, formation state/date, business nature, beneficial owners (≥25% ownership or substantial control).

Relationships: Document familial, business, signatory, nominee, or intermediary connections between parties.

3. Account Detail

For each account: number, type, open date, status (active/closed/restricted/frozen), holders/signers, stated purpose, baseline activity profile, and deviations triggering concern.

Include: branch contacts, prior compliance concerns, correspondent/MSB/processor relationships with fund-flow tracing, CIP/CDD/EDD procedures performed, closure details if applicable.

4. Activity Classification

Select FinCEN categories:

Thresholds: ≥$5,000 (subject identified) / ≥$25,000 (no subject). For blocked/attempted transactions, explain why filing is warranted. Confirm no exemption applies and filing is not duplicative.

State total dollar amount, currency, and complete time period.

5. Narrative

Address Who/What/When/Where/Why/How chronologically:

1. Detection — How identified (alert, referral, LE inquiry, audit); specific trigger; why not false positive
2. Timeline — Each significant transaction: date, type, amount, source→destination, stated purpose, unusual characteristics
3. Red flags — Map facts to indicators: reluctance to provide info, no economic purpose, rapid in/out movement, structuring, shell companies, high-risk jurisdictions, profile inconsistencies. Cite FFIEC BSA/AML Manual or FinCEN advisories where applicable.
4. Investigation — Customer contact attempts and responses, why insufficient, public records research, prior SARs (BSA IDs and dates)
5. Conclusion — Factual basis for filing. Objective tone only — no conclusions about criminal intent.

6. Supporting Documentation

Index attachments by category: transaction records, customer ID docs, correspondence, monitoring system output, investigation memos, inter-institution communications. Label each with title and narrative relevance.

Compliance Checklist

• [ ] Filed within 30-day deadline (60-day if no subject)
• [ ] All mandatory Form 111 fields completed
• [ ] Narrative addresses Who/What/When/Where/Why/How
• [ ] Dollar amounts accurate and aggregated
• [ ] All dates, account numbers, IDs verified
• [ ] Senior management/board notified per policy
• [ ] Legal counsel consulted if civil liability or non-BSA issues
• [ ] Reviewing/approving officers documented
• [ ] Filed via BSA E-Filing; confirmation + BSA ID retained
• [ ] File stored separately, access restricted to need-to-know
• [ ] 5-year retention initiated from filing date
• [ ] No disclosure to any subject (31 U.S.C. § 5318(g)(2))
• [ ] No inadvertent tipping via closure letters or communications
• [ ] Immediate LE notification assessed

Critical Rules

• Confidentiality is absolute. SAR disclosure prohibition (31 U.S.C. § 5318(g)(2)) carries criminal penalties. Never reference SAR existence in customer-facing communications.
• Objectivity only. State facts and observations. Never conclude criminal guilt or legal violations.
• Over-include. FinCEN prefers detailed narratives.
• Standalone. Must be comprehensible without access to underlying bank records.
• Continuing filings must reference prior BSA IDs and identify what is new.
• Safe harbor (31 U.S.C. § 5318(g)(3)) applies to good-faith filings — document investigative process thoroughly.