Transcript Slide 1

AMLA Mid-Atlantic Chapter Event
Presenters:
Special Agent Crystal Womble
Investigative Analyst Marilyn Willis
Topics
Benefits of SARs
 Keys to writing complete SAR narrative
 Downloads
 Supporting Documentation
 Examples of cases initiated by SARs
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INTRODUCTION (WHO WE ARE)
The DCFCTF (DC Financial Crimes Task Force) is a working group made up
of the United States Attorney’s Office, IRS-CI, HSI, US Secret Service, US
Postal Service, the District of Columbia Metropolitan Police Department
and other law enforcement agencies
The purpose of our working group is to evaluate all SARS filed in the
District of Columbia area to determine that those have criminal potential
Two key functions:
1) De-confliction
2) Fosters information sharing and cooperation
Our group focuses primarily on Code A violations i.e. Bank Secrecy Act,
Structuring and Money Laundering
DEFINITIONS
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SAR – Title 31 U.S.C. § 5318 (g) requires a
financial institution to report any transaction
that it suspects 1) involves illegal activity, 2)is
designed to evade the BSA requirements, &
3)has no business/lawful purpose
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CTR – Title 31 U.S.C. § 5313 requires
financial institutions to file a Currency
Transaction Report for each deposit,
withdrawal, exchange of currency or other
payments in currency of more than $10,000
by, through, or to such financial institutions
REPORTING REGULATIONS
• The Code of Federal Regulations requires banks to
maintain a record of the SAR and supporting
documentation for 5 years from date of the filing
• A bank is required to file a SAR no later than 30 days after
the date of initial detection by the bank of facts that may
constitute the basis for filing a SAR
• Federal law requires financial institutions to file CTRs with
the Secretary of the Treasury within 15 days of the date on
which the reportable transaction occurred.
Benefits of SARS
(Bloomberg Article)
• Financial institutions help to identify
potentially problematic customers or
transactions
• Assist Law Enforcement with
identifying problems and potential
criminal activity
• Assist with existing cases to identify
financial activity
SAR Review Teams In Each Of IRS-CI’s 35 Field Offices
A Total Of 41 SAR Review Teams Throughout The Country
SAR Review Teams & Task Forces in US 94 Judicial
Nationwide Approximately 300-350
Employees Assigned To SAR-RT’s
Districts
56 Task Forces led by IRS-CI
More Centers”
are being
developed
Three “Lead Development
Now
Assigned To Do Proactive
Analysis of SAR Data. LDC’s In Denver, Indianapolis & Tampa
All Types Of SAR’s Reviewed, Including
LDC’s Comprised of Intelligence
Analyst
Agents Doing Analytical &
Bank SAR’s,
MSB&SAR’s,
Case Development
Work
Only.
Casino SAR’s,
Securities
and Futures SARs, etc.
SAR Review Teams In Each Of IRS-CI’s 35 Field Offices
Since 2006, each year, more
than 1 million SARs were
downloaded and reviewed.
2012 = 1,117,418
SAR Review Teams and Task Forces
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Multi-Agency-IRS-CI, FBI, ICE, DEA, USSS,
FDIC, USDA OIG
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Led by USAO
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Meet monthly
SAR ‘must-haves’
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Be concise & clear
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Provide a detailed description of the
known or suspected criminal violation or
suspicious activity
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Identify the essential elements of
information (the 5 W’s)
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Be chronological & complete
SAR NARRATIVE
• The most useful section of the SAR is Part V, the narrative
section
• The narrative should include the following information:
– Who is conducting the suspicious activity
– What instruments or mechanisms are being used to
facilitate the suspected transactions
– When did the suspicious activity take place (list dates)
– Where did the suspicious activity take place (list
branches/addresses)
– Amount involved (list activities)
– Why does the filer think the activity is suspicious
• Who is conducting the criminal
or suspicious activity?
Describe additional details about the
suspect(s) other than those provided
earlier in the SAR form (Part I for SARMSB, SAR-SF & SAR-C or Part II for the
depository institution SAR) :
– Employer & occupation information
– Relationship between the suspect & the
filing institution
– Length of the financial relationship
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What instruments or mechanisms
facilitate the suspect
activity/transactions?
Identify & describe the transactions
raising the suspicions of the financial
institution. Examples include:
– Cash deposits and/or withdrawals
– Checks & other monetary instruments
(money orders; traveler’s checks;
cashiers or bank checks)
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When did the criminal or
suspicious activity occur?
– If a one-time occurrence, identify
the date
– If a pattern of activity occurred
over a span of time, state when
the activity first initiated and
then describe the activity during
the duration
– Identify when the activity was
detected
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Where did the suspicious activity
take place?
– Identify the branch/department location
or locations within the institution where
the activity occurred (name of branch,
the street address for each, where in the
branch (ATM, teller, etc.)
– Identify all account numbers & types
of accounts affected by the
transactions/activity
– Indicate if suspect transactions involve
other domestic or international banks &
identify the banks, their locations,
account numbers, etc.
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Why does the institution think the activity
is suspicious?
– First, describe the filer’s type of institution
(i.e., XYZ Bank is a commercial bank with 400
branches located in 5 northeastern states; Send
Money Quick is an international money
transmitter with five offices in metropolitan
Pretend City; We Make U Money is a securities
broker, etc.)
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Why does the institution think the activity or
transaction is suspicious (cont.)?
– Next, describe concisely but fully, why the
institution considers the activity as suspicious
– Be sure to include any relevant information
about suspicious customer activity that the
institution has in its files at the time the SAR is filed
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How did the suspicious activity occur?
– In a concise, accurate and logical manner, describe
how the suspect transaction or pattern of
transactions were completed
– For account activity, provide as completely as
possible an explanation of the cycle of funds
including the source of the funds in the account
& application of those funds
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Additional Thoughts…
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Remember to identify the teller or bank
representative who spoke with customer
Narrate conversation with customer and
response
If gave them CTR brochure, note that &
maintain in file
Remember to save tape if possible
Identify transactions in narrative separately
Closure
Balance
1. The Introduction
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•
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Provide a brief statement of the SAR’s purpose
Generally describe the known or suspected violation
Identify the date of any SARs previously filed on the
subject & the purpose of that SAR
Indicate any internal investigative numbers used by
the filing institution to maintain records of the SAR
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2. The Body
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Provide the relevant facts about all parties facilitating
the suspect activity or transactions
Answers: Who?
• Identify all involved accounts and transactions in
chronological order by date and amount – do not use
or insert tabular objects, tables, or pre-formatted
spread sheets
Answers: What, Where, and When?
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2. The Body (cont.)
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Explain in detail the filer’s position that
the activity or transaction is illegal or
suspicious
Answers: Why?
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Describe the method of operation of the
subject:
Answers: How?
3. The Conclusion
Summarize the report & include:
 Any planned or completed follow-up actions by the
institution
 Names & telephone numbers of persons with
additional information about the reported activity
 Location within the institution where all SARrelated records are maintained
Supporting Documents
•
Requests process
– Phone call
– Fax
– Secured Email (preference)
•
Documents to include
– Mandate by BSA
– Specific requests
• Bank statements, signature cards, videos,
deposit/withdrawal slips
• Electronic responses preferred
Downloads
SAR database
 Monthly
 Formatted for distribution
 Volume
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