How long does a bank have to file a SAR, and when does the clock start?

A bank must file a SAR no later than 30 calendar days after the date of initial detection of facts that may constitute a basis for filing. If no suspect was identified on that date, the bank may take up to an additional 30 calendar days to identify one, but never more than 60 calendar days after initial detection (31 CFR 1020.320(b)(3)).

What the rule says:

• The 30 days run from initial detection by the bank of facts that may constitute a basis for filing. The extra 30 days is available only where no suspect had been identified on the date of detection (31 CFR 1020.320(b)(3)).
• Separate from the deadline: where a violation requires immediate attention, such as an ongoing money laundering scheme, the bank must also immediately notify an appropriate law enforcement authority by telephone, in addition to filing a timely SAR (31 CFR 1020.320(b)(3)).

What the guidance says (FinCEN guidance, not a regulation; SAR Activity Review, Issue 14, Oct. 2008):

• "Initial detection" is not the moment a transaction is highlighted for review. A monitoring alert or system-generated report does not start the clock.
• The period starts only after an appropriate review is done and a determination is made that the activity is suspicious under the SAR regulations.
• Where review is tiered, the date of initial detection is when the investigator, after appropriate review, determines the activity is suspicious, not when an analyst refers the matter on.
• A need to review activity does not by itself mean a SAR is required, even if a reasonable review takes a long time. But reviews should be completed in a reasonable period of time.

What to do:

• Record the alert date, who reviewed, each escalation, and the date and reasons for the determination that the activity is suspicious.
• Keep reviews moving. Do not treat an alert as day zero, and do not let a case sit.
• Note whether a suspect was identified on the detection date, since that decides whether the extra 30 days is available.

Sources

1. 31 CFR § 1020.320(b)(3): https://www.law.cornell.edu/cfr/text/31/1020.320
2. FinCEN, The SAR Activity Review – Trends, Tips & Issues, Issue 14 (Oct. 2008): https://www.fincen.gov/system/files/shared/sar_tti_14.pdf
3. 31 CFR 1020.320 (eCFR): https://www.ecfr.gov/current/title-31/section-1020.320

This answer is general information, not legal advice. Forteris is not a law firm.