Magazine article American Banker

New Method of Reporting Suspicious Transactions to Be Delayed, Fed Says

Magazine article American Banker

New Method of Reporting Suspicious Transactions to Be Delayed, Fed Says

Article excerpt

The new Suspicious Activity Report - a filing banks will use to alert federal officials to questionable transactions - will not be ready on Oct. 1, as expected.

Federal Reserve Board officials said the report is still being developed and will not be available until December.

The three-page report will replace the Criminal Referral Form and a box on Currency Transaction Reports that banks have been checking and backing up with documentation explaining the suspicious activity.

When a new currency report - without the box - takes effect on Oct. 1, banks will use the current Criminal Referral Form to report suspected crimes, according to the Fed's deputy associate director for enforcement, Herbert A. Biern.

In a Sept. 6 letter to supervisors at the Fed's 12 regional banks, Mr. Biern said, "Banking organizations should also be advised that because they can no longer report suspicious currency transactions on the Treasury's CTR form as of Oct. 1, 1995, they should use the current criminal referral form to report suspicious financial transactions that would have previously been reported by checking the suspicious box on the old CTR form."

The suspicious activity forms are designed to centralize the reporting process and ease banks' paperwork burdens by allowing banks to send the reports - on paper or through a computer - to the Treasury Department's Financial Crimes Enforcement Network. Previously, banks had to send copies to as many as seven places.

The government also is raising the threshold for reporting a suspicious activity from $1,000 to $5,000 if the bank has a "substantial basis" for identifying the suspect, and from $5,000 to $25,000 if there is no basis for the report. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.