Department of the Treasury
Financial Crimes Enforcement Network
Advisory FIN-2012-A002
Issued: March 2, 2012
Subject:
SAR Confidentiality Reminder for Internal and External Counsel of Financial
Institutions
The
Financial Crimes Enforcement Network (FinCEN) is issuing this Advisory to
remind financial institutions, and in particular, the lawyers that advise them,
of the requirement to maintain the confidentiality of Suspicious Activity
Reports (SARs). FinCEN is concerned that an increasing number of private
parties, who are not authorized to know of the existence of filed SARs, are
seeking SARs from financial institutions for use in civil litigation and other
matters. Financial institutions, and their current and former directors,
officers, employees, agents, and contractors, are prohibited from disclosing
SARs, or any information that would reveal the existence of a SAR.1 FinCEN
recognizes that an escalation in the number of requests for use of SARs in
private litigation may increase the likelihood of an unauthorized disclosure of
a SAR. This is especially true when external counsel is unfamiliar with the
regulations covering SAR confidentiality. Financial institutions, and their
current and former directors, officers, employees, agents, and contractors
could be subject to civil and criminal penalties for the unauthorized
disclosure of a SAR.
Guidance
on Maintaining SAR Confidentiality
FinCEN reminds
financial institutions to be vigilant in maintaining the confidentiality of
SARs *****READ MORE
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