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Can you summarize 31 CFR 1020.320?
Reports Required To Be Made By Banks > Reports by banks of suspicious transactions.
Short Summary
This document, part of the Code of Federal Regulations, outlines the rules for banks regarding the reporting of suspicious transactions. Every bank is required to file a report with the Treasury Department for any suspicious transaction that may indicate a possible violation of law or regulation. The transaction must involve or aggregate at least $5,000 in funds or other assets, and the bank must know, suspect, or have reason to suspect that the transaction involves funds derived from illegal activities, is designed to evade requirements of the Bank Secrecy Act, or has no apparent lawful purpose. The bank must file a Suspicious Activity Report (SAR) within 30 calendar days of detecting the transaction, and may delay filing for an additional 30 calendar days to identify a suspect. The bank is also required to maintain a copy of the SAR and supporting documentation for five years. The SAR and any information that would reveal its existence are confidential and should not be disclosed, except as authorized. Non-compliance with these reporting requirements may result in penalties and violations of the Bank Secrecy Act and related regulations.
Whom does it apply to?
Every bank
What does it govern?
Reports Required To Be Made By Banks
What are exemptions?
A bank is not required to file a SAR for a robbery or burglary committed or attempted that is reported to appropriate law enforcement authorities, or for lost, missing, counterfeit, or stolen securities with respect to which the bank files a report pursuant to the reporting requirements of 17 CFR 240.17f1.
What are the Penalties?
Failure to satisfy the requirements of this section may be a violation of the Bank Secrecy Act and of this chapter. Such failure may also violate provisions of title 12 of the Code of Federal Regulations.
Jurisdiction
U.S. Federal Government