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Can you summarize 31 CFR 1025.320?
Reports Required To Be Made By Insurance Companies > Reports by insurance companies of suspicious transactions.
Short Summary
This document governs the reporting requirements for insurance companies regarding suspicious transactions involving covered products. Insurance companies are required to file a report with the Financial Crimes Enforcement Network (FinCEN) if they have knowledge or suspicion of a transaction involving at least $5,000 in funds or assets that may be related to illegal activity, money laundering, or criminal activity facilitated through the insurance company. The report, known as a Suspicious Activity Report (SAR), must be filed within 30 calendar days of the initial detection of the suspicious transaction. Insurance companies are also responsible for reporting suspicious transactions conducted through their insurance agents and brokers. The document provides guidelines on filing procedures, retention of records, confidentiality of SARs, and limitations on liability for voluntary disclosures. Non-compliance with the reporting requirements may result in violations of the Bank Secrecy Act and related regulations.
Whom does it apply to?
Insurance companies
What does it govern?
Reports Required To Be Made By Insurance Companies
What are exemptions?
An insurance company is not required to file a SAR to report the submission to it of false or fraudulent information to obtain a policy or make a claim, unless the company has reason to believe that the false or fraudulent submission relates to money laundering or terrorist financing.
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.
Jurisdiction
U.S. Federal Government