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Can you summarize 12 CFR Part 208, Subpart F?
MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (REGULATION H) > Miscellaneous Requirements
Short Summary
This section of the Code of Federal Regulations, specifically Regulation H issued by the Board of Governors of the Federal Reserve System, governs the filing of Suspicious Activity Reports (SARs) by member banks. The purpose of this section is to ensure that member banks file SARs when they detect known or suspected violations of federal law, suspicious transactions related to money laundering activities, or violations of the Bank Secrecy Act. The section provides definitions for key terms such as FinCEN (Financial Crimes Enforcement Network) and institution-affiliated party. It outlines the circumstances under which member banks are required to file SARs, including insider abuse, violations aggregating $5,000 or more with a suspect identified, violations aggregating $25,000 or more regardless of a potential suspect, and transactions aggregating $5,000 or more involving potential money laundering or violations of the Bank Secrecy Act. The section also specifies the time for reporting, retention of records, notification to the board of directors, and the confidentiality of SARs. Member banks are encouraged to file copies of SARs with state and local law enforcement agencies. There are exceptions for reporting robbery or burglary to law enforcement authorities and reporting lost, missing, counterfeit, or stolen securities under specific regulations. Failure to comply with the filing requirements may result in supervisory action against the member bank and its affiliated parties. The section also provides a safe harbor provision that exempts member banks from liability when making disclosures of possible violations of law or regulation. Overall, this section establishes the framework for member banks to report suspicious activities and maintain compliance with relevant laws and regulations.
Whom does it apply to?
Member banks of the Federal Reserve System
What does it govern?
Filing of Suspicious Activity Reports (SARs) by member banks
What are exemptions?
Exceptions for reporting robbery or burglary to law enforcement authorities and reporting lost, missing, counterfeit, or stolen securities under specific regulations
What are the Penalties?
Supervisory action against the member bank and its affiliated parties
Jurisdiction
U.S. Federal Government