FDIC and FinCEN float change in SAR requirements to exempt “innovative solutions”
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved a notice of proposed rulemaking that would amend the agency’s Suspicious Activity Report (SAR) regulation. The proposed regulation would permit the FDIC to issue additional, case-by-case, exemptions from SAR filing requirements to FDIC-supervised institutions.
The FDIC’s current SAR regulation allows exemptions for physical crimes (robberies and burglaries) and lost, missing, counterfeit, or stolen securities. The proposed regulation would make it possible for the FDIC to grant exemptions, in conjunction with the Financial Crimes Enforcement Network (FinCEN), to FDIC-supervised institutions that develop innovative solutions to meet Bank Secrecy Act requirements more efficiently and effectively.
The FDIC expects the amendments to the SAR regulation will reduce regulatory burden on financial institutions and encourage technological innovation in the banking sector.
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