Pub. 9 2019 Issue 2

7 ISSUE 2. 2019  Has no business or apparent lawful purpose or is not the type of transaction that the particular customer would normally be expected to engage in, and the filer has no reasonable explana - tion for the transaction after examining the available facts, in- cluding the background and possible purpose of the transaction. You must establish and follow suspicious activity monitoring and reporting systems to fulfill your duties under the BSA. Examiners look for suspicious activity monitoring and reporting systems that include five key components: identification or alert of unusual ac - tivity; managing alerts; SAR decision making; SAR completion and filing; and monitoring, and SAR filing on continuing activity. This boils down to being able to identify unusual customer behavior, deciding whether that behavior is “suspicious activity” that triggers the reporting requirement, and fulfilling the reporting requirement. During an exam you may be asked to show, through policies, pro- cedures, and processes, how your bank takes the necessary steps to address each component and the person(s) or departments responsi- ble for executing those steps. Through your transaction monitoring programs, you will identify many cases of unusual behavior on behalf of your customers. That does not mean that you will file a SAR on each case of unusual behavior. You must file a SAR within 30 days of identifying poten - tially suspicious activity, with the deadline extending to 60 days when you are unable to identify a suspect. “Initial detection” is not when you identify unusual behavior. That is only the first step to identifying suspicious activity. There are many cases where activity can be deemed unusual for a particular customer and generate a red flag, but where the activity, upon further review and investigation, is legitimate and perfectly reasonable. After identifying unusual behavior, you must promptly review the transaction or account to determine whether the unusual behavior suggests that the activity is consistent with one of the types of suspicious activity outlined above. If you determine that the unusual behavior is suspicious activity, the clock starts ticking. There is no specific timetable for your investigation. While the FFIEC has said the investigation must be completed “within a Continued on Page 8 We work alongside your clients’ investment advisor The Advisors’ Trust Company ® Zia Trust, Inc. 602.633.7999 www.ziatrust.com 11811 N Tatum Blvd. Suite 1062, Phoenix, AZ 85028 Independent Corporate Fiduciaries • Pure Fiduciaries - we serve as trustee with no affiliation with banks or investment products. • Retain client’s trusted financial advisor. • Old fashioned service and follow-up. • Serve accounts of all sizes. Over $100,000,000 to under $1,000,000 and everything in between. • All types of assets, investment portfolios, real property, oil and gas, closely held businesses.