ABA Banking Journal - November/December 2016 - 54


> ABA COMPLIANCE CENTER INBOX
significance of what's there and, for a
very large institution that files hundreds
of SARs a month, it's likely that an
examiner would be critical if the board
wasn't given summaries of the activity.
While the board needs to be informed,
it's also important to take appropriate
steps to ensure that SAR confidentiality
is maintained, and the more people
who see copies of actual SARs filed,
the more difficult that can be.
The purpose of the cited section is
to ensure that the board is informed
about any suspicious activity that
involves the bank. That's done to
be sure that the board can carry
out its responsibility for oversight
of the bank's Bank Secrecy Act
program. However, when you report
to the board, what is most useful is
a summary report of the SARs filed,
indicating the number of SARs,
subjects covered, areas of the bank
impacted and so forth.

One option, depending on the
number of SARs you file during
a month or quarter, would be to
provide a table listing the area of the
bank where the activity originated,
subject involved (generally, but
not by name), possible loss to
the bank (if any) and a very brief
description of the activity and why
it's considered to be suspicious. It
also helps to include information
about anything that affects SAR
investigations and reporting,
including any delays or handicaps
caused by insufficient resources,
since that's an area of focus for the
examiners right now.

In that vein, if there is something
particularly significant or the bank
is looking at a substantial loss, the
board should be notified as soon as
possible. Keep in mind that when you
report to the members of the board,
they can ask questions if they want
additional details.

Of particular interest to the board
(and key to their fiduciary duty) is
to understand how the information
reported in SAR filings could affect
the bank: whether the bank is likely
to suffer a loss, how significant that
loss might be and whether the loss
would be covered by insurance.

Answers are provided by LESLIE CALLAWAY,
CRCM, CAFP, director of compliance outreach
and development; MARK KRUHM, CRCM,
CAFP, senior compliance analyst; and
RHONDA CASTANEDA, CRCM, compliance
analyst, ABA Center for Regulatory
Compliance. Answers do not provide, nor are
they intended to substitute for, professional
legal advice. Answers were current as of the
response date shown at the end of each item.

Finally, as you develop procedures,
you should also map out how you'll
handle any situation that involves a
senior officer of the bank or a board
member. Hopefully, it will never be
needed, but it's good to be prepared.
(Response provided July 2016)

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Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2016

Chairman’s View
Upfront
Picture This
Banking’s ‘Amazon Moment’
Special Report on Innovation and Technology
Building an ‘Internet of Value’
Do You Do What the Data Tell You?
Innovation in the Bank
Core Exercises
Cover Story Pillar of Her Community
Maintaining a Commitment to Ag Customers
Who You Gonna Call?
Anti-Money Laundering
Power Up Profile
Compliance ‘When Can I Call My Customer?’
Risk Management
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
ABA Banking Journal - November/December 2016 - bellyband1
ABA Banking Journal - November/December 2016 - bellyband2
ABA Banking Journal - November/December 2016 - cover1
ABA Banking Journal - November/December 2016 - cover2
ABA Banking Journal - November/December 2016 - 3
ABA Banking Journal - November/December 2016 - 4
ABA Banking Journal - November/December 2016 - 5
ABA Banking Journal - November/December 2016 - 6
ABA Banking Journal - November/December 2016 - 7
ABA Banking Journal - November/December 2016 - Chairman’s View
ABA Banking Journal - November/December 2016 - 9
ABA Banking Journal - November/December 2016 - 10
ABA Banking Journal - November/December 2016 - Upfront
ABA Banking Journal - November/December 2016 - 12
ABA Banking Journal - November/December 2016 - 13
ABA Banking Journal - November/December 2016 - 14
ABA Banking Journal - November/December 2016 - 15
ABA Banking Journal - November/December 2016 - Picture This
ABA Banking Journal - November/December 2016 - 17
ABA Banking Journal - November/December 2016 - 18
ABA Banking Journal - November/December 2016 - 19
ABA Banking Journal - November/December 2016 - Special Report on Innovation and Technology
ABA Banking Journal - November/December 2016 - 21
ABA Banking Journal - November/December 2016 - 22
ABA Banking Journal - November/December 2016 - Building an ‘Internet of Value’
ABA Banking Journal - November/December 2016 - 24
ABA Banking Journal - November/December 2016 - 25
ABA Banking Journal - November/December 2016 - Do You Do What the Data Tell You?
ABA Banking Journal - November/December 2016 - 27
ABA Banking Journal - November/December 2016 - insert1
ABA Banking Journal - November/December 2016 - insert2
ABA Banking Journal - November/December 2016 - Innovation in the Bank
ABA Banking Journal - November/December 2016 - 29
ABA Banking Journal - November/December 2016 - 30
ABA Banking Journal - November/December 2016 - Core Exercises
ABA Banking Journal - November/December 2016 - Cover Story Pillar of Her Community
ABA Banking Journal - November/December 2016 - 33
ABA Banking Journal - November/December 2016 - 34
ABA Banking Journal - November/December 2016 - 35
ABA Banking Journal - November/December 2016 - 36
ABA Banking Journal - November/December 2016 - 37
ABA Banking Journal - November/December 2016 - Maintaining a Commitment to Ag Customers
ABA Banking Journal - November/December 2016 - 39
ABA Banking Journal - November/December 2016 - 40
ABA Banking Journal - November/December 2016 - Who You Gonna Call?
ABA Banking Journal - November/December 2016 - 42
ABA Banking Journal - November/December 2016 - 43
ABA Banking Journal - November/December 2016 - Anti-Money Laundering
ABA Banking Journal - November/December 2016 - 45
ABA Banking Journal - November/December 2016 - 46
ABA Banking Journal - November/December 2016 - Power Up Profile
ABA Banking Journal - November/December 2016 - 48
ABA Banking Journal - November/December 2016 - Compliance ‘When Can I Call My Customer?’
ABA Banking Journal - November/December 2016 - 50
ABA Banking Journal - November/December 2016 - Risk Management
ABA Banking Journal - November/December 2016 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2016 - 53
ABA Banking Journal - November/December 2016 - 54
ABA Banking Journal - November/December 2016 - From the States
ABA Banking Journal - November/December 2016 - 56
ABA Banking Journal - November/December 2016 - Corporate Social Responsibility
ABA Banking Journal - November/December 2016 - Index of Advertisers
ABA Banking Journal - November/December 2016 - cover3
ABA Banking Journal - November/December 2016 - cover4
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