• Final Rule Strengthens SAR Confidentiality; Guidance Provides for Affiliate Sharing

The Financial Crimes Enforcement Network (FinCEN) released a final rule on November 23, along with an advisory and guidance documents, that together clarify and strengthen the scope of Suspicious Activity Report (SAR) confidentiality, and expand the ability of certain financial institutions to share SAR information with most affiliates.

Notes: The final rule clarifies the scope of the statutory prohibition against the disclosure by a financial institution or by a government agency of a SAR or any information that would reveal the existence of a SAR. FinCEN’s previous guidance permitted the sharing of SARs with head offices and parent companies. Among other changes, the new guidance allows for the sharing of a SAR with a domestic affiliate that is subject to a SAR rule and is under common ownership.

  • SEC Proposes Whistleblower Award Program Under the Dodd-Frank Act

The Securities and Exchange Commission on November 3 issued a proposed rule under the Dodd-Frank Act to create a whistleblower program to reward individuals who provide the SEC with high-quality tips that lead to successful enforcement actions. Comments on the proposed rule are due by December 17.

Notes: To be considered for an award, a whistleblower must voluntarily provide the SEC with original information about a violation of the federal securities laws that leads to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million. back to top