X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-Due to a lack of adequate response to a previous report, Treasury’s Office of Inspector General said that it delved further into the problems with the Financial Crimes Enforcement Network’s monitoring of data quality problems for suspicious activity reports. “What progress had been made in addressing our prior report consisted largely of additional outreach with financial institutions as to the proper filing of SARs,” Treasury’s OIG stated in its report. “Little if any progress had been made to enhance internal controls to detect and prevent SARs with data quality problems from being entered onto the automated data system.” Because FinCEN, a bureau of Treasury, has failed to properly monitor SAR data quality problems in OIG’s eyes, the office studied 406 SARs filed by depository institutions and money services businesses over one year to look deeper into the problem for solutions. Under the Bank Secrecy Act, financial institutions, including credit unions, must file suspicious activity reports under certain circumstances to inform law enforcement of possible problems. However, completion and consistency have been an issue. Of the 406 SARs studied, 251 or 62% had one or more data quality problems-missing, incomplete, inappropriate, and/or inconsistent information-in fields considered “critical” by law enforcement. From this sampling, OIG extrapolated that between 227,000 and 267,000 of the 416,000 SARs filed during the audit period had similar errors. These errors did not include those associated with duplicate SARS filed. Observations of OIG included: * Though MSBs had more data quality problems than depository institutions, both had rates in excess of 55%. * Electronic SARs were not more accurate than paper-based SARS. * The most frequent data quality problem was missing data that law enforcement would use to identify someone. * A common MSB SAR problem was lack of or inadequate narrative description. Problem SARs also took longer to enter the automated data system than proper SAR filings, OIG found. The full report is available at http://www.treas.gov/inspector-general/audit-reports/2005/by-date.shtml listed under March 23. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.