When an audit or review catches a mistake or omission on a SAR, can those matters be fixed if and when a 90-day follow up SAR is filed?

No. We often encounter this situation with clients where we are either asked to assist in investigating cases or where we review SARs for accuracy and completeness. In the SAR instructions under “How to Make a Report” #3 it states the filer must make the necessary corrections, tick off Box 1 of the SAR and in Part V (Narrative) explain the changes being made. For example Part V may read:

“This SAR is being filed to correct a previously filed SAR on 04/03/07 in this matter. In the original SAR the Suspect’s home address was listed as 124 Main Street. The Suspect’s home address is actually 421 Main Street.”

Keep in mind that no matter how insignificant the error or omission may appear, any error or omission must be corrected and filed. This requirement is spelled out by FinCEN in its October, 2005 (Issue 9) “The SAR Activity Review: Trends, Tips and Issues” Section 4, page 42 Question #4.

We’ve heard suggestions that it would be sensible for an institution to make the necessary corrections when it files a 90 day review SAR (assuming the suspicious activity occurs). While this view may seem logical (won’t it save FinCEN work if we just file one new SAR?) it is contrary to guidance and expectations. However burdensome it may seem, where an institution believes it needs to file a 90 day review SAR and a corrected SAR, they must be filed separately, even if filed around the same time. The corrected SAR is to address errors or omissions in previous SARs and the 90 day review SAR is to report on-going suspicious activity. FinCEN needs both to ensure its records are accurate and complete.