[Federal Register Volume 60, Number 136 (Monday, July 17, 1995)]
[Proposed Rules]
[Pages 36366-36370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17485]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 60, No. 136 / Monday, July 17, 1995 /
Proposed Rules
[[Page 36366]]
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 563
[No. 95-145]
RIN 1550-AA62
Operations--Suspicious Activity Reports and Other Reports and
Statements
AGENCY: Office of Thrift Supervision, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Office of Thrift Supervision (OTS) is proposing to amend
its regulations to implement a new interagency suspicious activity
referral process and to update and clarify the underlying reporting
regulation. The proposal reduces substantially the burden on savings
associations and service corporations in reporting suspicious
activities while enhancing access to such information by the Federal
law enforcement agencies, the Federal financial institutions
supervisory agencies, and the Department of the Treasury.
DATES: Comments must be received by September 15, 1995.
ADDRESSES: Comments should be sent to: Chief, Dissemination Branch,
Records Management and Information Policy, Office of Thrift
Supervision, 1700 G Street, NW., Washington, DC 20552, Attention Docket
No. 95-145. These submissions may be hand-delivered to 1700 G Street,
NW., from 9:00 A.M. to 5:00 P.M. on business days; they may be sent by
facsimile transmission to FAX Number (202) 906-7755. Comments will be
available for inspection at 1700 G Street, NW., from 1:00 P.M. until
4:00 P.M. on business days.
FOR FURTHER INFORMATION CONTACT: Richard Stearns, Deputy Chief Counsel,
Enforcement Division, (202) 906-7966, or Karen Osterloh Counsel
(Banking and Finance), Regulations and Legislation Division, (202) 906-
6639, Chief Counsel's Office, Office of Thrift Supervision, 1700 G
Street, NW., Washington DC 20552.
SUPPLEMENTARY INFORMATION:
Background
The Federal financial institutions supervisory agencies (Agencies)
1 and the Department of the Treasury (Treasury) 2 are
responsible for ensuring that financial institutions apprise Federal
law enforcement authorities of any known or suspected violation of a
Federal criminal statute and of any suspicious financial transaction.
Suspicious financial transactions (which will be the subject of
regulations and other guidance to be issued by Treasury) can include
transactions that a savings association or service corporation suspects
involved funds derived from illicit activities, were conducted for the
purpose of hiding or disguising funds from illicit activity, otherwise
violated the money laundering statutes,3 were potentially designed
to evade the reporting or recordkeeping requirements of the Bank
Secrecy Act (the BSA),4 and transactions that the savings
association or service corporation believes were suspicious for any
other reason.
\1\ The Federal financial institutions supervisory agencies are
the OTS, the Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, and the National Credit Union Administration.
\2\ Through its Financial Crimes Enforcement Network (FinCEN).
\3\ 18 U.S.C. 1956 and 1957.
\4\ 31 U.S.C. 5311 through 5330.
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Fraud, abusive insider transactions, check kiting schemes, money
laundering, and other crimes can pose serious threats to a financial
institution's continued viability and, if unchecked, can undermine the
public confidence in the nation's financial industry. The Agencies and
Federal law enforcement agencies need to receive timely and detailed
information regarding suspected criminal activity to determine whether
investigations, administrative actions, or criminal prosecutions are
warranted.
An interagency Bank Fraud Working Group (BFWG), consisting of
representatives from many Federal agencies, including the Agencies and
law enforcement agencies, was formed in 1984. The BFWG addresses
substantive issues, promotes cooperation among the Agencies and Federal
and State law enforcement agencies, and improves the Federal
government's response to white collar crime in financial institutions.
Today's revisions to this regulation and the reporting requirements are
being made under the auspices of the BFWG.
Suspicious Activity Report
The Agencies have been working on a project to improve the criminal
referral process, to reduce unnecessary reporting burdens on financial
institutions, and to eliminate confusion associated with the current
duplicative reporting of suspicious financial transactions in criminal
referral forms and currency transaction reports (CTRs).
Contemporaneously, Treasury analyzed the need to implement the
procedures for reporting suspicious financial transactions by financial
organizations following the enactment of the Annuzio-Wylie Anti-Money
Laundering Act of 1992. As a result of these reviews, the Agencies and
Treasury approved the development of a new referral process that
includes suspicious financial transaction reporting.
To implement the reporting process, and to reduce unnecessary
burdens associated with these various reporting requirements, the
Agencies and FinCEN developed a new report form for reporting known or
suspected Federal criminal law violations and suspicious financial
transactions. The new form is designated the Suspicious Activity Report
(SAR).5 The SAR is a simplified and shortened version of its
predecessors.
\5\ The reporting requirements contained in the SAR will be
submitted to the Office of Management and Budget for review in
accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3504(h)) and the OTS will seek comments on the SAR in a separate
notice.
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The new referral process and the SAR reduce the burden on savings
associations and service corporations for reporting known or suspected
violations and suspicious financial transactions. The agencies
anticipate that the new process will be instituted by October, 1995.
Proposal
The OTS proposes to revise 12 CFR 563.180 by updating and
clarifying the current rule governing the filing of criminal referral
reports, implementing the new SAR, and eliminating current
[[Page 36367]]
confusing and overly burdensome reporting requirements. This action
should improve reporting of known or suspected violations and
suspicious financial transactions relating to Federally insured
financial institutions while providing uniform data for entry into the
new interagency computer database. The OTS expects that each of the
other Agencies will be making substantially similar changes
contemporaneously.
The proposed changes to the current OTS rules are discussed below.
The principal changes include: (1) raising the mandatory reporting
thresholds for criminal offenses, thereby reducing unnecessary
reporting burdens; (2) requiring the filing of only one form with a
single repository, rather than multiple filings to several Federal law
enforcement agencies and the Agencies, thereby further reducing
reporting burdens; and (3) clarifying the criminal referral and
suspicious financial transaction reporting requirements of the Agencies
and Treasury, thereby eliminating duplicative referrals.
Section 563.180(d)(1) Purpose and Scope
The proposal clarifies the scope of the current rule. Under the
proposal, the SAR will replace the various criminal referral forms that
the Agencies currently require institutions to file. The purpose of the
proposed rule is to ensure that savings associations or service
corporations file a SAR when they detect known or suspected violations
of Federal criminal law or suspicious financial transactions.6
\6\ As noted above, there has been some confusion regarding
filing of criminal referrals and CTRs for suspicious cash
transactions. The BSA requires all financial institutions to file
CTRs in accordance with Treasury's implementing regulations (31 CFR
part 103). Part 103 requires financial institutions to file a CTR
whenever a currency transaction exceeds $10,000. If a currency
transaction exceeds $10,000 and is suspicious, the institution,
under these new requirements, will file both a CTR (reporting the
currency transaction) and a SAR (reporting the suspicious criminal
aspect of the transaction). If a currency transaction equals or is
below $10,000 but is suspicious, the institution will only file a
SAR.
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The proposed rule continues to require reporting by savings
associations and by service corporations. It does not, however, impose
a separate reporting obligation on operating subsidiaries established
by savings associations. OTS regulations provide that all Federal laws
and regulations governing the operation of savings associations apply
to operating subsidiaries, unless otherwise provided by statute,
regulations or policies of the OTS. The OTS general policy is to
consolidate regulatory requirements for the operating subsidiary with
the parent. Accordingly, the reporting obligation of parent savings
associations under Sec. 563.180 will be deemed to include the duty to
report events or conduct occurring at the operating subsidiary level,
as well as the parent level.
Under the current regulation, savings association holding companies
are not required to file reports. Holding companies are encouraged to
do so when actions have a substantial impact on the depository
institutions that they own. The OTS solicits comment on whether to
amend the rule so that it expressly requires savings association
holding companies to file SARs regarding known or suspected criminal
violations or suspicious financial transactions that affect their
depository institution subsidiaries.
Section 563.180(d)(2) Definitions
Proposed Sec. 563.180(d)(2) defines the following terms:
``FinCEN,'' ``institution-affiliated party,'' ``instructions,'' ``known
or suspected violation,'' and ``SAR.'' The definitions should make the
rule easier to interpret and apply.
In particular, the definition of ``known or suspected violation''
refers to any matter for which a savings association or service
corporation has a basis to believe that a violation of any Federal
criminal statute (including a pattern of criminal violations) has
occurred or has been attempted, is occurring, or may occur, coupled
with a basis to believe that a savings association or service
corporation was an actual or potential victim of the criminal violation
or was involved in or was used to facilitate the criminal violation.
This definition supplants the definition of suspected crimes, the
illustrative listing of crimes requiring reporting, and other
descriptions of known or suspected crimes in the existing rule at 12
CFR 563.180(d) (1) and (2) (1995).
Section 563.180(d)(3) Reports Required
The proposal clarifies the categories of violations that are
subject to the reporting obligation. In addition, the proposal reduces
the regulatory burden on savings associations and service corporations
by increasing applicable dollar thresholds for two categories of
violations, and by eliminating the requirement for duplicative filings
with multiple Federal agencies.
Proposed Sec. 563.180(d)(3)(i) requires a savings association or
service corporation to file a SAR, regardless of the dollar amount
involved, whenever it has a substantial basis for believing that a
director, officer, employee, agent or other institution-affiliated
party (as defined in the regulation, which cross references section
3(u) of the FDIA) committed or aided in the commission of a Federal
crime. This provision is substantially identical to the existing rule
at 12 CFR 563.180(d)(1)(i)(1995), with one exception. The existing rule
applies to violations involving ``affiliated parties,'' as defined in
12 CFR 561.5(1995). Unfortunately, the cited definition is both too
narrow and too broad. For example, ``affiliated persons'' under 12 CFR
561.5 does not include all shareholders who may participate in the
conduct of the affairs of the institution, but does include members of
a director's or officer's immediate family who have no connection to
the institution. The OTS believes that the proposed rule describes
relevant insiders with greater precision.
OTS's current rules further require savings associations and
service corporations to report known or suspected criminal acts that
involve actual or anticipated losses of: (1) $1,000 or more where there
is a basis for identifying a non-insider suspect; or (2) $5,000 or more
regardless of whether a suspect has been identified.7 The proposed
rule at Secs. 563.180(d)(3) (ii) and (iii) would reduce this reporting
burden by increasing the $1,000 and $5,000 thresholds to $5,000 and
$25,000, respectively. Moreover, the proposed rule clarifies that
threshold amounts are based on actual or potential losses to the
savings association or service corporation, without regard to possible
reimbursement or recovery.
\7\ 12 CFR 563.180(d)(1) (ii) and (iii) (1995).
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Proposed Sec. 563.180(d)(3)(iv) requires a savings association or
service corporation to report any financial transaction, regardless of
the dollar amount if: (1) the institution suspects the transaction
involved funds derived from illicit activity, was conducted for the
purpose of hiding or disguising funds from illicit activity, or in any
way violated the money laundering statutes; 8 (2) the institution
suspects the transaction was potentially designed to evade the
reporting or recordkeeping requirements of the BSA; 9 or (3) the
institution believes the transaction to be suspicious for any reason.
This revision makes minor clarifying changes to the existing
requirements at 12 CFR 563.180(d)(1)(iv) (1995).
\8\ 18 U.S.C. 1956 and 1957.
\9\ 31 U.S.C. 5311 through 5330.
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The current rules require savings associations and service
corporations to file a criminal referral report with
[[Page 36368]]
appropriate Federal law enforcement authorities. Because this process
results in multiple filings with several agencies, the Agencies propose
to reduce the filing burden by permitting institutions to file a single
SAR at one location. Accordingly, under proposed Sec. 563.180(d)(3), a
savings association or service corporation will file a SAR with all
appropriate Federal law enforcement agencies by sending a single copy
of the SAR to the FinCEN, whose address will be printed on the SAR.
FinCEN will input the information contained on the SARs into a
newly created database that FinCEN will maintain. This process will
fulfill the regulatory requirement that a savings association or
service corporation refer any known or suspected criminal violation to
appropriate Federal law enforcement agencies. The database will enhance
Federal law enforcement and supervisory agencies' ability to track,
investigate and prosecute individuals suspected of violating Federal
criminal law. This change will ensure that all SARs are placed in the
database at FinCEN and that the information is made available on
computer to the appropriate law enforcement and supervisory agencies as
quickly as possible.
To further reduce the reporting burden, the Agencies are modifying
the manner in which financial institutions file a SAR. In following the
Instructions on a SAR, a savings association or service corporation may
file the referral form in several ways, including submitting an
original form or a photocopy, and filing a SAR by magnetic means, such
as by a computer disk.10 In the future, the OTS and the other
Agencies anticipate that a financial institution will be able to file a
SAR electronically.
\10\ FinCEN, however, will not be able to receive SARs by
facsimile machine.
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The Agencies, working with FinCEN, are developing computer software
to assist financial institutions in preparing and filing SARs. The
software will allow an institution to complete a SAR, to save the SAR
on its computers, and to print a hard copy of the SAR for its own
records. The computer software will also enable an institution to file
a SAR using various forms of magnetic media, such as computer disk or
magnetic tape. The OTS will make the software available to all savings
associations and service corporations. A savings association or service
corporation, of course, may complete and file a SAR using printed forms
without using this software, if it so desires. The Instructions to the
SAR will address new permissible filing methods as the methods are
developed.
Section 563.180(d)(4) Service Corporations
When a service corporation must file a report under the current
rule, the required filing may be made either by the service corporation
or by a saving association that wholly or partially owns the service
corporation. This provision is retained in the proposed rule at 12 CFR
563.180(d)(4).
Section 563.180(d)(5) Time for Reporting
Proposed Sec. 563.180(d)(5) requires a savings association or
service corporation to file the SAR within 30 calendar days after the
date of detection of the act triggering the reporting requirement. If
no suspect is identified on that date, the savings association or
service corporation may delay the filing of a SAR for an additional 30
calendar days after the identification of a suspect. Filings, however,
may not be delayed for more than 60 calendar days after detection. The
proposal substantially modifies the current regulation at
Sec. 563.180(d)(2) which requires the savings association or service
corporation to file within 14 business days after discovery of the
activity.
Section 563.180(d)(6) Reports to State and Local Authorities
The proposed rule includes a new provision encouraging savings
associations and service corporations to file SARs with State and local
law enforcement agencies where appropriate.
Section 563.180(d)(7) Retention of Records
Existing OTS rules require savings associations and service
corporations to retain a copy of the criminal referral report and
related records for a period of ten years.11 This requirement is
retained in the proposed rules at Sec. 563.180(d)(7).
\11\ 12 CFR 563.180(d)(5) (1995). This time frame corresponds
with the statute of limitations for most Federal criminal statutes
involving financial institutions.
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The current instructions to the criminal referral form require
savings associations and service corporations to submit copies of all
related documentation when a criminal referral is filed. The new SAR
reduces the regulatory burdens on the industry by eliminating this
requirement altogether. Instead, the proposal requires that the
documentation be identified and treated as filed with the SAR and that
the savings association or service corporation maintain the
documentation, along with a copy of the SAR, for ten years from the
submission date. This approach ensures that Federal law enforcement
agencies and the Agencies, upon request, have access to any
documentation necessary to prosecute a violation or pursue
administrative action by requiring the preservation of the underlying
documentation for ten years.
Section 563.180(d)(8) Exemptions
The proposed rule would exempt robberies and burglaries and
attempted robberies and burglaries that are reported to the appropriate
local law enforcement authorities. This exemption is substantially
similar to the existing exemption at 12 CFR 563.180(d)(2)(1995).
Section 563.180(d)(9) Notification of the Board of Directors
Proposed Sec. 563.180(d)(9) requires the management of a savings
association to promptly notify the board of directors (or a committee
of directors or executive officers designated by the board to receive
notice) whenever the savings association or a service corporation in
which the savings association has an ownership interest has filed a
SAR. Where an executive officer or director is a suspect, the proposal
requires management to notify the entire board of directors, except the
suspect.
This proposed rule generally incorporates the requirements of the
existing rules at Sec. 563.180(d)(4) (1995), but includes several
modifications designed to provide savings associations with greater
flexibility. These modifications: (1) permit notification to a
designated committee in lieu of the entire board; (2) require
``prompt'' notification, rather than notification at the first
regularly scheduled board meeting after the filing of the SAR; and (3)
assign notification responsibility to management of the savings
association rather than the chief executive officer. The OTS expects
each savings association to maintain appropriate mechanisms to ensure
that the board of directors will be informed promptly of SAR filings.
Section 563.180(d)(10) Compliance
The proposed rule includes a new provision stating that the failure
to file a SAR in accordance with the regulation and the Instructions
may result in supervisory actions, including enforcement actions.
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Section 563.180(d)(11) Obtaining the SAR
Proposed Sec. 563.180(d)(11) states that savings associations and
service corporations may obtain the SAR form from the appropriate OTS
Regional Office at the address listed in 12 CFR 516.1(b) (1995). The
current rule does not contain a comparable instruction.
Section 563.180(d)(12) Confidentiality of SARs
The proposed rule contains a new provision preserving the
confidentiality of SARs and the information contained in SARs.
Comments
The OTS invites public comment on all aspects of this proposal.
Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act, the
OTS hereby certifies that this proposed rule will not have a
significant economic impact on a substantial number of small entities.
This proposal primarily reorganizes the process for reporting crimes
and suspicious activities and has no material impact on savings
associations and service corporations, regardless of size. Accordingly,
a regulatory flexibility analysis is not required.
Executive Order 12866
The OTS has determined that this document is not a significant
regulatory action under Executive Order 12866.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L.
104-4 (signed into law on March 22, 1995) requires that an agency
prepare a budgetary impact statement before promulgating a rule that
includes a Federal mandate that may result in expenditure by State,
local, and tribal governments, in the aggregate, or by the private
sector of $100 million or more in one year. If the budgetary impact
statement is required, section 205 of the Act also requires an agency
to identify and consider a reasonable number of regulatory alternatives
before promulgating a rule. This proposal reorganizes the process for
reporting crimes and suspicious activities by savings associations and
service corporations to Federal agencies. The OTS has determined that
the final rule will not result in expenditure by State, local, or
tribal governments or by the private sector of more than $100 million.
Accordingly, the Unfunded Mandates Reform Act does not apply.
List of Subjects in 12 CFR Part 563
Accounting, Advertising, Crime, Currency, Flood insurance,
Investments, Reporting and recordkeeping requirements, Savings
associations, Securities, Surety bonds.
Authority and Issuance
For the reasons set out in the preamble, part 563 of chapter V of
title 12 of the Code of Federal Regulations is proposed to be amended
as set forth below:
SUBCHAPTER D--REGULATIONS APPLICABLE TO ALL SAVINGS ASSOCIATIONS
PART 563--OPERATIONS
1. The authority citation for part 563 continues to read as
follows:
Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468,
1817, 1828, 3806; 42 U.S.C. 4012a, 4104a, 4104b, 4106, 4128.
2. Section 563.180 is amended by revising the section heading and
paragraph (d) to read as follows:
Sec. 563.180 Suspicious Activity Reports and other reports and
statements.
* * * * *
(d) Suspicious Activity Reports.--(1) Purpose and scope. This
paragraph (d) ensures that savings associations and service
corporations file a Suspicious Activity Report when they detect a known
or suspected violation or a suspicious transaction.
(2) Definitions. For the purposes of this paragraph (d):
(i) FinCEN means the Financial Crimes Enforcement Network of the
Department of the Treasury.
(ii) Institution-affiliated party means any institution-affiliated
party as that term is defined in sections 3(u) and 8(b)(8) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(u) and 1818(b)(8)).
(iii) Instructions means the instructions on the SAR.
(iv) Known or suspected violation means any matter for which there
is a basis to believe that a violation of a Federal criminal statute
(including a pattern of criminal violations) has occurred or has been
attempted, is occurring, or may occur, and there is a basis to believe
that a savings association or service corporation was an actual or
potential victim of the criminal violation or was involved in or was
used to facilitate the criminal violation.
(v) SAR means a Suspicious Activity Report.
(3) SARs required. A savings association or service corporation
shall file a SAR with the appropriate Federal law enforcement agencies
and the Department of the Treasury, in accordance with the
Instructions, by sending a completed SAR to FinCEN, in the following
circumstances:
(i) Whenever the savings association or service corporation detects
a known or suspected violation of Federal criminal law and has a
substantial basis to believe that one of its directors, officers,
employees, agents, or other institution-affiliated parties committed or
aided in the commission of the violation;
(ii) Whenever the savings association or service corporation
detects a known or suspected violation of Federal criminal law, there
is an actual or potential loss to the savings association or service
corporation (before reimbursement or recovery) aggregating $5,000 or
more, and the savings association or service corporation has a
substantial basis for identifying a possible suspect or group of
suspects, where none of the suspects are included in paragraph
(d)(3)(i) of this section;
(iii) Whenever the savings association or service corporation
detects a known or suspected violation of Federal criminal law, there
is an actual or potential loss to the savings association or service
corporation (before reimbursement or recovery) aggregating $25,000 or
more, and the savings association or service corporation has no
substantial basis for identifying a possible suspect or group of
suspects; or
(iv) Whenever a financial transaction is conducted, or attempted,
at the savings association or service corporation and:
(A) The savings association or service corporation suspects that
the transaction involved funds derived from illicit activity, was
conducted for the purpose of hiding or disguising funds from illicit
activity, or in any way violated the money laundering statutes (18
U.S.C. 1956 and 1957);
(B) The savings association or service corporation suspects that
the transaction was potentially designed to evade the reporting or
recordkeeping requirements of the Bank Secrecy Act (31 U.S.C. 5311
through 5330) or regulations issued thereunder; or
(C) The savings association or service corporation believes that
the transaction was suspicious for any reason.
(4) Service corporations. When a service corporation is required to
file a SAR under paragraph (d)(3) of this section, either the service
corporation or a savings association that wholly or partially owns the
service corporation, may file the SAR.
(5) Time for reporting.--(i) Generally. A savings association or
service corporation shall file the SAR required
[[Page 36370]]
by paragraph (d)(3) of this section within 30 calendar days after the
date of initial detection of an act described in paragraph (d)(3) of
this section. In situations involving violations that require immediate
attention, such as when a reportable violation is on-going, the savings
association or service corporation shall immediately notify, by
telephone, the appropriate law enforcement authority in addition to
filing a timely SAR.
(ii) No suspect identified. If no suspect was identified on the
date of detection of an act described in paragraph (d)(3) of this
section, the savings association or service corporation may delay
filing the SAR for an additional 30 calendar days after the
identification of a suspect, but in no case may savings association or
service corporation delay filing a SAR for more than 60 calendar days
after the date of detection of an act described in paragraph (d)(3) of
this section.
(6) Reports to State and local authorities. A savings association
or service corporation is encouraged to file a copy of the SAR with
State and local law enforcement agencies where appropriate.
(7) Retention of records. A savings association or service
corporation shall maintain a copy of any SAR filed and the original of
any related documentation for a period of ten years from the date of
filing the SAR, unless the OTS informs the savings association or
service corporation in writing that it may discard the materials
sooner. A savings association or service corporation must make all
supporting documentation available to appropriate law enforcement
agencies upon request. Supporting documentation shall be identified and
treated as filed with the SAR.
(8) Exemptions. A savings association or service corporation need
not file a SAR for a robbery or burglary committed or attempted that is
reported to appropriate law enforcement authorities.
(9) Notification to board of directors.--(i) Generally. Whenever a
savings association (or a service corporation in which the savings
association has an ownership interest) files a SAR pursuant to this
paragraph (d), the management of the savings association shall promptly
notify its board of directors or a committee of directors or executive
officers designated by the board of directors to receive such notice.
(ii) Suspect is a director or officer. If the savings association
or service corporation files a SAR pursuant to paragraph (d)(3) of this
section and the suspect is a director or executive officer of the
savings association, the savings association must not notify the
suspect in accordance with 31 U.S.C. 5318, but must notify all
directors who are not suspects.
(10) Compliance. Failure to file a SAR in accordance with this
paragraph (d) and the Instructions may subject the savings association
or service corporation, its directors, officers, employees, agents, or
other institution-affiliated parties to supervisory actions including
enforcement actions.
(11) Obtaining SARs. A savings association or service corporation
may obtain SARs and the Instructions from the appropriate OTS Regional
Office listed in 12 CFR 516.1(b).
(12) Confidentiality of SARs. SARs are confidential. Any person
subpoenaed or otherwise requested to disclose a SAR or the information
contained in a SAR shall decline to produce the information citing
these regulations, applicable law (e.g., 31 U.S.C. 5318(g)), or both.
* * * * *
Dated: July 12, 1995.
By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 95-17485 Filed 7-14-95; 8:45 am]
BILLING CODE 6720-01-P
