FDIC issued a “Guidance on Requests for Information Related to Terrorist Activity” in a Financial Institution Letter (FIL-102-2001) on December 4, 2001. Since the September 11, 2001, events, several “Special Alerts” had been issued regarding terrorist activity. Financial institutions were provided with names on the FBI’s suspected terrorist list. New names were added to the Department of the Treasury’s Office of Foreign Assets Control (OFAC) “Specially Designated Nationals and Blocked Persons” list. Names of individuals and organizations may appear on both lists. In addition, financial institutions are asked to voluntarily report suspicious transactions that may relate to recent terrorist activity against the United States. The purpose of the Guidance is to clarify instructions about such requests for information.
The FDIC noted that it distributes lists published by OFAC to those financial institutions it supervises. The Guidance notes that OFAC administers and enforces economic and trade sanctions under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, for the purpose of imposing controls on transactions and freezing foreign assets under U.S. jurisdiction. OFAC is responsible for issuing regulations that restrict transactions by U.S. persons or entities (including banks) with certain foreign countries, their nationals, “specially designated nationals” or designated foreign terrorist organizations. Violations of these laws can expose financial institutions to substantial penalties. Financial institutions should check records for property that is required to be blocked. Examples: direct or indirect interest in deposit accounts, loans, trust accounts, letters of credit, trade acceptances, negotiable instruments, checks, contracts or any tangible or intangible thing of value.
Note that a “Suspicious Activity Report” (SAR) is not required for matches to the OFAC list; however, financial institutions are instructed to contact OFAC’s hotline at 1-800-540-6322 for reporting requirements or questions about OFAC regulations. It is likely that the OFAC list frequently changes as investigations of terrorist activities continue. The Guidance suggests that financial institutions periodically visit the OFAC Web site for up-to-date information (http://www.treas.gov/ofac). The FDIC Guidance states however, that notwithstanding the use of the Financial Institutions Hotline and/or the suspcious.accounts@ny.frb.org e-mail, financial institutions are required to file a Suspicious Activity Report with the Internal Revenue Service’s Detroit Computing Center as soon as possible in accordance with 12 C.F.R. Part 353. The SAR form, along with the instructions, may be found at http://bsaefiling.fincen.treas.gov/main.html.
Questions about suspicious activity reporting requirements are directed to FDIC’s Special Activities Section at (202) 898-6750. Questions or comments about FDIC Special Alerts directed to alert@fdic.gov. All FDIC Financial Institution Letters published since 1995 may be found on FDIC’s Website (www.fdic.gov) under “News and Events.”