JUST HOW SAFE IS THE PROTECTION PROVIDED TO THOSE FILING A SAR IN THE US?

On 4th September, Ballard Spahr published a briefing looking at the protection offered against civil or criminal comeback against those who file a SAR in good faith, focussing on a recent court case in Massachusetts.  In the case, AER Advisors Inc filed a complaint alleging that Fidelity Brokerage Services LLC falsely implicated them in a SAR, a SAR that was filed in bad faith.  As a result, AER claimed it was subject to multiple investigations by state and federal agencies.  Fidelity sought to dismiss the complaint, arguing that it had complete immunity from any liability for any SAR it filed.  The court agreed.  Apparently, the “good faith” is not a given though Congress is contemplating inserting a provision into the law requiring good faith in submitting a SAR.

https://www.moneylaunderingwatchblog.com/2018/09/just-how-safe-is-the-sar-safe-harbor-provision/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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