WASHINGTON — Three lawmakers, including the chairman and rankingmember of the House Financial Services Committee have sent a letterto the Comptroller of the U.S. seeking a GovernmentalAccountability Office study of the Treasury Department's FinancialCrimes Enforcement Network and the use of Suspicious ActivityReports and Currency Transaction Reports.
|The July 19 letter from Chairman Barney Frank (D-Mass), SpencerBachus (R-Ala) and Rep. Steve Lynch (D-Mass) includes what theletter called the SAR process.
|“According to FinCEN, over one million SARs were filed in 2006,and depository institutions and firms in the securities and futuresindustries accounted for over half of them,” the lawmakerswrote.
|“At the May hearing, a number of banking industry witnessescommented that they lacked clear guidance on what law enforcementis looking for and finds useful in these reports, and noted thatthe industry engages in 'defensive' SAR filings, or erring on theside of filing a SAR even if there is doubt about its usefulness,in order to avoid the possibility of being penalized by federalfinancial institution regulators,” the lawmakers wrote.
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