What protection does an MSB and its employees have against being sued by a customer for filing a SAR?
Federal law (31 U.S.C. 5318(g)(3)) provides a “safe harbor” or protection from civil liability to financial institutions and their directors, officers, employees or agents that report suspicious activity to FinCEN or appropriate law enforcement or supervisory agencies. A financial institution is prohibited from notifying any person involved in the transaction that the transaction was reported on a SAR (31 USC 5318(g)(2)). If you receive a subpoena for a SAR, or a request of any kind to produce a copy of a SAR (other than a request by FinCEN, or an appropriate law enforcement or supervisory agency), you should contact FinCEN’s Office of Chief Counsel at (703) 905-3590 immediately; federally regulated depository institutions should also contact their regulator.