How often must a credit union notify their board of directors about SAR filings?

A credit union is required to notify its board of directors about Suspicious Activity Report (SAR) filings on a monthly basis. This regular communication is essential for ensuring that the board is aware of any suspicious activities that have been reported and can take appropriate action or oversight.

The requirement for monthly notifications provides assurance that the board is kept informed of any significant compliance issues, allowing for timely decision-making regarding risk management and policy adjustments. Frequent updates empower the board to maintain a strong understanding of the operational environment and the institution’s adherence to compliance requirements outlined by the Bank Secrecy Act.

While some organizations may consider less frequent reporting, such as quarterly or annually, these intervals may not provide sufficient oversight given the dynamic nature of suspicious activities that could significantly impact a credit union's operations. Weekly reports, on the other hand, could be overly burdensome and unnecessary for standard operations, given that monthly updates strike a balanced approach to compliance and governance.