3.2. Basic Structure of an STR or SAR
Effective from 7/6/2021The Compliance Officer or MLRO and other concerned employees responsible for using the goAML system must be aware of the different report types. As such, the LFI should select the correct report type when filing a report through the goAML system. The STR and SAR are the primary (or first instance) reports which must be used to report a new suspicion, whereas Additional Information File without Transactions (“AIF”) and Additional Information File with Transactions (“AIFT”) report types are supplementary reports which can be used to escalate additional information or transactions that correspond to a previously filed STR or SAR. When filing an AIF or AIFT, the LFI should input the Reference Number that corresponds to the STR or SAR.
| • | STR: If, during the establishment or course of the customer relationship, or when conducting transactions on behalf of a customer or an occasional customer, an LFI suspects transactions are related to money laundering, related predicate offenses, or the financing of terrorism or illegal organisations, then the LFI should submit an STR to the FIU within the timelines established in this guidance. | |||
| • | SAR: If, during the establishment or course of the customer relationship, an LFI suspects any activity or an attempted transaction (i.e., a non-executed transaction) can be related to money laundering, related predicate offenses, or the financing of terrorism or illegal organisations, then the LFI should submit a SAR to the FIU within the timelines established in this guidance. | |||
| • | Additional Information File (“AIF”) without Transactions: Should the FIU require any further details while reviewing an STR or SAR, then the LFI that originally submitted the report may be solicited for further information by receiving an AIF request from the FIU through the Message Board. Should such a situation arise, the LFI is required to submit an AIF based report through the goAML platform. Please note that an AIF is a supplemental report that does not contain transactional details. | |||
| • | Additional Information File with Transactions (“AIFT”): Should the FIU require any further details including transactions while processing an STR or SAR, then the LFI that originally submitted the said report may be solicited for further information including transactions by receiving an AIFT request from the FIU through the Message Board. Should such a situation arise, then the LFI is required to submit an AIFT report through the goAML. Please note that an AIFT is a supplemental report that contains transactional details. | |||
| • | Request for Information (“RFI”) without Transactions: Should the FIU require further information from multiple LFIs rather than just the entity responsible for submitting the STR or SAR, then an RFI request will be sent out to the concerned LFIs through the goAML Message Board. Should such a situation arise, then the LFI is required to submit an RFI report through the goAML portal. | |||
| • | Request for Information with Transactions (“RFIT”): The ‘RFI with Transaction(s)’ report is similar to the structure of an RFI request, with the exception that this report type supports the use of transactions. | |||
| • | High Risk Country Transaction Report (“HRC”): If, during the establishment or course of the customer relationship, or when conducting transactions on behalf of a customer or a potential customer, an LFI identifies transactions related to high-risk countries as defined by the National Anti-Money Laundering and Combating the Financing of Terrorism and financing of Illegal Organizations Committee2, then the LFI should submit an HRC to the FIU. Such reported transaction(s) may only be executed three working days after reporting such to the FIU, and if the FIU does not object to conducting the transaction within the set period. | |||
| • | High Risk Country Activity Report (“HRCA”): If, during the establishment or course of the customer relationship, or when conducting an activity on behalf of a customer or a potential customer, a reporting entity identifies activities related to high-risk countries as defined by the National Anti- Money Laundering and Combating the Financing of Terrorism and financing of Illegal Organizations Committee3, then the entity should submit an HRC to the FIU. Such reported activity(ies) may only be executed three working days after reporting such to the FIU, and if the FIU does not object to conducting the activity within the set period. | |||
When all applicable information is collected, analyzed, and documented and the LFI decides that an STR or SAR is required, the information should be described in the narrative within an investigative narrative report template in a concise and chronological format. The LFI should divide the narrative into three sections: an introduction, a body, and a conclusion. The investigative narrative report template is considered as an addition to the goAML report (due to the potential text limitation within the “goAML description of the report” field).
| • | Introduction | |||
| The introductory paragraph should provide: | ||||
| • | A brief statement addressing the purpose of the report with a general description of the known or alleged violation. | |||
| • | The name(s) of the subject against whom the report is filed. | |||
| • | Any linked/ previous STRs, SARs, or other reports, including the date of any STR(s) / SAR(s) filed (or other reports) previously on the suspect or related suspects and the reason why the previous STR(s) / SAR(s) (or other report) was filed. | |||
| Additional Guidance: | ||||
| • | Whether the activity is associated with any sanctioned countries or contained on government lists for individuals or organisations. | |||
| • | A summary of the “red flags” and suspicious patterns of activity that initiated the report. (This information should be provided either in the introduction or conclusion of the narrative). | |||
| • | Body | |||
| The next paragraph or paragraphs of the narrative can provide all pertinent information documenting why the STR, SAR, or other report was filed and might include: | ||||
| • | Details of parties facilitating the suspicious activity or transactions. If the subject is an entity, details of the subject can include the entity’s trade license number, date established, line of business, licensing authority, and ownership structure. | |||
| • | Involved suspected transactions (usually identified in chronological order by date and amount) [To be included only for an STR and supplementary reports involving transactions]. | |||
| • | The review period for the suspicious activity or transactions. | |||
| • | The source of funds, destination of funds, and total of suspected amounts. This can include the transactor and beneficiary information, providing as much detail as possible, including the name and location of any involved domestic and/or international financial institution(s); names, addresses, account numbers, and any other available identifiers of originator and beneficiary transactor(s); and/or third parties or business entities on whose behalf the conductor was acting; the date(s) of the transaction(s); and amount(s). | |||
| • | Explain in detail the reason for the suspicion, and why the activity or transaction is determined to be illegal or suspicious. | |||
| • | Description of the method of operation (i.e., modus operandi). | |||
| Additional Guidance: | ||||
| • | A breakdown of larger volumes of financial activity into categories of credits and debits, and by date and amount. [To be included only for an STR and supplementary reports involving transactions]. | |||
| • | An explanation of any observed relationships among the transactors (e.g., shared accounts, addresses, employment, known or suspected business relationships and/or frequency of transactions occurring amongst them; appearing together at the LFI and/or counter). [To be included only for an STR and supplementary reports involving transactions]. | |||
| • | Specific details on cash transactions that identify the branch(es) where the transaction(s) occurred, the type of transaction(s), and how the transaction(s) occurred (e.g., night deposit, on-line banking, ATM, etc.). [To be included only for an STR and supplementary reports involving transactions]. | |||
| • | Any factual observations or incriminating statements made by the suspect. | |||
| • | Conclusion | |||
| The final paragraph will be covered under “Action Taken by Reporting Entity” field. The final paragraph of the narrative can summarize the report and might also include: | ||||
| • | Any planned/initiated mitigating steps, including information about any follow-up actions conducted by the LFI (e.g., intent to close or closure of accounts, ongoing monitoring of activity, etc.). | |||
| Additional Guidance: | ||||
| • | Names and telephone numbers of other contacts at the LFI if different from the point of contact indicated in the report. | |||
| • | A general description of any additional information related to the LFI that may be made available to law enforcement by the LFI. | |||
| • | Names of any law enforcement or department/unit investigating the case who are not already identified in another section of the report. | |||
2 https://www.namlcftc.gov.ae/en/high-risk-countries.php
3 Idem note