What FinCEN is
Established in 1990, FinCEN is the United States' financial intelligence unit and the administrator of the Bank Secrecy Act. It sits inside the Department of the Treasury alongside OFAC, and its rules — extended significantly by the USA PATRIOT Act — define what a US AML programme must contain.
What FinCEN does
Four functions matter to compliance teams: rulemaking and guidance, collection and analysis of BSA reports, information sharing with law enforcement and foreign FIUs, and enforcement — including civil money penalties against institutions and individual officers. It also issues advisories flagging emerging typologies, which examiners expect firms to reflect in monitoring rules.
Reports firms must file
Suspicious Activity Report (SAR)
Filed when a firm knows or suspects a transaction involves illicit funds, evades reporting requirements or has no apparent lawful purpose. Deadlines are typically 30 days from detection.
Currency Transaction Report (CTR)
Filed for cash transactions above USD 10,000 in a single business day, aggregated across related transactions by the same person.
Beneficial Ownership Information (BOI)
Reporting companies file information on their beneficial owners under the Corporate Transparency Act, subject to the current scope of the rule.
FBAR and Form 8300
Reports of foreign financial accounts, and of cash payments over USD 10,000 received in a trade or business.
Thresholds, forms and scope change over time — always confirm current requirements against FinCEN's published rules before filing.
Key FinCEN rules
Customer Due Diligence (CDD) Rule
Requires risk-based customer due diligence and identification of beneficial owners of legal-entity customers as the fifth pillar of an AML programme.
AML/CFT programme requirements
Written policies, a designated compliance officer, ongoing training, independent testing and risk-based customer due diligence.
314(a) and 314(b) information sharing
Mandatory record searches in response to law-enforcement requests, and a voluntary safe harbour for institution-to-institution sharing.
Travel and recordkeeping rules
Transmittal of originator and beneficiary information with qualifying funds transfers, including for certain virtual-asset transfers.
MSB registration
Money services businesses must register with FinCEN, renew biennially and maintain state-level licences where required.
Staying compliant
Examiners test whether identification, screening, monitoring and reporting connect into one evidenced chain. ComplianceSuite covers that chain with KYC verification, beneficial-ownership checks, OFAC screening, transaction monitoring and case management with full audit trails — see the BSA/AML compliance and MSB compliance pages.
FAQ
What is FinCEN?
The Financial Crimes Enforcement Network (FinCEN) is a bureau of the US Department of the Treasury. It administers the Bank Secrecy Act, issues AML regulations and guidance, collects and analyses reports such as SARs and CTRs, shares financial intelligence with law enforcement, and takes enforcement action against institutions that fail to comply.
What is the difference between FinCEN and OFAC?
Both sit within the US Treasury but do different jobs. FinCEN regulates AML programmes and reporting under the Bank Secrecy Act. OFAC administers sanctions programmes and maintains the SDN list, requiring firms to block or reject dealings with designated parties. Most US-regulated firms have obligations to both.
Who has to report to FinCEN?
BSA-defined financial institutions: banks and credit unions, broker-dealers, mutual funds, futures commission merchants, money services businesses including many crypto firms, casinos, certain insurers, and — for beneficial-ownership reporting — companies within the scope of the Corporate Transparency Act rule.
When must a SAR be filed?
A SAR is generally filed within 30 calendar days of the date the institution initially detects facts that may form the basis for filing, extendable to 60 days where no suspect has been identified. Firms must not tip off the subject that a report has been filed.
What are the penalties for non-compliance?
FinCEN can impose civil money penalties on institutions and on individuals, including compliance officers, for programme and reporting failures. Cases are often resolved with consent orders requiring independent monitors and remediation, and serious conduct can be referred for criminal prosecution.
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