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Suspicious Activity Report Filings Still Rising
The number of suspicious activity reports filed with the U.S. Financial Crimes Enforcement Network by securities and futures firms in 2005 increased 22% over 2004, FinCEN reported.
The number of suspicious activity reports filed with the U.S. Financial Crimes Enforcement Network by securities and futures firms in 2005 increased 22% over 2004, FinCEN reported. There were 6,936 SARs filed during 2005, according to FinCEN's report. In 2004 securities and futures firms filed 5,705 reports, a 34% increase from 2003.
Between Jan. 1, 2003 and Dec. 31, 2005, 16,908 reports were filed with FinCEN. The report indicated that 22.6% of the filers selected "other" as the characterization of a suspicious activity and 16.4% selected money laundering/structuring. Steve Hudack, a FinCEN spokesman, said firms select the category other to indicate that a financial transaction looks suspicious on many fronts. "It's a reflection that securities and futures industries' SARs are generally very complex," he said.
SARs documenting possible market manipulation increased the largest amount from 2004 to 2005--by 232%. SARs filed for possible securities fraud increased 110% over those filed in 2004. In 2005 FinCEN released a report stating that clearing brokers and introducing brokers topped the list of those that filed SARs in the securities and futures industries at 2,265 and 1,858, respectively (CR, 6/10). The number of SARs filed by depository institutions--522,655 in 2005--still far outpace any other type of financial institution, including money services business.