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

Credit unions are required to notify their board of directors about Suspicious Activity Report (SAR) filings at least monthly. This requirement ensures that the board is kept informed of potential suspicious activities that may warrant further investigation or action. Regular reporting to the board promotes a culture of compliance and vigilance in the financial institution, allowing for timely decisions regarding risk management and regulatory obligations.

This monthly notification also aligns with the goals of the Bank Secrecy Act (BSA) to ensure transparency and accountability in financial operations, enabling the board to adequately oversee the credit union’s anti-money laundering (AML) programs. Frequent communication with the board is critical for maintaining proper oversight of compliance efforts, facilitating discussions regarding the institution’s risk exposure, and implementing improvements where necessary.