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Deadline Set for Mandatory SARs Filings by Non-Bank Lenders

A deadline has been established for a new requirement that mortgage brokers and other non-bank residential lenders file reports when mortgage fraud is suspected.

The Financial Crimes Enforcement Network last week said that it finalized new regulations requiring non-bank residential lenders to file suspicious activity reports.

Financial institutions were already required to file SARS when mortgage fraud is suspected.

The new regulations mandate that lenders and originators establish anti-money laundering programs.

FinCEN said that the final rule would go into effect 60 days after it is published in the Federal Register. The compliance date will be six months after publication.

Today, FinCEN published the final rule in the Federal Register.

That puts effective date at April 14 and the compliance date at Aug. 14.

“FinCEN, a bureau of the Department of the Treasury, is issuing this final rule defining non-bank residential mortgage lenders and originators as loan or finance companies for the purpose of requiring them to establish anti-money laundering programs and report suspicious activities under the Bank Secrecy Act,” today’s filing stated.

Related:
Regulation Requires SARs Filings by Non-Bank Lenders
Mortgage brokers and non-bank mortgage lenders will soon be required to file reports when mortgage fraud is suspected. The additional compliance burden is likely to lead to an increase in filing statistics even though actual fraud activity could retreat.

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