What happens if an MSB does not comply with the law?
The law may impose civil and criminal penalties against businesses and their employees who fail to comply with the law. Penalties may be assessed for: • Failure to secure identifying information • Failure to maintain required records • Failure to file a report or filing a report containing any material omission or misstatement A civil penalty of $500 may be asserted against a financial institution for failure to file a SAR due to negligence. A civil penalty for willful failure to file a SAR can be asserted against any domestic financial institution and its partners, directors, officers, or employees in the amount of the transaction (not to exceed $100,000), or $25,000, whichever is greater. The penalty for recordkeeping violations can be up to $1,000 per violation. Criminally, a person may be subject to a fine of $250,000 or imprisoned up to five years for failure to file a SAR. If the violation is committed during a violation of another federal law or as a pattern of illegal activity
