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Regulatory Compliance

SAR Compliance Audit

  • Overview
  • Methodology
  • Purpose
  • Our Approach
  • Benefits
  • Clients
  • FAQs

Overview : SAR Compliance Audit

A Suspicious Audit Report (SAR) is a regulatory requirement established by the RBI to provide adequate security precautions and data localization controls for the storage of payment-related data. The device is made available for keeping track of money-laundering or fraud suspicions that need to be reported to the Financial Crimes Enforcement Network (FinCEN). It informs law enforcement that a specific client or consumer is in some way questionable.

Methodology

The Reserve Bank of India is the country's central banking organization and will assist in providing unlimited data on all transactions that occur in India. An effort was made to advance “Data Localization.” The act of storing citizen data locally to prevent access from outside of one's country is referred to as "data localization." The RBI sent a notification to facilitators and transaction providers requesting that they make sure that the data is stored in systems located in India.

Why do organizations need it?

  • The US Anti-Money Laundering laws and regulations include SARs as a component. The aim of SAR and the investigations that follow is to locate the clients who are engaged in fraud or money laundering.

  • SARs enable law enforcement to identify patterns and trends in both organized and individual financial crimes.

  • It is also necessary if a financial institution discovers proof of computer hacking or a customer running an illegal money services operation.

  • SAR can assist in creating future legislation and policy to counteract such actions.

  • Implementation of SAR will assist in a way for the government to analyze emerging trends in financial crime.

  • Our clients may be proactive in discovering vulnerabilities in their IT infrastructure and evaluating the efficacy of their present security precautions thanks to audits carried out by a CERT-IN empaneled auditor.

  • Enables local governments and regulatory bodies to request data as necessary.

Our Approach

Information gathering and Documentation review
In order to understand how data flows, a thorough questionnaire is offered, shared with the teams, and supported by other supporting material and statistics on implementation and controls.

In order to understand how data flows, a thorough questionnaire is offered, shared with the teams, and supported by other supporting material and statistics on implementation and controls.

After defining the scope of the project and beginning the engagement, we'll carry out an initial audit to understand the organization's infrastructure and assist our clients in locating all the storage facilities that house any payment-related data.

The remediation support for adhering to the RBI mandate will be provided by kratikal in accordance with the assessment and identification of the payment data.

After evaluation and correction, Kratikal will look over your documentation regarding the Action phase's successful conclusion as noted during the audit. When the transaction is completed successfully, we will provide the letter of confirmation stating that all payment-related data is stored in India.

Benefits

Clients

Kratikal Insights

+

Enterprise
Customers

+

Organizations’ Security
Compliant

K+

Small and mid-size
enterprises (SMEs)

K+

Threats Recorded in
GCTx Database

FAQs

What are the major key criteria covered under SAR audit?

The major parts covered are - Payment Data elements, Data Storage, Access Management, Data Backup & Restoration, Data Security.

Few common patterns of suspicious activity identified by FinCEN
a) A strange combination of deposits were made into a business account.
b) Bulk transactions involving money and currency.
c) Series of transactions that are unusually complicated and involve several individuals, banks, and accounts.
d) Transactions made with the intention of avoiding reporting and recordkeeping obligations.

If there is reason to believe that the account holder is trying to conceal something or carry out an illegal transaction, the activity may be included in the SAR.

Suspicious activity Report should identify -
a) Details of suspicious activity
b) Any company involved in the suspicious transactions or the personal particulars like telephone number, date of birth, address of the person.