Compliance Update — Insights And Highlights October 2025

Recently, the Financial Crimes Enforcement Network (FinCEN), the Federal Reserve, the Federal Deposit Insurance Corp., the National Credit Union Administration, and the Office of the Comptroller of the Currency (collective, the Agencies) issued responses to four frequently asked questions (FAQ) related to Suspicious Activity Report (SAR) requirements. The questions and answers are related to structuring SARs, continuing SARs, and documentation of decisions not to file SARs.

First, the Agencies clarified that a financial institution is not required to file a SAR for a transaction or series of transactions for structuring unless the institution knows, suspects, or has reason to suspect that the transaction or series of transactions is designed to evade Currency Transaction Report (CTR) requirements. In other words, if a transaction is picked up in monitoring simply for being just at or under the $10,000 CTR threshold and for no other reasons, then a SAR may not be required. The institution will need to review the facts and circumstances of each transaction in conjunction with the bank's policies and procedures.

Next, the Agencies addressed continuing SARs. First, they clarified that, as a matter of course, a financial institution is not required to conduct a separate review of a customer or an account following the filing of a SAR to determine whether the suspicious activity has continued. Rather, the institution may rely on its policies, procedures, and monitoring activities in order to detect continuing suspicious activity. Additionally, clarification was made related to the timeline during which continuing SARs may be filed as follows: Day 0 — the detection of facts that may constitute a basis for filing a SAR; Day 30 — the filing of an initial SAR; Day 120 — the end of the 90-day period; and Day 150 — the filing of a SAR for continued suspicious activity. It was further clarified that the date or date range of suspicious activity on the SAR form should include the entire 90-day period starting the day after the filing of an initial or a continuing SAR.

Finally, the Agencies clarified that financial institutions are not required to document decisions to not file a SAR, though such documentation has previously been encouraged by FinCEN. They further clarified that if an institution does decide to document the decisions to not file a SAR, then the level of documentation will vary based on the specific activity being reviewed, but in many cases, a short statement would be sufficient.

These FAQ provide valuable clarification for financial institutions navigating the complex landscape of suspicious activity monitoring and reporting. By outlining when a SAR is required, simplifying expectations for ongoing monitoring, and clarifying documentation practices, the Agencies aim to promote consistency across the industry while reducing unnecessary regulatory burden. Institutions should review their internal policies and procedures in light of this guidance to ensure compliance and maintain effective, risk-based approaches to detecting and reporting suspicious activity.

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