Maryland Legal Alert for Financial Services
FinCEN Issues SAR Guidance
On October 9, 2025, the Financial Crimes Enforcement Network (FinCEN), jointly with the primary federal financial institution regulators, issued updated Frequently Asked Questions (FAQs) concerning Suspicious Activity Reporting (SAR) and account review requirements. The FAQs reinforce a risk-based approach, such that a financial institution’s anti-money laundering (AML) program should be tailored to the financial institution’s products, services, account holder base, and geographic footprint – rather than applying blanket rules. The updated FAQs make clear that the decision concerning whether or not to file a SAR should be focused on account holder intent, not just transaction amount. FinCEN indicated that a SAR filing is not required solely because a transaction or series of transactions is at or near the $10,000 currency transaction reporting (CTR) threshold. Instead, a SAR is only required if there is knowledge, suspicion, or reason to suspect that the transaction is designed to evade Bank Secrecy Act (BSA) reporting (i.e., structuring). The guidance suggests that financial institutions can emphasize pattern recognition and intent over mechanical triggers (to cut down on unnecessary filings and increased focus on genuinely suspicious activity).
Other takeaways include:
- No regulatory requirement to conduct a separate review of an account or account holder after filing a SAR to determine if suspicious activity has continued;
- The previously interpreted “90-day rule” for continuing SAR filings is not mandatory and financial institutions may file SARs for ongoing activity as appropriate (provided regulatory deadlines are met – initial SAR within 30 days of activity, up to 60 days if subject of SAR is unidentified); and
- No requirement to document the decision not to file a SAR (but if a financial institution elects to document such a decision, in most cases a concise summary is appropriate).
Practice Pointer: Financial institutions should review current SAR and AML policies to consider adjustments to language that conflicts with FinCEN’s latest clarifications.
For more information, contact Christopher R. Rahl.