On October 9, 2025, the Financial Crimes Enforcement Network (FinCEN), jointly with the prudential banking regulators, issued answers to frequently asked questions (FAQs) regarding suspicious activity reporting (SAR) and other anti-money laundering/countering the financing of terrorism (AML/CFT) considerations for Financial Institutions (or “FIs”) covered by SAR rules. The FAQs aim to clarify the regulatory requirements related to SAR filings and reinforces a risk-based approach to focus resources on activities that produce the greatest value to law enforcement and other authorized users of Bank Secrecy Act (BSA) reporting. Four key topics are addressed in the FAQs:
- SAR Filings for Potential Structuring-related Activity: The FAQs clarify that a transaction or series of transactions on behalf of the same person at or near the currency transaction report (CTR) threshold (i.e., $10,000) is not, by itself, sufficient evidence to require a SAR filing. Instead, Financial Institutions are only required to file an SAR if the institution knows, suspects, or has reason to suspect that the transaction or series of transactions are designed to evade CTR requirements.
- Continuing Activity Reviews: Clarification is provided for continuing activity reviews. Continuing activity review requirements have been historically interpreted as an expectation that a Financial Institution should repeatedly file SARs for ongoing suspicious activity at least every 90 days. The FAQs provide that Financial Institutions are not required to conduct a separate review following the filing of a SAR to determine whether suspicious activity has continued. Rather, Financial Institutions are expected to take a risk-based approach and rely upon internal procedures and controls to monitor and report suspicious activity, as appropriate.
- Continuing Activity Reviews – Timeline: For Financial Institutions that decide to file SARs in accordance with FinCEN’s continuing suspicious activity guidance, the following timeline is outlined:
- Day 0: detection of facts that may constitute a basis for filing a SAR
- Day 30: filing of initial SAR
- Day 120: end of 90-day period
- Day 150: filing of a SAR for continued suspicious activity
When filing a SAR for continuing activity, the date or date range of suspicious activity (Item 30 on the SAR form) should include the entire 90-day period starting on the date immediately following the filing of the initial SAR or the date following the end of the previous 90-day period.
- No SAR Documentation: While previously encouraged by FinCEN, the FAQs clarify that there is no requirement or expectation under the BSA for a Financial Institution to document its decision not to file a SAR. In instances where an FI elects to document its decision not to file a SAR, the FAQs provide that the level of documentation is expected to be commensurate with the risk and complexity of the situation.
Relaxation on certain elements of SAR filings will come as a major relief for financial institutions. However, these FAQs do not eliminate compliance risk. Rather, the FAQs help refine expectations regarding how risks must be managed and explained. While the FAQs promote judgment and flexibility, they also leave in place expectations that FIs must demonstrate the appropriate use of that judgment through structured documentation and audit-ready evidence.
Institutions should assess the risks and controls within each area to understand their potential impact. Structuring is typically the most frequently identified issue and is often the easiest to detect through routine reporting. The FAQs do not provide relief for the reporting of transactions that are knowingly designed or suspected of evading CTR reporting requirements. As such, FFIs must maintain ongoing monitoring for patterns or intentional structuring of deposits.
The FAQs clarified institutions are not obligated to formally record such decisions where a SAR was not filed. However, FIs may wish to evaluate their internal processes and assess the risks as they consider adjustments to their practice. Identifying and investigating activity remains a critical component of BSA monitoring, whether conducted through automated systems or manual procedures. When a legitimate situation arises that warrants investigation, Financial Institutions should continue documenting the outcomes. Maintaining records of decisions not to file SARs can be an effective way to demonstrate the types of activity reviewed and the depth of analysis performed.
The fundamental purpose of the AML/CFT examination remains, and FIs must be able to demonstrate that their AML program is effective. FIs can still expect examiners to test whether practices, governance, and controls appropriately demonstrate thoughtful, risk-based decision-making.
In light of today’s FAQs, FIs should consider the following:
- Policy Updates: Revise SAR policies and procedures to reflect the updated expectations and continuing activity guidance.
- Quality Control: Enhance SAR review processes to ensure filings are risk-based and justified.
- Audit/Examiner Readiness: Ensure SAR decision policies and procedures are clearly outlined and align with FinCEN’s updated expectations. Additionally, prepare documentation showing how SAR decisions align with updated expectations.
- Training: Re-educate AML analysts and frontline staff on the updated SAR triggers and thresholds. Prepare the audit team for revisions to its examination scripts/plans.
- AML Systems: Confirm alerts and triggers are appropriately calibrated to detect and escalate events in a timely manner.
- AI Adoption &Governance: Consider responsible use of AI to optimize lower-risk SAR-related tasks, such as level one alert clearing, and adopting an AI governance model to ensure that any technological dependencies are appropriately documented, implemented, and integrated within the FI’s risk-based AML program.
How Forvis Mazars Can Help
At Forvis Mazars, we help Financial Institutions navigate the growing number of policy changes and obligations that regulators demand, helping you meet business objectives. Our Financial Crimes Advisory team supports clients in building programs that are defensible, efficient, and regulator-ready - without compromising judgment or inclusion. Our ProBank Education Services team supports our clients' AML/CFT training needs with a variety of seminars and webinars. For more information on how we can help evaluate and optimize your program, please contact us.