3 minute read | October.14.2025
On October 9, 2025, the Financial Crimes Enforcement Network (FinCEN), along with the banking and credit union regulators, issued guidance in the form of frequently asked questions (FAQs) addressing the regulatory expectations for suspicious activity reports (SARs). The guidance is meant to clarify existing obligations rather than create new obligations.
According to the guidance, the mere occurrence of a transaction or series of transactions at or near the $10,000 CTR threshold does not, in itself, trigger a SAR filing requirement. Instead, a SAR is only required if the institution knows, suspects or has reason to suspect that the transaction is structured to evade CTR reporting (i.e., by breaking down a large transaction into smaller, separate transactions to avoid the reporting threshold). Financial institutions should continue to rely on AML/CFT programs that are tailored to their specific risk profiles, including the nature of their products, services, customer base and geographic footprint.
The FAQs also address the widespread practice of conducting separate reviews of customers or accounts following a SAR to determine whether suspicious activity has persisted. FinCEN clarifies that there is no regulatory requirement to conduct such post-SAR reviews. Instead, financial institutions should rely on their existing risk-based policies, procedures and controls to monitor for ongoing suspicious activity. This clarification is intended to reduce unnecessary operational burdens and allow compliance teams to concentrate on areas of heightened risk.
Some institutions have historically read FinCEN’s guidance to mean they must file continuing SARs at least every 90 days, with each filing due within 120 days of the last SAR. The FAQs make clear that this timeline is not mandatory. While FinCEN suggests intervals (e.g., filing an initial SAR within 30 days of detecting suspicious activity and subsequent SARs for continuing activity every 90 days), institutions retain discretion to file SARs as appropriate, as long as they comply with the general regulatory deadlines. When reporting continuing activity, the SAR should reflect the entire 90-day period following the initial SAR or the previous review period (i.e., day 30: filing initial SAR, day 120: end of 90-day period, and day 150: filing a SAR for continued suspicious activity).
FinCEN states that there is no explicit legal or regulatory requirement for financial institutions to document decisions not to file a SAR. Financial institutions may choose to document such decisions for internal purposes, and a concise statement is generally sufficient, except in more complex investigative scenarios. Any documentation should be consistent with the financial institution’s risk-based policies and procedures.
FinCEN’s FAQs are intended to streamline compliance obligations and direct institutional resources toward reporting activity that is most valuable to law enforcement and regulatory authorities. Nevertheless, financial institutions should be mindful that examiners may continue to scrutinize decisions not to file SARs and may challenge the sufficiency of internal documentation. As such, financial institutions should consider reviewing their existing practices and procedures, as well as their historic experiences with regulators and examiners, to assess how FinCEN’s guidance may affect their compliance programs.