December 19, 2025

Vol. XLII, No. 18

Bank Secrecy Act and Suspicious Activity Reports: FinCEN Clarifies SAR Filing Expectations

The Financial Crimes Enforcement Network (FinCEN), and federal banking agencies, released updated guidance clarifying expectations around suspicious activity report (SAR) filings under the Bank Secrecy Act (BSA). A series of frequently asked questions (FAQs) address common compliance challenges and reinforce a risk-based approach to SAR reporting.

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 the reporting requirements. The guidance also clarifies that institutions may rely on their risk-based protocols to identify and report suspicious activity and that a separate review, manual or otherwise, for continuing activity is not required unless new information emerges.

The guidance provides clear timelines should a financial institution file on continuing suspicious activity in line with previous FinCEN guidance. Set forth below is a timeline in which a financial institution files a SAR with an identified subject and determines that suspicious activity has continued:

• 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 filing period;
• Day 150: filing of a SAR for continued suspicious activity.

NOTE: If a financial institution cannot identify a subject and elects to file a SAR 60 days after detection of the facts that may constitute a basis for filing a SAR, the initial filing date would result in all additional dates being extended 30 days:

• Day 0: detection of facts that may constitute a basis for filing a SAR;
• Day 60: filing of the initial SAR;
• Day 150: end of the 90-day filing period;
• Day 180: filing of a SAR for continued suspicious activity.

​Notably, the FAQs state that decisions not to file SARs are not required; but, should a financial institution decide to document such a decision, in non-complex cases a concise statement is sufficient. Although, a financial institution may consider more documentation to explain the factors that the institution considered in reaching a SAR filing determination in more complex investigation scenarios.

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The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.