FinCEN and Banking Regulators Issue Joint Statement Regarding SAR Confidentiality

On September 2, 2026, FinCEN and the Federal Reserve, FDIC, NCUA, and the OCC issued a joint statement clarifying Suspicious Activity Report (SAR) confidentiality for banks and credit unions. 

Specifically, the joint statement confirms that SAR confidentiality does not bar banks and credit unions from communicating with a customer, or with other banks and credit unions about potentially fraudulent or other suspicious transactions involving the customer’s account, including an intention to close the account, so long as that communication does not reveal the existence of a SAR.

The joint statement does not amend the Bank Secrecy Act (BSA) and does not create any new supervisory expectations. The BSA and FinCEN’s bank SAR rule prohibit disclosing a SAR, or information that would reveal a SAR exists, to a customer or other person who is the subject of the SAR.  The same rule has long provided, however, that communicating the underlying facts, transactions, and documents upon which a SAR is based is not, alone, a violation of that prohibition.  The purpose of the joint statement is to make that distinction clear.

FinCEN and the agencies stated that banks and credit unions should consider customer communication on a “case-by-case basis and take precautions when discussing information that could reveal the existence of a SAR.”  The joint statement provided the following non-exhaustive list of what would not typically reveal the existence of a SAR:

• Requesting customer due diligence-related information or documentation to understand the nature and purpose of customer relationships for the purpose of developing a customer risk profile;
• Notifying a customer that a delay, limitation, or restriction on an account or service or closure of an account may be related to suspected fraud or other suspicious activity;
• Notifying a customer that a deposit has been rejected because of suspected fraud or other suspicious activity, for example, in the context of altered or counterfeit checks;
• Asking a customer about the purpose of a transaction or the source of funds;
• Providing warnings or educational resources to a customer about fraud schemes or typologies, including circumstances where a customer may be defrauded or a customer may be participating, knowingly or unknowingly in a fraud scheme, such as providing information about known “money mule” schemes or typologies;
• Communicating policies or decisions related to account maintenance or services, such as declining a transaction or closing an account; or
• Requesting information on the originator or beneficiary of a funds transfer.

FinCEN and the agencies stated the clarification is intended to improve transparency around account actions, enhance customer engagement, and give customers greater assurance of fair access to financial services.