US Regulators Permit Discussing SAR Facts with Customers
Five US federal regulators have jointly clarified that the Bank Secrecy Act does not bar banks from discussing the underlying facts, transactions, and documents related to a suspicious activity report with the customer involved.
Five major US financial regulators, including FinCEN and the Federal Reserve, issued a joint statement clarifying that banks may discuss the factual basis for a Suspicious Activity Report (SAR) with customers. The guidance, released September 2, 2026, confirms that Bank Secrecy Act (BSA) confidentiality rules prohibit disclosing a SAR's existence but do not prevent sharing the "underlying facts, transactions, and documents." This allows banks to give customers more transparent explanations for account restrictions or closures without illegally "tipping off" the subject.
The clarification is a response to industry requests and an executive order on fair banking, aiming to reduce overly cautious interpretations of the law that can lead to silent de-banking. The statement aligns with similar 2025 guidance that permitted sharing underlying SAR data with foreign affiliates. While not a safe harbor, the guidance encourages banks to update customer-facing scripts and staff training to distinguish between permissible factual discussions and prohibited SAR disclosure, advising that such decisions should remain case-by-case and well-documented.