US Regulators Permit Banks to Discuss Facts Underlying SARs
Five federal financial regulators have jointly clarified that banks can communicate with customers about the underlying facts and transactions of suspected fraud without violating rules on Suspicious Activity Report confidentiality.
In a significant clarification for financial institutions, five U.S. federal regulators jointly stated that banks and credit unions may discuss the underlying facts of suspicious transactions with customers without violating Bank Secrecy Act confidentiality rules. The September 2, 2026, statement from the Federal Reserve, FDIC, OCC, NCUA, and FinCEN addresses a long-standing tension between transparency and the prohibition against disclosing the existence of a Suspicious Activity Report (SAR). The guidance confirms that while an institution can never reveal that a SAR has been or will be filed, it is permitted to discuss the specific transactions, dates, amounts, and other facts that prompted the concern. This allows banks to provide customers, including potential fraud victims, with clearer explanations for account restrictions, rejected deposits, or account closures. The agencies noted that a customer deducing a SAR might be filed from these facts does not constitute an improper disclosure. Financial institutions should now review and update customer-communication scripts and staff training to reflect this guidance, ensuring they carefully document the distinction between discussing facts and revealing a SAR.