FinCEN and Federal Banking Agencies Clarify What Banks May Say About Fraud Without Disclosing SARs

The agencies reiterated that the BSA prohibits disclosure of a SAR or information that would reveal the existence of a SAR. They made a clear distinction: the prohibition on disclosure does not extend to the underlying facts, transactions, and documents on which a SAR is based. That distinction is the core of the guidance.

Specific communications the agencies said are permissible

• Discuss suspicious transactions: institutions may communicate transaction dates, amounts, parties, and other underlying facts so long as the message does not reveal that a SAR has been filed.
• Explain account restrictions or closures: banks and credit unions may tell customers that an account delay, limitation, restriction, or closure relates to suspected fraud or other suspicious activity.
• Request additional information: institutions may ask customers about the purpose of transactions, sources of funds, relationships between parties, and identities of originators or beneficiaries of transfers.
• Provide fraud-related information: institutions may warn customers about fraud schemes and explain mitigation or remediation options.

Practical steps for banks and credit unions

• Review customer-facing scripts and policies. Update fraud-notification language and account-closure scripts to reflect that underlying facts can be discussed, while preserving SAR confidentiality.
• Train front-line staff and investigators on what specific factual details may be shared (dates, amounts, parties) and on language that would reveal a SAR (for example, statements explicitly indicating a SAR was filed or under review).
• Adopt a case-by-case approach. The agencies advised evaluating communications under the facts of each situation rather than applying a blanket rule.
• Maintain safeguards. Continue operational controls to prevent inadvertent disclosures that would reveal the filing or existence of a SAR.

The clarification provides practical guidance for balancing SAR confidentiality with customer service during fraud investigations and account closures. It aligns with broader federal banking agency attention to fair access to financial services by making clear what institutions can tell customers about suspected fraud and available remediation.

Banks and credit unions may speak to customers about the facts of suspicious transactions, account status changes, and fraud mitigation without violating SAR confidentiality — provided they do not reveal the existence of a SAR. Institutions should update playbooks, train staff, and apply a fact-specific review to communications to avoid inadvertent disclosure.