Financial institutions have long approached communications about suspicious activity with caution given the strict confidentiality rules governing Suspicious Activity Reports (SARs). New

guidance from FinCEN and the federal banking agencies provides welcome clarity: institutions may discuss the underlying facts of potentially fraudulent or suspicious transactions with customers and third parties, so long as they do not reveal the existence of a SAR.

The guidance also addresses account restrictions and closures, confirming that institutions may tell customers that such actions relate to suspected fraud or suspicious activity — even if the customer might infer that a SAR was filed.

In our latest blog post, we break down the new guidance and what it means for fraud investigations, customer communications, account closures, and BSA/AML compliance. Click here to read more.