Oct 27, 2025 The Financial Crimes Enforcement Network (FinCEN), together with the Federal Reserve, FDIC, NCUA, and OCC, has issued updated Frequently Asked Questions (FAQs) clarifying key aspects of Suspicious Activity Report (SAR) requirements under the Bank Secrecy Act (BSA). This guidance—released October 9, 2025—aims to reduce unnecessary SAR filings and ensure that financial institutions focus compliance resources on activity that provides the most value to law enforcement and national security objectives. No SAR Required Solely for Transactions Near the $10,000 Threshold FinCEN clarified that a SAR is not required simply because a transaction or series of transactions occurs at or near the Currency Transaction Report (CTR) threshold of $10,000. A SAR must only be filed when an institution knows, suspects, or has reason to suspect that the transaction is designed to evade reporting requirements—for example, through structuring. Structuring involves intentionally breaking down larger cash transactions into smaller ones to avoid triggering a CTR and is prohibited under 31 U.S.C. § 5324. Financial institutions should ensure AML/CFT programs are risk-based and capable of detecting such patterns. Learn more about structuring laws No Separate “Continuing Activity Review” Required After a SAR Filing Historically, some institutions interpreted FinCEN’s guidance as requiring a follow-up review of accounts after each SAR filing. The new FAQs confirm this is not a regulatory requirement. Instead, institutions may rely on existing monitoring systems and risk-based controls that are reasonably designed to detect and report suspicious activity as it continues. This clarification is especially helpful for smaller firms or introducing brokers where automated systems and manual reviews must be balanced efficiently. Updated Timeline Guidance for Continuing SAR Filings FinCEN reiterated that while its prior advisories referenced a 90-day “continuing activity” SAR cycle, this timeline is not mandatory. For institutions that choose to maintain the 90-day practice, FinCEN provided the following example timeline: Day 0: Detection of suspicious activity Day 30: Initial SAR filing Day 120: End of the 90-day review period Day 150: Continuing activity SAR filed Institutions may adjust these intervals based on internal risk frameworks, customer profiles, or case complexity. No Obligation to Document Non-Filing Decisions FinCEN and the banking agencies confirmed that there is no requirement to document decisions not to file a SAR. That said, concise internal documentation can be beneficial, especially in higher-risk cases or for audit trail purposes. Any such documentation should remain proportionate to the risk and consistent with the firm’s internal AML/CFT policies. In most cases, a short, factual statement is sufficient to demonstrate reasonable decision-making. Why This Matters The October 2025 FAQs mark another step toward modernizing AML compliance expectations and reducing regulatory burden through a risk-based, proportionate approach. For firms such as futures commission merchants (FCMs), introducing brokers (IBs), and commodity trading advisors (CTAs) subject to 31 C.F.R. § 1026.320, this clarification should prompt a review of: SAR escalation procedures Risk-based monitoring triggers Internal documentation policies Frequency of follow-up filings The FAQs reaffirm that compliance programs should emphasize quality over quantity—directing institutional resources toward meaningful, high-value reporting that supports law enforcement outcomes. Additional Resources FinCEN AML/CFT Priorities OCC SAR Filing Guidance NFA AML Requirements for FCMs and IBs Turnkey Trading Partners provides full-service AML program development, AML policy drafting, and independent AML testing for CFTC/NFA registrants. For more information, contact info@turnkeytradingpartners.com or visit www.turnkeytradingpartners.com.