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Federal Deposit Insurance Corporation Clarifies Suspicious Activity Report Confidentiality Requirements for Customer Communications

On September 2, 2026, the Federal Deposit Insurance Corporation (FDIC), alongside the Board of Governors of the Federal Reserve System, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Financial Crimes Enforcement Network, issued a joint statement clarifying confidentiality requirements related to Suspicious Activity Reports (SARs) under the Bank Secrecy Act (BSA). The statement addresses how banks may communicate with customers regarding potentially fraudulent transactions, suspicious activity such as payment or check fraud, or account closures. The BSA prohibits disclosure of a SAR or any information that would reveal its existence, including to customers or persons who are the subject of the SAR. However, the joint statement clarifies that this prohibition does not prevent banks from communicating with customers or third parties about potentially fraudulent or suspicious transactions involving the customer's account, or notifying customers of the bank's intention to close an account for potentially fraudulent or suspicious activity—provided such communication does not reveal the existence of a SAR. The statement applies to all FDIC-insured financial institutions. It emphasises that banks should evaluate customer communications on a case-by-case basis and implement precautions when discussing information that could inadvertently reveal the existence of a SAR. This guidance aims to balance regulatory confidentiality requirements with the operational need for banks to communicate transparently with customers about account activity and decisions affecting their accounts. The joint statement is available as Financial Institution Letter (FIL) 55-2026 on the FDIC website.

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US Federal Regulators Clarify Suspicious Activity Report Confidentiality Requirements for Customer Communications

On September 2, 2026, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Financial Crimes Enforcement Network (FinCEN) issued a joint statement clarifying confidentiality requirements related to Suspicious Activity Reports (SARs), particularly when banks communicate with customers regarding potentially fraudulent transactions, other suspicious activity such as payment fraud or check fraud, or account closures. The joint statement addresses concerns raised in response to a June 2025 request for information on payments fraud mitigation. Commenters sought clarification on how banks can comply with SAR confidentiality requirements while providing customers with transparent and timely communication during fraud investigations. The statement also recognises concerns expressed in Executive Order 14331, Guaranteeing Fair Banking for All Americans, by facilitating improved transparency regarding bank actions on customer accounts. The Agencies clarified that while the Bank Secrecy Act (BSA) prohibits disclosure of a SAR or information revealing its existence to a customer or person subject to the SAR, this prohibition does not extend to "the underlying facts, transactions, and documents upon which a SAR is based." Accordingly, banks and credit unions may communicate with customers about potentially fraudulent or suspicious transactions, including transaction dates, amounts, and parties involved, or notify customers of account closure intentions, provided such communication does not reveal the SAR's existence. The statement provides non-exhaustive examples of permissible communications, including requesting customer due diligence information, notifying customers of account delays or closures related to suspected fraud, rejecting deposits due to suspected fraud, asking about transaction purposes or fund sources, providing fraud warnings, and communicating account maintenance policies. The Agencies emphasise that banks should evaluate customer communications on a case-by-case basis and exercise caution when discussing information potentially revealing a SAR's existence.

4 tool calls

fetch https://www.fdic.gov/news/financial-institution-letters/2026/joint-statement-suspicious-activity-report-confidentiality http · 2586 chars · 40 links
fetch https://www.fdic.gov/joint-statement-sar-confidentiality.pdf refused (not a fetched link)
search "FDIC suspicious activity report SAR confidentiality" → nids 93728, 95154, 95242, 91383, 94099
search "FDIC joint statement Bank Secrecy Act financial institution letter" → nids 92756, 95131, 94391, 93334, 94390

Published

1646 chars

US Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency Issue Joint Statement on Suspicious Activity Report Confidentiality Considerations

On September 2, 2026, the Federal Deposit Insurance Corporation (FDIC), alongside the Board of Governors of the Federal Reserve System, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Financial Crimes Enforcement Network, issued a joint statement clarifying confidentiality requirements related to Suspicious Activity Reports (SARs) under the Bank Secrecy Act (BSA). The statement addresses how banks may communicate with customers regarding potentially fraudulent transactions, suspicious activity such as payment or check fraud, or account closures. The BSA prohibits disclosure of a SAR or any information that would reveal its existence, including to customers or persons who are the subject of the SAR. However, the joint statement clarifies that this prohibition does not prevent banks from communicating with customers or third parties about potentially fraudulent or suspicious transactions involving the customer's account, or notifying customers of the bank's intention to close an account for potentially fraudulent or suspicious activity—provided such communication does not reveal the existence of a SAR. The statement applies to all FDIC-insured financial institutions. It emphasizes that banks should evaluate customer communications on a case-by-case basis and implement precautions when discussing information that could inadvertently reveal the existence of a SAR. This guidance aims to balance regulatory confidentiality requirements with the operational need for banks to communicate transparently with customers about account activity and decisions affecting their accounts.