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Federal financial regulators have issued new guidance to clarify how financial institutions, including credit unions, should approach suspicious activity reporting under the Bank Secrecy Act (BSA).
The NCUA, the Federal Deposit Insurance Corporation, the Federal Reserve, the Office of the Comptroller of the Currency and FinCEN jointly released updated Frequently Asked Questions (FAQs) on Oct. 9 to help institutions better understand their obligations under anti-money laundering and countering the financing of terrorism (AML/CFT) rules.
The FAQs focus on four key areas: Structuring, continuing activity reviews, timelines for such reviews and documentation requirements when a SAR is not filed. Regulators said the goal is to help financial institutions focus compliance resources on the activities that provide the greatest value to law enforcement and national security efforts, while reducing confusion around gray areas in SAR rules.
For example, the FAQs clarify expectations around documenting decisions not to file a SAR after an initial review, as well as how often institutions should reassess continuing suspicious activity. They also offer more practical guidance on identifying structuring, the illegal practice of breaking transactions into smaller amounts to avoid reporting thresholds and on aligning review timelines with regulatory expectations.
The agencies emphasized that the FAQs do not alter existing SAR obligations but aim to enhance consistency and efficiency in how institutions meet their BSA requirements. The full FAQs are available on the NCUA's website.
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