The SAR Balancing Act: Why FinCEN’s New FAQs Matter and Why You Need Experts Like ComplyCheck Published October 2025

In the ever-evolving landscape of financial crime compliance, clarity from FinCEN is always welcome, and the agency delivered just that in its October 9, 2025 release of new FAQs on Suspicious Activity Reporting (SARs).
Issued jointly with the Federal Reserve, FDIC, NCUA, and OCC, the guidance aims to clear up persistent misunderstandings about when, how often, and why financial institutions, including Money Services Businesses (MSBs), must file SARs under the Bank Secrecy Act (BSA).

While the FAQs bring long-needed relief and practical guidance to SAR compliance, they also highlight an underlying truth: most institutions are either over-filing out of fear or under-filing out of uncertainty. That is where ComplyCheck comes in.

 FinCEN’s FAQs Explained

FinCEN’s new FAQ document, titled “Frequently Asked Questions Regarding Suspicious Activity Reporting Requirements,” was released to clarify recurring points of confusion that have plagued financial institutions for years. The document does not change the law; it interprets and reinforces existing regulatory standards.

The FAQs cover four main areas of confusion: when SARs should be filed for possible structuring activity, whether institutions must perform continuing reviews, the timing of follow-up reports, and documentation when no SAR is filed. Each of these has caused inconsistent practices across the industry, especially among MSBs that often walk a fine line between regulatory expectations and operational realities.

Structuring Confusion and the $10,000 Threshold

For years, MSBs and banks have erred on the side of caution, filing SARs every time a customer’s transactions hover near the $10,000 Currency Transaction Report (CTR) threshold.

FinCEN’s new FAQs confirm what many compliance professionals have argued all along:

“The mere presence of a transaction or series of transactions by or on behalf of the same person at or near the $10,000 threshold is not information sufficient to require the filing of a SAR.”

In plain English, this means you do not file a SAR just because something looks close to $10,000. A SAR is required only if you know, suspect, or have reason to suspect that the customer is intentionally structuring transactions to avoid CTR filing.

This clarification matters because the purpose of SARs is to capture suspicious intent, not numerical coincidence.

Still, it is not always easy to tell the difference. Distinguishing between a legitimate pattern of transactions and one designed to evade reporting takes skill, experience, and sound judgment. An untrained clerk or poorly tuned monitoring system can easily confuse the two, which leads to unnecessary filings or missed reports. Both can expose a business to risk.

That is why ComplyCheck’s compliance professionals personally review transactional patterns for each client. We know that not every $9,500 check is suspicious and not every customer breaking up money transmissions is structuring. Context and professional experience matter.

Continuing Activity Reviews and the 90-Day Myth

Another long-debated issue that FinCEN addressed is whether institutions must perform a 90-day review after filing a SAR to check if suspicious activity continued. For years, this was treated as a requirement, even though no regulation ever stated it.

FinCEN finally clarified the issue, stating:

“A financial institution is not required to conduct a separate review, manual or otherwise, of a customer or account following the filing of a SAR to determine whether suspicious activity has continued.”

This clarification eliminates one of the most common sources of wasted time in compliance programs. Many institutions were conducting repetitive 90-day reviews simply because they believed examiners expected it, even when nothing new had occurred.

FinCEN now confirms that as long as your monitoring systems are risk-based and designed to detect ongoing suspicious activity, you are not required to perform a separate follow-up review.

For MSBs, this is welcome news, but it also comes with a warning: your monitoring program must actually function properly. If your systems are not calibrated to detect continuing activity automatically, your compliance exposure remains high. ComplyCheck helps clients design and test risk-based systems that meet regulatory expectations while avoiding redundant manual reviews.

The 90-Day Timeline Clarified

FinCEN also addressed the long-standing “90-day rule” for continuing SAR filings. Over time, what began as a suggestion to file continuing activity reports every 90 days evolved into an assumed regulatory requirement.

The new guidance makes clear that the 90-day filing schedule is optional. Institutions can still use it if it fits their risk profile, but they are free to establish their own timelines as long as SARs are filed promptly and consistently.

FinCEN even included an example timeline for those who choose to follow the 90-day model: detect possible suspicious activity (day 0), file the SAR (day 30), observe for 90 days (ending on day 120), and file any necessary follow-up SAR by day 150.

This flexibility is good, but it also requires sound internal guidance. Without a clear internal standard, staff may either over-file or under-file. ComplyCheck helps MSBs establish practical and defendable internal timelines that ensure consistency and satisfy examiner expectations.

When No SAR Is Filed

Perhaps the most surprising clarification is FinCEN’s statement that financial institutions are not required to document every decision not to file a SAR.

“There is no requirement or expectation under the BSA or its implementing regulations for a financial institution to document its decision not to file a SAR.”

This clarification helps reduce unnecessary paperwork and compliance anxiety. Many institutions previously created extensive documentation every time they decided not to file, fearing future examiner scrutiny. FinCEN’s position now makes it clear that such documentation is not mandatory.

That said, FinCEN still encourages concise internal notes for complex or unusual cases. A short statement summarizing the reasoning is often sufficient.

ComplyCheck helps MSBs strike the right balance between efficiency and accountability. Our approach ensures that every decision—whether to file or not—is appropriately documented without wasting resources or creating unnecessary files.

Why These FAQs Matter for MSBs

Although the FAQs were developed in partnership with bank regulators, FinCEN specifically included Money Services Businesses (31 C.F.R. § 1022.320) in its coverage. This means that check cashers, money transmitters, and other MSBs are expected to apply these clarifications directly.

The changes bring several practical benefits to MSBs:

• Less unnecessary paperwork. You can stop filing “defensive” SARs for every near-threshold transaction.

• Reduced staff burden. There is no need for automatic 90-day follow-up reviews if your systems are already effective.

• More targeted monitoring. You can focus resources on true risk indicators such as structuring, fraud, and money laundering.

• Better regulatory relationships. Examiners value SARs that are well-supported and meaningful, not excessive.

This guidance promotes smarter, risk-based compliance instead of a mechanical, box-checking approach.

Over-Compliance and Under-Compliance

One of the biggest challenges we see at ComplyCheck is that many MSBs overreact to regulatory uncertainty. Some over-comply by filing on everything that looks even slightly unusual, while others under-comply by holding off until they are absolutely certain. Both approaches create risk.

Over-compliance wastes time and resources, floods FinCEN’s database with low-value SARs, and can make an examiner question whether your staff understands risk. Under-compliance can be far worse, exposing your business to penalties, findings of “failure to file,” and strained relationships with your bank or regulator.

FinCEN’s FAQs are intended to guide institutions toward the middle ground, but identifying that balance takes experience. ComplyCheck’s experts have the knowledge to interpret these gray areas, ensuring every SAR decision is defensible, proportional, and aligned with your risk profile.

How ComplyCheck Supports MSBs

Hundreds of MSBs rely on ComplyCheck to manage this balance effectively. Our role is to help you make confident, defensible SAR decisions that demonstrate your understanding of both compliance and practical business operations.

Our services include:

• Transaction monitoring reviews to ensure your systems are detecting meaningful activity.

• SAR decision support for borderline cases where judgment calls are necessary.

• Employee training on identifying and escalating red flags appropriately.

• Policy calibration to align your internal SAR procedures with FinCEN’s latest guidance.

• Independent reviews that demonstrate your program’s effectiveness to regulators and banks.

We provide structure, documentation, and regulatory confidence so you can focus on running your business without fear of overstepping or missing a filing.

A Step Toward Practical Compliance

FinCEN’s October 2025 FAQs reflect a more practical, risk-based approach to compliance. They emphasize quality over quantity, intent over habit, and understanding over blind procedure. For MSBs, this is an opportunity to streamline compliance operations, reduce inefficiency, and strengthen the relationship between your business, your bank, and your regulator.

But these clarifications only work if they are properly applied. Without professional guidance, it is easy to misinterpret flexibility as freedom and end up on the wrong side of a regulatory exam. ComplyCheck helps ensure your compliance program applies FinCEN’s guidance correctly and confidently.

Final Thoughts

The October 2025 FinCEN FAQs remind us of a simple truth:
Compliance is not about filing more; it is about filing smarter.

Whether your MSB handles $50,000 or $5 million a month, regulators expect you to apply judgment, document your reasoning, and ensure that every SAR adds real value.

If you are unsure whether your current SAR program meets these new expectations, ComplyCheck can help. We will review your monitoring systems, policies, and training to make sure your compliance program is effective, efficient, and ready for examination.