Agencies issue guidance about suspicious activity reports on customer communications

The Financial Crimes Enforcement Network and banking agencies issued a joint statement clarifying that banks can still speak with customers about potential fraud, account closures or other suspicious activity, even though confidentiality rules apply to suspicious activity reports.

Last year, the Federal Reserve, FDIC, and Office of the Comptroller of the Currency asked the public for ideas on how to help consumers, businesses, and banks reduce the risk of payment fraud, especially check fraud. Some people were worried about whether bank staff could talk to customers if a suspicious activity report had been filed or might be filed about possible fraud.

The joint statement explains that, under the Bank Secrecy Act, banks cannot tell customers whether they filed a suspicious activity report. However, banks can still share the facts and documents behind their decisions with customers, even if someone might guess that a report was made. The statement gives examples, such as telling customers that a delay or restriction is due to fraud or other suspicious activity.