When can financial institutions file SARs for continuing activity?

Filing Suspicious Activity Reports (SARs) for continuing activity is a critical aspect of a financial institution's compliance obligations under the Bank Secrecy Act (BSA). The choice of a 90-day review period reflects a best practice for monitoring ongoing suspicious behavior.

When a financial institution identifies suspicious activity, it often requires additional time to gather sufficient evidence and assess patterns of behavior before deciding on the necessity of a SAR. A review period of up to 90 days allows institutions to continue monitoring the activity, gather more data, and determine whether the suspicious behavior is indeed ongoing and has been mischaracterized or if further action is warranted. This timeframe allows for a more accurate and thorough evaluation of the situation, ensuring that the report filed is based on a complete understanding of the circumstances.

Timely and accurate reporting is critical, but rushing to file without a proper review process might lead to inadequate documentation or unnecessary reports that do not reflect the true nature of the activity, potentially overwhelming law enforcement with unsubstantiated filings. Thus, a structured approach with a review timeframe facilitates more effective compliance with regulatory obligations.

Immediate reporting upon detection might not always be feasible, particularly if the institution needs more information to substantiate the ongoing nature of the suspicious activity. Other