What happens when bank files SAR on you?

| by Max Soni

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience handling federal criminal defense cases. You’ve seen us in cases that made headlines – defending Anna Delvey in the Netflix series, handling the Ghislaine Maxwell juror misconduct case. If you’re reading this, your bank probably did something that has you worried – and you need to understand what a Suspicious Activity Report means for your future.

A SAR isn’t a criminal charge. But it’s often the first step toward one.

When your bank files a Suspicious Activity Report with FinCEN, they’re telling federal law enforcement that your financial activity looks wrong. Money moving in patterns that suggest laundering, structuring deposits to avoid reporting thresholds, transactions that don’t match your declared income – these trigger SARs. Once that report hits FinCEN’s database, it doesn’t disappear.

Your bank won’t tell you they filed one. They can’t – federal law makes it a crime for banks to tip you off. You’ll find out other ways. Your account gets frozen without explanation. You try to wire money and the bank suddenly refuses. An IRS agent shows up asking questions about transactions from two years ago. That’s when you know.

The bank filed within 30 days of detecting whatever they thought was suspicious – that’s what federal regulations require. By the time you realize something’s wrong, law enforcement has already been reviewing your financial history.

What Actually Happens After the Bank Files

FinCEN receives the SAR and distributes it to relevant agencies – FBI, IRS Criminal Investigation, DEA, Secret Service, depending on what the suspicious activity suggests. These agencies don’t investigate every SAR. They can’t – banks filed millions of them. Research from the Bank Policy Institute found that only 4 percent of SARs get any follow-up from law enforcement. Within that 4 percent, only a tiny fraction results in criminal charges.

But if your SAR lands in that 4 percent, you’re facing a federal investigation.

Federal agents build the case quietly. They pull your bank records – all of them, not just the transactions that triggered the SAR. They review other SARs filed on you by different banks. They examine your tax returns, looking for discrepancies between what you reported and what’s flowing through your accounts. They interview people you’ve done business with. They get search warrants for your emails, phone records, business documents.

This investigation can take months or years. You might not know it’s happening until agents execute a search warrant at your home, or until you receive a target letter informing you that you’re under investigation for money laundering, tax evasion, bank fraud, or whatever federal crime the SAR suggested.

The Crimes SARs Usually Lead To

Money laundering charges come up most often. Federal prosecutors love money laundering cases because they’re easier to prove than the underlying crime – you don’t need to prove someone sold drugs, you just need to prove they moved drug money in ways designed to hide its source. IRS Criminal Investigation uses SARs to build cases involving tax fraud, unreported income, and BSA violations. Money laundering carries up to 20 years in federal prison.

Structuring is another common charge – making deposits or withdrawals just under $10,000 to avoid automatic reporting requirements. Three deposits of $9,500 in a week triggers a SAR even if the money is completely legitimate. Federal law makes structuring itself a crime, regardless of whether the underlying money was legal. We’ve seen clients facing five years in prison for structuring perfectly legal business income because they didn’t understand banking regulations.

Tax evasion cases start with SARs showing income that doesn’t match tax returns. An IRS agent reviews the SAR, sees cash deposits that don’t appear on your 1040, and opens a criminal investigation. They’ll go back three years minimum, often longer. Criminal tax cases carry three years per count, plus massive fines.

Your Account Gets Frozen or Closed

Sometimes the bank doesn’t wait for law enforcement – they file the SAR and immediately freeze or close your account. Banks can terminate relationships with customers who pose compliance risks. You won’t get an explanation beyond vague statements about “business decisions.” The bank won’t tell you about the SAR because doing so would be tipping off.

Getting your money back takes time, sometimes months. You’ll need a lawyer to communicate with the bank, because anything you say could end up in a supplemental SAR. Your lawyer can find out whether there’s a government hold on the account – if there is, you’re definitely under investigation.

Other banks will reject you once they see the SAR activity in your history. When one bank files a SAR and closes your account, the next bank sees that.

What You Should Do

Don’t talk to your bank about why they closed your account or froze your funds. Bank employees aren’t on your side – they’re mandatory reporters. Anything you tell them gets documented, potentially goes into another SAR, and hands prosecutors evidence against you.

Don’t talk to federal agents without a lawyer, ever. If an FBI agent or IRS investigator contacts you, say nothing except that you want to speak with your attorney first. Don’t try to clear things up, don’t think you can talk your way out of an investigation. Federal agents are building a criminal case – every word you say helps them.

Hire a federal criminal defense lawyer immediately – not when you get indicted, the moment you suspect a SAR was filed. A lawyer can determine whether you’re under investigation, what agencies are involved, what charges you’re facing. Early intervention matters. We’ve kept clients from getting indicted by addressing prosecutor concerns before the grand jury gets involved.

Don’t file amended tax returns without legal advice. If the SAR involves unreported income, your instinct might be to file corrected returns. Don’t – that can be used as an admission against you. Document everything – bank statements, invoices, contracts – and give it to your lawyer. Don’t destroy anything. Obstruction charges carry serious prison time.

Why You Need Experienced Federal Defense Counsel

Federal money laundering and financial crime cases aren’t like state court matters. You’re dealing with agencies that have unlimited resources – IRS Criminal Investigation, FBI Financial Crimes units, prosecutors who specialize in complex financial cases.

We handle these cases because we understand how the government builds them. Our team includes former federal prosecutors who know how FinCEN data gets used, how agencies decide which SARs to investigate, what evidence they need for indictment. We’ve defended clients in money laundering cases, tax evasion prosecutions, Bank Secrecy Act violations – cases where SARs were the first investigative step.

Federal investigations that start with SARs move slowly until they don’t – then you’re getting indicted, your assets frozen, facing decades in federal prison. The earlier you get counsel involved, the more options you have.

At Spodek Law Group, we’ve been handling federal criminal cases for over 40 years. We’re available 24/7 because federal investigations don’t happen on business hours. If you think a bank filed a SAR on you, if your account got frozen, if federal agents contacted you – call us before you do anything else. Your financial freedom depends on getting this right.