How do financial institutions determine the fate of an account after filing a SAR?

Financial institutions determine the fate of an account after filing a Suspicious Activity Report (SAR) primarily based on their own standards and risk appetite. This involves their internal policies regarding risk management, compliance frameworks, and operational considerations. Each institution has its unique risk tolerance and assessment processes that guide their decision-making when it comes to managing accounts flagged for suspicion.

While customer history may play a role in the assessment, it is not the sole deciding factor. Regulations do provide a framework within which institutions must operate, but they also leave significant discretion to the institutions themselves to evaluate situations based on their specific contexts. Consulting other financial institutions is not a common practice since each institution must take responsibility for its assessment and the actions it decides to take after filing a SAR. Ultimately, the decision is tailored to the institution's comprehensive risk strategy and compliance measures.