To avoid being sued by customers over suspicious activity report, or SAR, filings, banks should closely follow the anti- laundering rules, the Federal Reserve Board warned in a letter being sent to all holding companies.

Several recent court cases have found that banks that deviate even slightly from the rules may lose their immunity from invasion-of-privacy suits, the Fed said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.