What type of transactions should trigger the filing of a SAR?

The filing of a Suspicious Activity Report (SAR) is required when there are transactions that are deemed suspicious or potentially indicative of criminal activity. This definition allows financial institutions to identify and report activities that could be linked to money laundering, fraud, or other illegal activities.

Transactions under $1,000, as presented in the first choice, do not automatically require a SAR unless there is an aspect of the transaction that raises suspicion. Long-term customers, as mentioned in the third choice, can also engage in transactions that are completely legitimate, and therefore do not necessitate a SAR simply based on their customer status. The requirement that all transactions over $10,000 warrant reporting, as stated in the last choice, refers primarily to the Currency Transaction Report (CTR) rather than a SAR. While large transactions can indeed be suspicious, it’s the suspicion of criminal activity that ultimately triggers the need for a SAR, emphasizing that not every high-value transaction indicates wrongdoing.

In summary, the focus on suspicious activity is crucial to the purpose of the SAR, which is to alert authorities to potentially illicit behavior rather than to track every high-value transaction or every transaction from a particular customer type.