What is a Suspicious Activity Report (SAR?)
A Suspicious Activity Report (SAR) is an important part of transaction monitoring.
Financial institutions are duty-bound to report a suspicious transaction by a client when it has been detected. In most countries, this is via the submission of a SAR to the relevant financial authority within 30 days or a month of detection. This may be extended by a further 60 days two months if more evidence is required.
SARs are also required if a financial institution notices that an employee has acted suspiciously or if their IT has been compromised in any way.
Which situations require a Suspicious Activity Report to be written?
A SAR may need to be written when there is suspicious activity on an account. This might include:
- Large deposits or withdrawals
- Large domestic or international transfers
- Large transactions
- Unusual transactions
For more information, please refer to Transaction Monitoring.
