What is a suspicious activity report (SAR)?

A suspicious activity report (SAR) is defined as a report filed by financial institutions when they suspect that a transaction may involve illegal activity, such as money laundering, fraud, or terrorist financing. This report is crucial because it helps law enforcement and regulatory agencies identify and investigate suspicious behaviors that could indicate criminal activity.

Filing a SAR is a regulatory requirement under the Bank Secrecy Act (BSA) and serves as an important tool for combatting financial crime. The information contained in a SAR can provide valuable insights into activities that need further scrutiny, thus playing a critical role in maintaining the integrity of the financial system.

In contrast, the other choices do not align with the definition of a SAR. Statements about customer satisfaction, employee performance, or financial reviews of bank accounts do not involve the specific focus on illegal activity and compliance with regulatory standards that characterize a SAR.