Which act established the requirement for financial institutions to file SARs?

The requirement for financial institutions to file Suspicious Activity Reports (SARs) is established under the USA PATRIOT Act. This legislation was enacted in response to the events of September 11, 2001, with the primary aim of enhancing national security and preventing money laundering and terrorist financing. The act expanded the existing Bank Secrecy Act (BSA) framework, requiring financial institutions to report certain types of activity that may indicate potential illegal activities, such as money laundering or terrorism funding.

SARs play a critical role in the financial system by enabling law enforcement agencies to address illicit activities more effectively. By mandating financial institutions to report suspicious transactions, the USA PATRIOT Act helps ensure that these institutions actively participate in the detection and prevention of financial crimes, thus contributing to the broader efforts of combating terrorism and financial fraud.

The other acts listed do not involve the requirement for SARs. The Truth in Lending Act focuses on consumer credit, the Fair Housing Act deals with housing discrimination, and the Consumer Financial Protection Act aims to promote fair and transparent consumer financial products.