SAR (Suspicious Activity Report)

A Suspicious Activity Report (SAR) is a document financial institutions file with government authorities when they detect transactions or behaviors that may indicate illegal activities like money laundering, fraud, or terrorism financing. It serves as a warning sign to regulators, helping them investigate potential crimes. Filing a SAR is a legal obligation for banks and financial firms to promote transparency and prevent misuse of the financial system, ensuring that suspicious activities are monitored and acted upon appropriately.