In which situation must a credit union file a SAR for transactions of $5,000 or more?

A credit union is required to file a Suspicious Activity Report (SAR) when it detects any suspicious transaction that involves $5,000 or more and has an identified suspect. The key aspect of this requirement is the suspicion of illegal activity, which triggers the obligation to report, rather than the size of the transaction alone. Even if the transaction meets the monetary threshold of $5,000, it must also raise suspicion related to potential money laundering, fraud, or other criminal activities.

Identifying a suspect means that there is a specific person or entity tied to the suspicious activity, which allows law enforcement to investigate further. This requirement is designed to enhance the ability of financial institutions to combat financial crimes effectively.

The other options do not align with the regulatory requirements for filing a SAR. Transactions above $10,000 are subject to a different reporting obligation under the Currency Transaction Reporting (CTR) requirements, not specifically for suspicious activities. Additionally, the obligation to file a SAR is not limited solely to cash transactions; it applies to any transactions, regardless of the method used. Finally, while client identification is a critical aspect of anti-money laundering compliance, a SAR must be filed based on suspicion, not merely because of a lack of identification.