What document might a bank file if they suspect a customer is involved in money laundering?

A bank files a Suspicious Activity Report (SAR) when it suspects that a customer is involved in activities such as money laundering. The SAR is a critical compliance tool under the Bank Secrecy Act (BSA) that financial institutions use to report potentially suspicious behavior to the Financial Crimes Enforcement Network (FinCEN). It allows banks to document and communicate their concerns about unusual transactions that could indicate illegal activities, including money laundering.

By filing a SAR, banks fulfill their legal obligation to report such activities, thereby helping to combat financial crime and protect the integrity of the financial system. This process involves a detailed account of the suspicious transaction, including information about the involved parties, the nature of the activity, and any relevant context that could illustrate why the transaction is considered suspicious.

In contrast, the other documents listed do not serve the same function. A Customer Feedback Report typically collects customer opinions and experiences, and a Transaction Review Document is more focused on analyzing specific transactions without the formal compliance reporting requirement of a SAR. A Compliance Assessment Report evaluates a bank's adherence to regulations and internal policies but does not specifically address suspicious activities. Thus, the SAR is the distinct document tailored for reporting possible money laundering scenarios.