What is the primary purpose of filing a SAR?

The primary purpose of filing a Suspicious Activity Report (SAR) is to report suspicious activities to law enforcement. Financial institutions, including credit unions, are required by the Bank Secrecy Act (BSA) to monitor transactions and activities for signs of money laundering, fraud, or other monetary crimes. When a financial institution detects suspicious behavior that could indicate illegal activities or violations of the BSA, such as unusual transactions inconsistent with a customer's known activities or patterns, it must file a SAR.

Filing a SAR serves as a critical tool for law enforcement agencies to prevent, detect, and investigate potential criminal activities. This reporting creates a paper trail that can be used in investigations, aids in identifying criminal networks, and helps in gathering intelligence to combat financial crimes. By prioritizing the reporting of suspicious activities, financial institutions play a crucial role in enhancing national security and promoting the integrity of the financial system.