What is the threshold for filing a SAR regarding a suspicious $4,000 transaction?

The correct answer pertains to the requirement to file a Suspicious Activity Report (SAR) when there is a reasonable suspicion that a transaction involves criminal activity, regardless of the specific dollar amount. In this case, even though the transaction is $4,000, if there is credible belief that it indicates potential criminal behavior, a SAR should be filed. This obligation is guided by the principle that SARs are meant to help law enforcement agencies detect and prevent money laundering and other suspicious activities.

Under the Bank Secrecy Act, the threshold for mandatory SAR reporting is generally $5,000 for transactions that are suspicious; however, if there is suspicion of criminal activity, the reporting requirement takes precedence, highlighting that the nature of the transaction is more important than the dollar amount. This underscores the regulatory emphasis on the context of the transaction and the intent behind it.

Thus, in scenarios of suspicion, especially involving potentially illicit activities, filing a SAR is the appropriate course of action, which is why this option is justified as correct.