Suspicious Activity Report and Suspicious Transaction Report: A Complete Guide for Businesses and Financial Institutions
In today’s rapidly evolving financial landscape, maintaining strict vigilance against money laundering, fraud, terrorist financing, and other illegal financial activities is essential. Two powerful tools used globally for this purpose are the Suspicious Activity Report (SAR) and the Suspicious Transaction Report (STR) . Although the terms are often used interchangeably, they have specific meanings depending on jurisdiction and regulatory frameworks. This blog explains what SAR and STR are, why they matter, how they differ, and what organizations need to know to stay compliant. What is a Suspicious Activity Report (SAR)? A Suspicious Activity Report (SAR) is a confidential document submitted by financial institutions and certain regulated businesses to report any behavior or activity that may indicate illegal financial activity. Activities don’t always need to involve a transaction—sometimes, the behavior alone is enough to trigger suspicion. Common Triggers for SARs Sudden changes...