Suspicious activity report (SAR)
Definition
A disclosure filed with the financial intelligence unit when a reporting entity knows, suspects, or has reasonable grounds to suspect that a transaction or account is related to money laundering or terrorist financing. Called a Suspicious Transaction Report (STR) in some jurisdictions. In India, reported to the Financial Intelligence Unit-India (FIU-IND).
Related terms
- Beneficial ownership
- The natural person(s) who ultimately own or control a legal entity or arrangement, or on whose behalf a transaction is conducted. FATF...
- Customer due diligence (CDD)
- The process of identifying and verifying the identity of a customer and their beneficial owner, understanding the purpose of the business relationship,...
- FATF Recommendations
- The 40 international standards issued by the Financial Action Task Force that set out the measures countries should implement to prevent money...
- Mutual Evaluation Report (MER)
- An assessment of a country's compliance with the FATF Recommendations, conducted by FATF-style regional bodies or by FATF itself. Published publicly. Identifies...
- Transaction monitoring system (TMS)
- An automated system that screens transaction data against a library of typologies and thresholds to generate alerts for potential money laundering. A...
Explained in
- AML Compliance Audits and FATF StandardsA disclosure filed with the financial intelligence unit when a reporting entity knows, suspects, or has reasonable grounds to suspect that a transaction or acc...