Why suspicious

What are they doing? A good description of the person s you have concerns about. What clothing are they wearing? Are they carrying anything? If you can get the registration mark of the vehicle write it down or type it into your phone as soon as possible to make sure it is accurate. The direction of travel of any person or vehicle.

Where are they going? All Advice and Information. The criteria for providing a SAR differs from country to country and even from institution to institution, depending on the nature of the suspicious activity and the particulars of the bank or fund.

First, if financial institutions believe an employee engaged in insider activity, they must file a report. However, it is not limited only to employees. Financial institutions monitor customer transactions, too.

If potential money laundering or violations of the BSA are detected, a report is required. Computer hacking and customers operating an unlicensed money services business also trigger an action. Once potential criminal activity is detected, the SAR must be filed within 30 days.

If more evidence is needed — such as identifying a subject involved — an extension not to exceed 60 days is available. Finally, SAR filings must be kept for five years from the date of the filing. Failure to comply with any of these regulations can result in civil and criminal penalties, including substantial fines, regulatory restrictions, loss of banking charter, and even imprisonment.

Many different types of financial industries require SAR reports, including banks and credit unions, stock and mutual fund brokers, and various money service businesses check cashing companies, money order providers, etc. However, casinos and card clubs, precious metals or gems dealers, insurance companies, and those involved in the mortgage business, all fall under the stipulations of the BSA.

If there is an opportunity for money laundering, tax evasion, or criminal financing within the day-to-day business of the institution, the organization and its employees are required to be aware of the rules and regulations around suspicious activity reports. A suspicious activity report can start with any employee within a financial institution. Employees are generally trained to flag and investigate suspicious activity. For example, if an employee notices an anonymous wire transfer of money out of the country or large amounts of money deposited into an account that had never seen such activity before, they would communicate their findings to supervisors who decide whether to file a report.

While most SARs come from the financial sector, law enforcement, public safety workers, city or state officials, business owners, and even the general public can submit a suspicious activity report. However, the use of intermediaries does introduce further parties into the transaction thus increasing opacity and, depending on the designation of the account, preserving anonymity.

Any apparently unnecessary use of an intermediary in the transaction should give rise to further enquiry. This means that the money will pass through a number of sources and through a number of different persons or entities.

Long-standing and apparently legitimate customer accounts may be used to launder money innocently, as a favour, or due to the exercise of undue pressure. Bearer securities, held outside a recognized custodial system, are extremely portable and anonymous instruments which may serve the purposes of the money launderer well.

Their presentation in settlement or as collateral should therefore alwaysprompt further enquiry as should the following:.