SAR stands for what in AML reporting?

• A. Suspicious Activity Report
• B. Suspicious Account Review
• C. Structured Activity Record
• D. Standardized Audit Report

Answer: (A)

Suspicious Activity Report is the term used in AML reporting for a formal filing that financial institutions submit when they detect transactions or behaviors that may involve money laundering or related crimes. The report goes to the financial intelligence unit and remains confidential, with the goal of helping authorities investigate potential illicit activity. It typically includes who filed it, details about the customer or account, a narrative of the suspicious activity, dates, amounts, and supporting documentation. This isn’t just an internal review or a generic record; it’s a regulatory filing specifically for suspected illicit activity. The other options describe internal checks, generic records, or audits, none of which serve the formal AML reporting purpose.