Which statement about SAR filings is supported by the material?

• A. To alert regulators to possible criminal actions including money laundering
• B. To document internal control failures
• C. To authorize transactions
• D. To punish customers

Answer: (A)

SAR filings are designed to alert regulators to possible criminal actions, including money laundering. When activity seems suspicious, an insurer or financial institution files a SAR with the appropriate regulator, providing details to help law enforcement investigate and potentially prosecute. This mechanism helps detect money laundering schemes that may involve multiple parties. It is not used to document internal control failures, authorize transactions, or punish customers, and the information is kept confidential, shared only with regulators and law enforcement under strict rules.