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Suspicious Activity Reporting Flashcards

6 cards from real CAMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Suspicious Activity Reporting flashcards as text

  1. Within how many calendar days must a financial institution file a Suspicious Activity Report (SAR) after initially detecting a suspicious transaction?

    Answer: 30 days

    U.S. financial institutions must file a SAR within 30 calendar days of initially detecting facts that may constitute a basis for filing; if no suspect is identified, this extends to 60 days.

  2. What is the minimum dollar threshold for SAR filing for a transaction involving a bank insider regardless of suspicion level?

    Answer: $5,000

    For transactions involving bank insiders (employees, officers, directors), the SAR filing threshold is $5,000, lower than the general $5,000 threshold but specifically applied to insider misconduct regardless of the transaction type.

  3. What is the 'safe harbor' provision in the context of SAR filings?

    Answer: Legal protection that shields financial institutions and their employees from civil liability when filing SARs in good faith

    The BSA's safe harbor provision (31 U.S.C. § 5318(g)(3)) protects institutions and employees from civil liability for disclosing suspicious activity in SARs filed in good faith, encouraging reporting without fear of customer lawsuits.

  4. A SAR filed with FinCEN is subject to strict confidentiality requirements. Which of the following is prohibited?

    Answer: Disclosing the existence of a SAR to the subject of the report

    Federal law prohibits 'tipping off' — disclosing to the SAR subject or any unauthorized person that a SAR has been or will be filed, as this could allow them to evade law enforcement.

  5. What are common red flags that may trigger a SAR filing for a retail banking customer?

    Answer: A customer whose transaction volume significantly exceeds what would be expected based on their stated occupation and account purpose

    Transactions that are inconsistent with a customer's known income, occupation, or stated business purpose are classic red flags indicating potential money laundering that may warrant a SAR.

  6. After filing a SAR, how long must a financial institution retain the SAR and supporting documentation?

    Answer: 5 years

    Financial institutions must retain SARs and all supporting documentation for five years from the date of the SAR filing, making these records available to regulators and law enforcement upon request.