What transaction amount typically triggers a requirement for a suspicious activity report (SAR)?

A suspicious activity report (SAR) is required for transactions that raise suspicions of possible money laundering or other financial crimes. The correct threshold for triggering a SAR is based on the nature of the transaction and other contextual factors associated with it.

The requirement for reporting suspicious transactions specifically states that a financial institution must file a SAR when the amount involved is $5,000 or more and there are indicators suggesting that the transaction is suspicious. This amount reflects the regulatory agencies' objective of monitoring significant transactions that could potentially relate to illicit activities.

Transactions below this threshold may not necessitate a SAR; hence, $1,000 and lower amounts do not typically meet the reporting criteria established by the authorities. Similarly, while $10,000 or $15,000 are significant amounts, they exceed the minimum threshold for requirements and may cause confusion regarding the actual trigger point for SAR filing.