[1] The Financial Action Task Force's Recommendations are widely recognized as the international standard in anti-money laundering and countering financing terrorism with endorsements from 180 nations.
[2] FATF Recommendations set forth essential measures to combat money laundering and to protect domestic and international monetary systems including the application of preventive measures for the financial sector and other designated sectors; and the establishment of powers and responsibilities for the relevant competent authorities (e.g., investigative, law enforcement and supervisory authorities), including guidelines regarding suspicious activity reports.
The goal of SAR filings is to help the government identify individuals, groups, and organizations involved in fraud, such as terrorist financing, money laundering, and other crimes.
In many instances, SARs have been instrumental in enabling law enforcement to initiate or supplement major money laundering or terrorist financing investigations and other criminal cases.
[8] Information provided in SAR forms also presents governments with a method of identifying emerging trends and patterns associated with financial crimes.
For example, in the United States, FinCEN requires businesses and individuals to report:[9][10] In most countries, unauthorized disclosure of a SAR filing is an offense.
[11][12] Financial institutions are required to undertake an investigation process prior to filing a SAR to ensure that the information reported is appropriate, complete, and accurate.
[14][15] In most countries financial institutions and their employees face civil and criminal penalties for failing to properly file suspicious activity reports, including any combination of fines,[16] regulatory restrictions, loss of banking charter, or imprisonment.