BANKS MUST BE VIGILANT IN IDENTIFYING AND REPORTING SUSPICIOUS ACTIVITIES

As financial institutions, banks play a crucial role in preventing and detecting money laundering and other financial crimes. One of the key tools in their arsenal is the Suspicious Activity Report (SAR), which allows them to flag and report transactions that may be indicative of illicit activity.

Common Types of Suspicious Activities

Banks look out for a range of suspicious activities, including:

• Large Cash Transactions: Transactions that exceed certain thresholds
• Structuring: Breaking down larger transactions into smaller amounts to avoid triggering reporting requirements
• Unusual or Unexplained Transactions: Transactions that are inconsistent with a customer’s known financial profile
• Transactions Involving High-Risk Customers: Customers from sanctioned countries or individuals, politically exposed persons (PEPs)
• Cybersecurity Threats: Attempts to access customer accounts or transfer funds without authorization

The Process of Investigating and Responding to Suspicious Activity Reports

When a bank identifies suspicious activity, it is required to file a SAR with the relevant regulatory authority. The SAR provides information about the suspicious activity, including the customer involved, the type of activity, and any other relevant details.

Here are the steps involved in investigating and responding to SARs:

1. Review and Analyze: The bank’s compliance team will review the SAR and analyze the information provided to determine the validity of the report and the appropriate response.
2. Investigate: If the SAR is determined to be valid, the bank will conduct an investigation to gather additional information about the suspicious activity, including reviewing customer records, transaction history, and any other relevant data.
3. Determine Risk: Based on the investigation, the bank will determine the level of risk associated with the suspicious activity and determine the appropriate response. This may include closing the account, freezing assets, or reporting the activity to law enforcement.
4. Report to Authorities: If the bank determines that the suspicious activity is related to money laundering, terrorist financing, or other criminal activity, it will file a report with the relevant regulatory authorities and law enforcement agencies.

AML Solutions for Banks

Sanction Scanner provides AML solutions for banks, such as Transaction Monitoring or AML Screening, to instantly monitor or screen transactions in banks and other financial institutions and warn AML employees by alarming suspicious transactions with its dynamic rule feature. When AML employees examine the warnings and realize that there is a really suspicious situation, they prepare a SAR file about this process and submit it to the necessary authority institution. With Sanction Scanner, it is very easy to check suspicious transactions and speed up the process safely.

By staying vigilant and using the right tools, banks can effectively identify and report suspicious activities, helping to prevent financial crimes and maintain the integrity of the global financial system.