Effective Suspicious Activity Reporting: A Guide for Financial Institutions

What Constitutes a Good SAR Narrative

When writing a Suspicious Activity Report (SAR), it’s essential to keep your narrative clear, concise, and focused on the most critical information. Here are some best practices to follow:

• Use simple language: Avoid technical jargon and complex sentences that might confuse readers.
• Be active in your voice: Use the present tense to describe the suspicious activity, making it easier for readers to understand the situation.
• Quote sparingly: Only include quotes if they’re directly relevant to the investigation. Be cautious not to misquote or twist words.
• Focus on key details: Prioritize the most important information and avoid unnecessary details that might dilute the report’s impact.

Do’s and Don’ts of a SAR

To ensure your SAR is effective, follow these guidelines:

DO:

• Keep reports confidential and only share them with those who need to know.
• Clearly state connections between clients if they’re relevant to the suspicious activity.
• Maintain a copy of the report after sending it to the Financial Intelligence Unit (FIU).
• Investigate transactions before drafting the report to ensure they’re suspicious.

DON’T:

• Write excessively long or detailed reports that might overwhelm readers.
• Repeat information unless it’s necessary for context.
• Use bullet points or “shopping lists” unless you’re listing specific transactions.

Quality vs Quantity

Rather than focusing on submitting a large number of SARs, prioritize writing high-quality reports that effectively identify suspicious activity. Aim to have 10% of Suspicious Transaction Reports (STRs) lead to investigations by FIUs. This approach demonstrates your commitment to preventing financial crimes and protecting your reputation.

By following these guidelines, you can help improve the effectiveness of SARs in preventing financial crimes and maintaining a strong reputation for your institution.