What is the threshold amount for triggering a Suspicious Activity Report (SAR)?

The threshold amount for triggering a Suspicious Activity Report (SAR) is $5,000 or more. This amount is significant because it establishes a financial benchmark that financial institutions must monitor to detect potential money laundering, fraud, or other illicit activities. If a transaction involves $5,000 or more and there is a suspicion that the funds are tied to illegal activities, financial institutions are required to file a SAR with the Financial Crimes Enforcement Network (FinCEN). This requirement is part of the Bank Secrecy Act (BSA) regulations, which aim to prevent financial crimes and protect the integrity of the financial system.

While lower amounts may also represent suspicious activity, the $5,000 threshold is a defined point that specifies when a bank must take formal action by filing a SAR. Institutions are advised to use their risk assessment and knowledge of their customers and communities to determine what other suspicious behaviors might be indicative of financial crime, even if they fall below this amount.