Bank employees are required to fill out an SAR, or Suspicious Activity Report, when something about a transaction seems amiss. Which situations should an employee find suspicious? There are many indications that illegal activities may be occurring. If a young teenager comes into a bank with a paper bag full of money, this is suspicious activity requiring a report. If a teller notices many withdrawals, deposits or transfers occurring within a short amount of time, this is suspicious. Any large cash transaction must reported, whether it seems out of the ordinary or not.
This is not only a weapon that is useful for banks to discover crimes involving the financial world, but crimes on the international level such as terrorism or extortion and political corruption. Once a report is filled out, the proper governmental agencies will begin an investigation. No report goes unnoticed. Money laundering is just the by product of a previously committed act of crime, and therefore, these stiffer regulations have served to bring to an end many cases of drug dealing and trafficking, tax evasion, and any individual involved in smuggling or terrorism rings.
Any individual that cannot provide valid documentation that they are conducting legitimate business will be under suspicion. Money laundering is a world wide problem, and officials in the law enforcement agencies estimate that close to two trillion dollars a year is laundered in the international financial institutions. Another institution that must remain watchful, is any business that sells and redeems money orders or travellers checks, as well as institutions such as Western Union, who provide money transfers and wires daily. Money launderers have in the past been known to target such institutions. However know they too are required by the Bank Secrecy Act, to fill out reports on such transactions. Check cashing locations are still not required by law to fill out the SAR, but many are opting to do so anyway, as a measure of protecting themselves.
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