Making SARs more effective
Broader based feedback needed
Measuring the current Suspicious Activity Report (SAR) effectiveness appraisal process is a large part of the answer to an ultimate question: How well is an anti-money laundering (AML) program working?
Money laundering laws (and their associated regulations) should be evaluated, at least in part, by how effective they are at facilitating criminal prosecutions. For that purpose, the Suspicious Activity Report (‘‘SAR’’) that must be filed when potential criminal or ‘‘unusual’’ activity is identified, plays an important role. Law enforcement can use the information and analsis in SARs to initiate or support investigations and prosecutions of criminal activity.
In order for SARs to be more effective, broader based feedback from law enforcement is needed by financial institutions.