Which report is crucial for alerting law enforcement about potential money laundering activities?

The Suspicious Activity Report (SAR) is the critical document that helps notify law enforcement agencies about potential money laundering activities. When a financial institution observes transactions that appear unusual or raise red flags, they are required to file a SAR. This report provides detailed information about the suspicious activity, including the nature of the transaction, the parties involved, and the reasons for suspicion. It serves as a vital tool for authorities in identifying, investigating, and prosecuting money laundering and other financial crimes.

While the Financial Review, Transaction Report, and Risk Assessment are important for various purposes within financial institutions—from internal assessments to compliance reporting—they do not specifically serve the purpose of formally alerting law enforcement to suspicious activities as the SAR does. The SAR is essential in the broader context of anti-money laundering efforts and financial crime prevention, making it a cornerstone in the fight against illicit financial activities.