SIE Exam Question 31: Answer and Explanation

Question: 31

All of the following are true regarding a suspicious activity report (SAR) except:

• A. The deadline to file a SAR is 30 calendar days after becoming aware of any suspicious transaction or pattern of suspicious transactions or activities.
• B. You are protected from civil liability when you report suspicious activity.
• C. You are only required to file a SAR if you believe the activity is suspicious and involves $2,000 or more.
• D. You must tell the person involved in the transaction that a SAR has been filed.

Correct Answer: D

Explanation:

It is illegal to tell the person involved in the transaction that a SAR has been filed. The other three statements are true. The deadline to file a SAR is 30 calendar days after becoming aware of any suspicious transaction or pattern of suspicious transactions or activities. You are protected from civil liability when you report suspicious activity. You are only required to file a SAR if you believe the activity is suspicious and involves $2,000 or more.