Can a borrower be informed that a Suspicious Activity Report (SAR) has been filed against them?

The correct response is that SAR information is confidential for five years. A Suspicious Activity Report (SAR) is filed by financial institutions when they discover potentially suspicious activity that might indicate money laundering or other financial crimes. One of the fundamental principles guiding SAR filings is that the information contained within is confidential. This confidentiality is enforced to protect ongoing investigations and to prevent tipping off the person involved, which could compromise the effectiveness of law enforcement efforts.

The five-year confidentiality period means that during this time, the institution is prohibited from disclosing the fact that a SAR has been filed, including to the borrower in question. This ensures that the integrity of the investigation remains intact and that law enforcement agencies can carry out their inquiries without jeopardizing their work or alerting potential wrongdoers.

While there may seem to be circumstances under which a borrower could be informed about a SAR, the regulations explicitly prevent this for a specified period, emphasizing the importance of confidentiality in financial investigations.