How long must a Suspicious Activity Report (SAR) be retained after it is filed?

The correct answer is that a Suspicious Activity Report (SAR) must be retained for a minimum of five years after it is filed. This requirement is established by the Bank Secrecy Act (BSA) and further reinforced by regulations from the Financial Crimes Enforcement Network (FinCEN). The five-year retention period allows financial institutions and regulators to maintain records that can be critical for investigations into potential financial crimes, such as money laundering or fraud.

This time frame is designed to ensure that adequate documentation exists for law enforcement agencies to review if they are conducting inquiries related to suspicious activities that were reported. By retaining these reports for five years, institutions are better able to support investigations and comply with legal obligations, thereby helping to maintain the integrity of the financial system.