Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

A Suspicious Activity Report (SAR) must be filed when a financial institution detects a transaction that may involve money laundering or other illegal activity. The threshold for filing a SAR in the context of electronic funds transfers is specifically set at $5,000.

This amount is significant because it represents the minimum threshold that prompts the need for further scrutiny and reporting. Transactions below this figure are generally not deemed suspicious enough to warrant a SAR unless there are other compelling circumstances present. By establishing a $5,000 limit, regulators aim to focus attention on more substantial risks, thereby optimizing resources and encouraging institutions to monitor transactions effectively.

The other amounts mentioned, such as $10,000, $15,000, or $20,000, do not align with the regulatory requirements for SAR filing concerning potential money laundering in electronic funds transfers. Therefore, they do not meet the established criteria set forth by authorities to ensure that financial institutions can effectively combat money laundering activities.