The timely filing of SARs is legally mandated, and financial institutions must follow jurisdiction-specific reporting deadlines.
Option A (Correct): Regulatory requirements dictate SAR filing deadlines (e.g., in the U.S., SARs must be filed within 30 calendar days of detecting suspicious activity).
Option B (Incorrect): 30 days is the U.S. standard, but different jurisdictions may have different SAR deadlines (e.g., EU AMLD mandates prompt reporting).
Option C (Incorrect): Complexity-based reporting delays are not permitted if they exceed regulatory timelines.
Option D (Incorrect): Relying solely on professional judgment rather than regulatory rules can lead to non-compliance.
SAR Filing Deadlines in Different Jurisdictions:
Jurisdiction SAR Filing Deadline
United States (FinCEN) 30 calendar days (60 days if no suspect is identified) United Kingdom (FCA/NCA) As soon as practicable European Union (6AMLD) "Promptly" (no fixed number of days) Australia (AUSTRAC) 3 business days for terrorism financing, 14 business days for other cases Why Timely SAR Filing Matters:
Delays in reporting can result in regulatory penalties.
Early SAR filing enables FIUs to take swift action against financial crime.
Non-compliance can lead to fines, criminal charges, and reputational damage.
Reference:
FATF Recommendation 20 (Reporting Suspicious Transactions)
FinCEN SAR Filing Requirements
6th EU Anti-Money Laundering Directive (6AMLD)