Which statement about the SAR narrative is true?

• A. Explain why the activity is suspicious and why we are filing
• B. List the customer’s favorite movies
• C. Provide a detailed audit trail
• D. Reconcile the accounts

Answer: (A)

The SAR narrative serves to translate observed activity into a concise, defensible rationale for why the activity is suspicious and why a SAR is being filed. It should summarize the facts: dates, amounts, counterparties, locations, and the sequence of events, and highlight red flags or unusual patterns that raised concern. The goal is to show how these factors together indicate potential illicit activity, giving investigators a clear, logical basis for the filing decision. It must be factual, objective, and based on verifiable information, avoiding speculation about the person’s intent. Include references to supporting documentation or internal findings where relevant, so the narrative is testable and actionable.

The other options don’t fit because they don’t contribute to explaining the risk or the filing decision. Listing a customer’s favorite movies adds irrelevant information; a detailed audit trail is a separate type of record and not the narrative itself; reconciling accounts is an accounting task unrelated to describing why the SAR was filed.