According to the BSA/AML Manual1, once a financial institution files a SAR, it should maintain a copy of the SAR and the original or business record equivalent of any supporting documentation for a period of five years from the date of filing the SAR. The supporting documentation should be identified and maintained by the financial institution as such, and be deemed to have been filed with the SAR. The financial institution should make all supporting documentation available to FinCEN or any federal, state, or local law enforcement agency, or any federal regulatory authority that examines the financial institution for compliance with the BSA, upon request. Therefore, the best action to take regarding a particular account once suspicious activity is reported by the institution is to secure all supporting documentation, as it may be needed for further investigation or examination.
BSA/AML Manual1
Suspicious Activity Reporting - Overview2
Suspicious Activity Report (SAR) Basics3

In theEuropean Union (EU), data protection laws (GDPR) and AML regulations (AMLDs) must be balancedwhen sharing customer data.
Option D (Correct):Data sharing must be"necessary, reasonable, and proportionate,"followingAML regulations and data protection requirements.
Option A (Incorrect):While data protection laws apply,AML/CFT regulations provide exemptionsfor legitimate investigations.
Option B (Incorrect):Aformal production orderis not always required if information sharing islegally permitted under AML regulations.
Option C (Incorrect):Privacy laws still apply, even in financial crime investigations. AML/CFT obligations donot override GDPRbut must be balanced appropriately.
Key Considerations in Cross-Border AML Data Sharing in the EU:
GDPR & AML Regulations Must Align:TheGeneral Data Protection Regulation (GDPR)protects customer privacy, but theEU Anti-Money Laundering Directives (AMLDs) require data sharing for AML purposes.
Proportionality Principle:Anydata shared must be strictly limited to what is necessaryfor AML purposes (e.g., transaction details but not unnecessary personal data).
Regulatory Guidance:Banks must comply withArticle 23 of GDPR, which allowsexceptions for AML compliance.
Why This Matters:
Failure toproperly balance AML compliance and data privacycan lead to:
Regulatory fines under GDPRfor data breaches.
AML penaltiesfor failing to cooperate in financial crime investigations.
Reference:
6th EU Anti-Money Laundering Directive (6AMLD)
General Data Protection Regulation (GDPR), Article 23
EBA Guidelines on AML and Data Sharing in the EU

MSBs arevulnerable to financial crimedue to theircash-intensive natureandremittance services.
* Option D (Correct):Hesitation to provide beneficiary detailssuggestsanonymity concerns, a common money laundering tactic.
* Option E (Correct):Usingmultiple accounts under different namesis aknown structuring techniquetoevade detection.
* Option A (Incorrect):Exchanging foreign currency is normal, though higher-risk transactions require monitoring.
* Option B (Incorrect):Cash deposits are expectedin MSBs but needadditional risk factorsto be considered suspicious.
* Option C (Incorrect):Frequent small transfersmay be normal forremittance businesses.
Reference:FATF Red Flags for MSBs, Wolfsberg Group Risk-Based Approach for MSBs, FinCEN Guidance on MSB AML Programs.

Economic sanctionsare used as anon-military toolto enforceforeign policy and national security objectives.
Option D (Correct):Sanctions aim tochange the behaviorof entities engaged inmoney laundering, terrorist financing, or other illicit activities.
Option A (Incorrect):Sanctions do not necessarily indicatemilitary action.
Option B (Incorrect):NGOs may be exempt from sanctions, but this is not their primary purpose.
Option C (Incorrect):Whilehuman rights concernscan lead to sanctions, they are primarily imposed tochange behavior.
Reference:OFAC Sanctions Guidance, UN Security Council Sanctions List, EU Sanctions Regulations.

Lawyers and legal professionals are frequently used in money laundering schemes, particularly through trust accounts that offer anonymity and client privilege protections.
Option A (Correct): Repeated wire transfers from unknown sources followed by immediate outward transfers suggest that the lawyer's trust account is being used as a pass-through account for laundering funds.
Option B (Incorrect): If legal services were actually rendered, this is a normal transaction unless other risk factors exist.
Option C (Incorrect): Receiving funds from a regulated insurance company is not inherently suspicious, unless the transaction is inconsistent with the lawyer's usual business activity.
Option D (Incorrect): Large transactions are normal in real estate purchases, as long as proper documentation exists.
Red Flags in Legal Sector Money Laundering:
Use of lawyer trust accounts to move funds with no legitimate business purpose.
Frequent transactions from high-risk jurisdictions.
Transactions that are inconsistent with the lawyer's area of practice.
Clients who refuse to disclose the source of funds.
Best Practices:
Apply AML measures to law firms handling financial transactions, as required by FATF's Designated Non-Financial Businesses and Professions (DNFBPs) guidelines.
Require enhanced due diligence (EDD) for high-risk clients and unusual transactions.
Reference:
FATF Report on Legal Professionals & Money Laundering
Wolfsberg Group Legal Sector AML Guidance
6th EU Anti-Money Laundering Directive (6AMLD) on DNFBPs