Governance
Suspicious Activity Report (SAR)
A Suspicious Activity Report (SAR) is the regulator-mandated filing financial institutions submit when transactions match patterns of money laundering, fraud, or sanctions evasion. AI in SAR workflows is used for transaction triage, narrative drafting, and false-positive reduction — but the filing decision and signature remain with a human compliance officer. Pure-AI SAR generation is not regulator-acceptable.
Related terms
- AI Compliance — AI compliance is the demonstrable conformance of AI deployments to applicable laws and standards — GDPR, PIPEDA, the EU AI Act, NIST AI RMF, ISO/IEC 42001, sector-specific rules in healthcare, finance, and government.
- Fraud Detection (AI) — AI fraud detection uses ensemble models — rule-based screens, classical machine learning, and large language models — each catching what the previous layer missed.