The narrative section in the Suspicious Activity Report (SAR) is the only free text area for describing the suspicious activity, making it the most vital portion of SAR. The purpose of the narrative part of SAR is to provide a clear and concise understanding of the suspicious activity and the reason for filing SAR.
The narrative should essentially answer the five ‘W’s:
- Who: Description of the client conducting the suspicious activity and other people involved in the suspicious transactions, including any incriminating information about the transactors.
- What: Identify the instruments or mechanisms used to facilitate criminal activity.
- When: Provide the timeline of the suspicious transactions.
- Where: Identify the location of transactions that the institution suspects violate the law.
- Why: Explain the reason for suspecting the transactions or the irregularity in the transactions.
The most poorly written narrative simply says ‘see attached files’ so avoid this mistake. Instead, the narrative should elaborate on the information provided in the preceding SAR data fields. A compelling narrative requires quick data capture, thorough research, and analysis of the data. Your institution can use tools like ScanWriter by Personable Inc for automat