Which of the following is a characteristic of a Suspicious Activity Report (SAR)?

A Suspicious Activity Report (SAR) is specifically designed to alert authorities to potential illegal activities, such as money laundering, fraud, or other suspicious transactions. Financial institutions are required to file a SAR when they detect certain suspicious behavior or transactions that may indicate criminal activity. This emphasis on activities suspected of being illegal is key to the SAR's role in combating financial crimes, and it signals to law enforcement that further investigation may be warranted.

Other options do not accurately describe the nature and requirements surrounding SARs. For instance, SARs are mandatory for financial institutions when suspicious activity is identified, and they are not filed based on all transactions, nor are they annual filings; rather, they are submitted as needed based on specific occurrences of suspected illegal activity. This focus on particular incidents of suspicious behavior underscores the form's intent and necessity within the framework of BSA compliance.