Suspicious Transaction Report (STR)
A filing alerting authorities about potentially illicit financial activity.
Detailed Description
Suspicious Transaction Report (STR)
What is the purpose of filing a Suspicious Transaction Report (STR)?
The purpose of filing an STR is to alert authorities about transactions that appear inconsistent with a customer's financial profile or raise red flags, aiding in the prevention and investigation of financial crimes.
Who is required to file an STR?
Banks, credit unions, mortgage companies, and real estate professionals are typically required to file an STR when they detect suspicious activities.
What are some examples of suspicious activities in real estate?
Examples include large cash payments without documentation, properties bought at unusual prices, or transactions involving parties reluctant to provide identification.
What are the legal implications of failing to file an STR?
Failing to file an STR can lead to fines, penalties, or even criminal charges for individuals or institutions that neglect their reporting obligations.
Which regulatory authority oversees the filing of STRs in the United States?
The Financial Crimes Enforcement Network (FinCEN) is the primary regulatory body overseeing STR filings in the United States.