What type of report is generated to monitor potential financial crime?

A suspicious activity report (SAR) is specifically designed to monitor and address potential financial crimes. When organizations, especially those in the financial sector, detect unusual or suspicious transactions that may indicate illegal activities such as money laundering, fraud, or terrorist financing, they are required to file a SAR with the relevant authorities. This report ensures that law enforcement and regulatory bodies can investigate and take appropriate action on such activities.

The other types of reports listed serve different purposes. An annual financial summary provides an overview of an organization's financial performance over the year and does not focus on suspicious activities. A financial audit report assesses the accuracy of financial statements and compliance with accounting standards, lacking a direct focus on identifying criminal activity. A market analysis report evaluates economic conditions and market trends, which is unrelated to monitoring potential financial crime. Thus, the suspicious activity report uniquely fulfills the need to identify and report suspected illegal financial transactions.