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The full form of STR is Suspicious Transaction Reporting. In the world of finance, the STR plays a crucial role in preventing money laundering and overseeing financial regulation. Financial institutions file this document whenever the officers suspect a case of money laundering or fraud. Interestingly, the criteria to file an STR differs from country to financial institution and depends on numerous factors.
Also Read: What is the Full Form of ST?
Types of STR
Table of Contents
There is a wide range of types of suspicious activities or transactions in the financial world. Money laundering usually happens through:
- Cash transactions
- Bank accounts
- Investments
- Offshore International
- Lending (secured and unsecured)
- Abnormal transactions
What is the Minimum Amount for STR?
Interestingly, there is no minimum amount set for suspicious transaction reporting.
Also Read: What is the Full Form of SPV?
Examples of Suspicious Transactions
Below we have listed a few commonly occurring suspicious transactions through which money is generally laundered in the market. Let us take a look at them:
- Transactions that are not in accordance with the income levels of the customer.
- Sudden transactions or investments in significant amounts.
- Increasing frequency of transactions
- Shorter duration of holding securities
- Transfer of huge funds from a third party
What is the Full Form of SAR?
In the world of finance, the full form of SAR is the Suspicious Activity Report. It is pretty much like the Suspicious Transaction Report (STR) which is made by any financial institution upon the detection of potentially suspicious activity regarding money laundering, finance terrorism, and other finance-related crimes. The primary difference between SAR and STR is that the former looks at the activity on the grounds of suspicion whereas the latter looks at transactions that exceed the general criteria.
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