
Banks file Suspicious Activity Reports (SARs) when transactions appear unusual or inconsistent. Cannabis businesses are subject to enhanced SAR monitoring.
A Suspicious Activity Report (SAR) is a confidential report filed by a bank with federal regulators when activity appears unusual or high-risk.
Under the Bank Secrecy Act, banks must monitor and report suspicious transactions.
Cannabis businesses are subject to mandatory monitoring.
Because cannabis remains federally illegal:
Banks must file either:
These classifications reflect risk level.
SAR filings are confidential. Businesses are not notified.
A SAR does not automatically mean closure, but it increases scrutiny.