Finra
Under AML rules, a broker-dealer representative who files a SAR:
SAR filing: Safe harbor protection, NO tipping off customers. File within 30 days (60 if no suspect).
Complete Analysis & Legal Rationale
Safe harbor protection shields financial institutions and employees who file SARs in good faith from civil and criminal liability. It is actually prohibited to notify ("tip off") the customer about the SAR filing, and customer consent is never required.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Requires AML programs consistent with Bank Secrecy Act obligations (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.