Which type of reports must be submitted to the Financial Crimes Enforcement Network (FinCEN)?

The correct answer is that Suspicious Activity Reports (SARs) must be submitted to the Financial Crimes Enforcement Network (FinCEN). This requirement stems from the Bank Secrecy Act (BSA), which mandates financial institutions to report certain suspicious activities that could signify money laundering, fraud, or other financial crimes. SARs are crucial tools in the efforts to detect and combat these illegal activities, allowing regulatory authorities to analyze patterns and trends that may indicate criminal behaviors.

When a financial institution detects suspicious behavior, such as unusual transactions or patterns that do not match a customer's normal activities, they must file a SAR within a specified time frame. This information is vital for law enforcement agencies and helps in building cases against potential criminal activities.

Other types of reports, such as loan application summaries and customer feedback reports, do not fall under the regulatory requirements imposed by FinCEN for reporting illicit activities. Annual compliance reports may be relevant for a company's internal auditing and compliance practices but are not submitted to FinCEN in the context of reporting suspicious activities.