Suspicious-Transaction Report Law and Legal Definition

Suspicious-transaction report refers to the information demanded by Internal Revenue Service from banks and other financial institutions regarding suspicious transactions. For example, violation of violation of bank Secrecy Act or violation suggesting tax evasion or money laundering.

The following persons and entities and their employees must report suspicious transactions to IRS:

financial entities (includes banks, credit unions, caisses populaires, trust and loan companies and agents of the Crown that accept deposit liabilities);

life insurance companies, brokers or agents;

securities dealers, portfolio managers and investment counsellors who are provincially authorized;

money services businesses including foreign exchange dealers and alternative remittance systems;

accountants and accounting firms when carrying out certain activities on behalf of their clients); and

real estate brokers or sales representatives when they act as an agent regarding the purchase or sale of real estate.