When can unusual activity be reported to authorities?

The rationale for reporting unusual activity only after further investigation is based on the need to determine whether the activity is indeed suspicious or indicative of money laundering before alerting authorities. This approach helps ensure that valid transactions are not mistakenly flagged, reducing the risk of unnecessary investigative burdens on law enforcement.

However, in practice, it's advised that any unusual activity should trigger immediate reporting if there's a reasonable belief that money laundering or other criminal activity is taking place. Delaying a report until after extensive investigation may lead to a missed opportunity to prevent further illicit activities. Therefore, immediate reporting is often encouraged to protect the integrity of financial systems and assist in law enforcement efforts.

In contrast, other options suggest either reporting instantly without context, which may hinder legitimate business operations, or implying monetary thresholds for reporting, which may overlook smaller transactions that are also part of laundering schemes. The notion that unusual activity should never be reported runs counter to the principles of vigilance necessary for compliance with anti-money laundering regulations.