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Failing to maintain confidentiality of Suspicious Activity Reports (SARs) can lead to heavy fines and penalties. This is because there are strict legal requirements in place designed to protect the confidentiality of SAR filings to encourage the reporting of suspicious transactions without fear of retaliation or disclosure. Organizations and individuals responsible for filing SARs must adhere to these confidentiality obligations under laws like the Bank Secrecy Act (BSA) and anti-money laundering regulations.

Violations can result in substantial financial repercussions, including fines that can reach tens of thousands of dollars. These penalties serve as a deterrent, ensuring that the financial system remains secure and that individuals who report suspicious activities do so with the assurance that their reports will be protected. Therefore, the correct choice emphasizes the serious financial risks associated with breaches of SAR confidentiality, reflecting the importance of compliance in the fight against money laundering and financial crime.