Over £300m denied to suspected criminals by suspicious activity reports
Nearly 1 million suspicious activity reports (SARs) were made to law enforcement by professionals in 2021/22, according to the UK Financial Intelligence Unit (UKFIU).
According to its 2022 SARs report (PDF 1.1 MB), the UKFIU received and processed 901,255 SARs in 2021/22 – a 21% increase on the previous year.
The legal profession contributed to the rise, with the UKFIU reporting that 29% more SARs were submitted by legal professionals in 2021/22 compared to the previous year.
Of these, 2,052 SARs were made by solicitors. A further 1,160 SARs were requests from solicitors and firms for defences against money-laundering (DAMLs).
Your money-laundering obligations
If you work in the regulated sector, your firm’s money-laundering reporting officer (MLRO) must make a SAR if they:
- know or suspect, or
- have reasonable grounds for knowing or suspecting
that a person is engaged in money laundering.
Your MLRO must ask the National Crime Agency (NCA) for a DAML if you know or suspect that you or your firm will be dealing with criminal property in a way that may amount to a money-laundering offence.
How you’re making a difference
An estimated £305.7 million was denied to suspected criminals as a result of DAML SARs.
The UKFIU credited the “impressive increase in funds denied” to a growing number of high-value DAML reports, as well as improvements in the quality of DAMLs being made.
These findings demonstrate the important role that solicitors play in the fight against money laundering.
By reporting suspicions of money-laundering, you are helping to improve the quality of intelligence received by law enforcement agencies.
How the Law Society can support you and your firm
The Law Society has a range of resources that can help you and your firm to detect and prevent money-laundering.
Attend the Law Society’s hybrid Risk and Compliance Conference on Friday 17 March to learn from industry experts how to minimise risk and keep your business safe and compliant.
Topics covered will include:
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- anti-money laundering (AML)
- economic crime
- business ethics
Book your place to attend in person or watch the livestream.
The Legal Sector Affinity Group AML guidance for the legal sector is a comprehensive guide to best practice on AML issues.
Make sure you understand your obligations
Helping you with anti-money-laundering compliance
Explore the Law Society’s guide to suspicious activity reports, which covers:
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- when and how to make a SAR
- what to include
- how to request a DAML
- what happens if you fail to report suspicious activity to the NCA
The Law Society’s guidance also sets out how to report suspicions of money-laundering to your firm’s MLRO. Learn how to report a client or third party.
Want to learn more and test your knowledge? This 30-minute learning module will help you understand how your firm may be targeted and the steps you can take to identify suspicious instructions.
The SARs regime is being reviewed to improve the quality and quantity of AML reporting. Find out what’s changing.
Kindly shared by The Law Society of England and Wales
Main article photo courtesy of Pixabay
