Laura WilesThe UK Financial Intelligence Unit (UKFIU) – an independent unit within the National Crime Agency (NCA) – has published guidance on best practice for Suspicious Activity Reports (SARs).
The first two chapters explore how to use the SAR Portal and submit SARs to the UKFIU. These sections recap the principal money laundering and terrorist finance offences, and highlight the value of SARs, which play a critical role in alerting enforcement agencies to potential offences. They also run through the process of uploading a SAR to the Portal.
The third chapter aims to assist reporters seeking to use a defence against money laundering (DAML) or defence against terrorist financing (DATF). It clarifies that the NCA cannot grant a defence for activities that have already occurred, and that requests must be for future specified activities. The NCA may grant or refuse a request, but if no resposne is received by the end of the notice period (seven working days starting with the day the SAR is submitted), the reported is treated as having ‘appropriate consent’.
The guidance highlights a number of common mistakes by reporters, including not keeping the SAR Portal contact details up to date, or failing to respond to requests by the UKFIU for further information. It also stresses that the DAML process should not be used to seek guidance on business decisions, and that being granted a defence does not imply legitimacy of the funds involved.