Every person working in the regulated sector has a legal obligation to report suspicious financial activity that might indicate money laundering, known as making a Suspicious Activity Report (“SAR”).

If you work in the regulated sector, it is a criminal offence under the Proceeds of Crime Act 2002 ("POCA") to fail to report suspicious activity where there is knowledge or suspicion, or reasonable grounds for knowledge or suspicion, that another person is engaged in money laundering. Those outside of the regulated sector may also commit a criminal offence for a failure to report, the distinction being that this offence can only be committed with actual knowledge or suspicion.  

It is also an offence to disclose the fact that a SAR has been made, known as the “tipping off” offence.

Offences of failing to report and tipping off carry a maximum sentence of 5 years imprisonment.

Since the introduction of POCA the number of SARs has significantly increased.  According to figures published by the Serious and Organised Crime Agency the number of SARs filed in 2002 was 64,164; in 2010 that figure was 240,582 with a gradual rise in reports from the banking sector.  The submission of a SAR provides a defence to the principal money laundering offences.

We can assist with:

• Providing advice on whether a payment or transaction needs to be reported
• Assist in filing the appropriate reports
• Providing advice as to whether a payment or transaction requires consent by way of an authorised disclosure
• Assist in filing an authorised disclosure