The number of Suspicious Activity Reports (SARs) submitted by estate agents increased by 30% in 2022/2023 compared to the previous year, new research shows.

Last year, estate agents completed 950 SARs and 471 Defence Against Money-Laundering (DAML) SARs, making a combined total of 1,421. This is up from 1,094 in 2021/2022 (780 SARs and 314 DAML SARs), according to recent data from Thirdfort.

This continues the overall trend in the industry, which has seen a steady growth in the number of SARs estate agents have submitted in recent years. Figure show that in 2020/2021, estate agents submitted a total of 948 SARs (680 SARs and 268 DAML SARs).

However, despite the increase, the number of SARS submitted by estate agencies in the UK remains relatively small.

Data from the Office for National Statistics (ONS) reveals that there are 24,965 estate agencies operating in the country, and the sector is considered at ‘medium’ risk for money laundering by HM Treasury and the Home Office.

Harriet Holmes, AML Services Manager at Thirdfort, said: “Our analysis shows a positive increase in the amount of SARs submitted by the sector. This is significant, given the important role that agents play as gatekeepers in the regulated sector. It ultimately supports protecting society from fraud and money laundering.

“While SARs submissions from estate agents have grown, so have the risks posed by fraud and money laundering.

“So, agencies should continue to take a thorough approach to their anti-money laundering obligations and encourage employees to engage with the compliance process and raise issues when they spot them.

“By being more proactive about AML, estate agents can stay on the right side of the regulations beyond the submission of SARs,” she continued.

National Crime Agency (NCA) figures shows 50 sectors submitted more than 934,000 SARs and DAML SARs last year. Banks submitted the most SARs in 2022/2023, registering just over 560,000 SARs and nearly 75,000 DAML SARs in total.

What is a Suspicious Activity Report?

A SAR is a document completed by financial institutions and other professionals such as solicitors, accountants and estate agents to alert law enforcement agencies to certain client/customer activity that might indicate potential instances of money laundering or terrorist financing.

SARs are a vital source of intelligence and provide information and intelligence from the private sector that would otherwise not be visible to law enforcement.

Read more here.

What is a Defence Against Money Laundering (DAML) SAR?

A DAML SAR is submitted when there are reasonable grounds to suspect money laundering, but where you are looking to complete an action which may amount to a money laundering offence.

For example, if funds are in an organisation’s account and the organisation then becomes suspicious and wishes to return the funds. If the funds are criminal property, transferring them may amount to a money laundering offence

A person can avoid committing these offences by first submitting an authorised disclosure (a DAML SAR) to the NCA and receiving consent or deemed consent to proceed.

AML Solutions for Regulated Services

We can help organisations of all shapes and sizes from across different sectors undertake a review of their policies, controls, and procedures to ensure that they are compliant with AML regulations and, therefore, avoid any breaches.

A review of this nature provides valuable insight into a business when performed correctly. Along with an overview of risk, these crucial assessments also highlight issues within the business, so it is essential to undertake a proper review. All of a company’s building blocks must be considered, including its staff, clients, operations, and finances.

By working with Regulation & Compliance Office, a business can be assured that we will bring the required level of knowledge and expertise needed to perform the review, which adds value to the business and is not simply a box-ticking exercise. Our team can also provide a full range of services that include:

• Consultancy.
• Compliance Policies.
• Training.
• Handbooks.
• Auditing.

Our services focus on businesses’ Anti-Money Laundering and Regulatory requirements through the implementation of effective policies, procedures, training, and consultancy. We also provide continued monitoring of staff and ongoing training to ensure that everyone within a business is aware of the latest requirements and complies with their responsibilities.

We offer a full range of services focused on ensuring businesses across all regulated sectors create, maintain and evidence their compliance with the requirements of their regulators and legislation. We work with businesses of all sizes, from the smaller high street or niche businesses to the large multi-office and multinationals.

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