Suspicious activity reports (SARs) are key tools that law enforcement agencies use in the fight against money laundering and play a crucial part in unearthing financial crime.

A SAR is a document that financial institutions and other professionals such as solicitors, accountants and estate agents must submit if they suspect any potential instances of money laundering or terrorist financing. SARs are completed and returned to the UK Financial Intelligence Unit (UKFIU), which is part of the National Crime Agency (NCA).

There are slightly different rules and requirements for regulated businesses and those not in a regulated sector. Private individuals can also submit SARs if they have any suspicion or knowledge of money laundering or terrorist financing.

Submitting a SAR protects you, your business, your profession, and the UK from the risk of laundering the proceeds of crime.

In this blog, we answer some frequently asked questions about suspicious activity reports.

What is a suspicious activity report?

A SAR is a piece of information that alerts law enforcement that client or customer activity is in some way suspicious and might indicate money laundering or terrorist financing.

Filing a SAR is a requirement under part 7 of the Proceeds of Crime Act 2002 (for money laundering) and part 3 of the Terrorism Act 2000 (terrorist financing).

There are slightly different requirements for businesses and individuals depending on whether they fall under the scope of the UK Money Laundering Regulations.

How do you make a SAR?

The NCA’s SAR Online Portal is the easiest way to submit a SAR. The service is free and secure, and reports can be made 24/7.

SARs can also be submitted in paper form.

You can find more information about SAR user guidance on the NCA’s website by clicking here.

How can you make a high-quality SAR?

The UKFIU receives more than 460,000 SARs a year. Submitting a good quality SAR can reduce delays and help the UKFIU quickly prioritise and process the report.

When making a SAR, it is important to keep it as factual as possible and complete as many fields as you can. It helps to think about:

• Who is doing what.
• Who they are/were doing it with.
• When they are/were doing it.
• Why they are/were doing it.
• Where they did it.
• How they are doing it.

How are SARs used?

SARs are stored on the NCA’s central database, which currently holds over two million SARs. The NCA analyses the SARs to extract strategic and tactical intelligence, identifies the most sensitive SARs and sends them to the appropriate organisations for investigation.

A single SAR can be used many times by different users for various purposes. For example, the information within a SAR may inform HM Revenue & Customs about taxation, local police about fraud or theft and a government department about an issue or weakness in a financial product.

SARs are also made available to UK law enforcement bodies.

Compliance Solutions for Regulated Businesses

Knowing when to complete a suspicious activity report and being aware of the process involved is a key part of regulated businesses’ compliance programmes. At the Regulation & Compliance Office (RACO), we understand precisely what is required and have the experience to help devise and produce an effective AML compliance programme to fit your needs.

We can help organisations of all shapes and sizes from different sectors undertake a risk assessment to ensure that they are compliant with AML regulations and have the necessary policies and procedures in place to avoid any breaches.

A risk assessment 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 risk assessment properly. All of a company’s building blocks must be considered, including its staff, clients, operations, and finances.

By working with RACO, a business can be assured that we will bring the required level of knowledge and expertise needed to perform a risk assessment which has 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 Regulator 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.

Get in Touch

If you believe your business may be at risk or wish to confirm your firm is achieving the required standard of AML and Compliance, we can help. 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.

If you want to discuss our services in more detail, call us on 0203 985 8550, email us at info@regulationandcomplianceoffice.co.uk or complete an enquiry form.