Money laundering news 06/02/2010 Fewer SAR filed by solicitors in 2008-9

For the third year in succession, the number of Suspicious Activity Reports (SAR) of potential money laundering and related crimes submitted to the authorities by solicitors has fallen.

Reporting the figure of 4,772 for the period October 2008 to September 2009, The Law Society suggests that the decrease is because most of the UK SAR relate to the property market and mergers and acquisitions, both sectors which have suffered in the economic downturn.

Estate agents, mortgage providers, independent financial advisers and investment exchanges also saw a drop in the number of reports.

In total during the period, 228,834 reports were filed across the regulated sector. The largest group of reporters were banks, followed by building societies, money transmission providers, cheque cashiers, accountants and then solicitors.

Solicitors made the second highest number of consent requests (3,040) and 11 SAR about suspected terrorist financing.

Chair of The Law Societys money laundering taskforce Alison Matthews said, Solicitors in the UK continue to support the fight against money laundering. While numbers of actual reports may fluctuate from year to year, UK solicitors make thousands more reports than our European counterparts.

She said The Law Society had been working extensively with the Serious Organised Crime Agency (SOCA) this year through its Money Laundering Reporting Officer (MLRO) groups, to help the profession to submit high quality SAR containing good intelligence which can be used more effectively by law-enforcement bodies.

There is good dialogue between SOCA and The Law Society, which helps to ensure a good understanding of the issues for the profession. This work on the increased focus on the quality of SAR and on what constitutes money laundering may also be helping to reduce the level of defensive reporting. This will, in turn, make the SAR regime more efficient.

We continue to work with SOCA and the profession to ensure that where a SAR needs to be made by a solicitor, the SAR is high quality, is made at the right time and is then used effectively by law enforcement. There is ongoing discussion with SOCA to improve the amount and quality of feedback on SAR to the profession, said Ms Matthews.

News « SAR news - Solicitors report less suspicious activity

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