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Frozen – NCA freezes over £130M in potential criminal property
Posted: 18th December 2019
The National Crime Agency (NCA) has issued details of the Suspicious Activity Reports (SARs) submitted over the course of the last year.
After heavy criticism of the regulated sector for failing to identify and report their suspicions, the result has been an increase in requests from organisations seeking consent to continue to act in circumstances that they consider to be suspicious. There has been a record number of reports with SRAs last year totalling 478,437; over a 50% increase.
In past years only £52 million was restrained or frozen as a result of these specific consents requests. The process emphasis was changed to one in which applicants sought a defence as opposed to gaining consent but the former language of consent remains in more regular use.
The increase in SARs has led to over £130 million of potential criminal property being frozen. The report also indicated that less than 5% of the requests were actually refused making it perhaps easier for regulated bodies to submit their requests notifying the appropriate agencies of activity which they find suspicious.
The most significant reporting increase has come from banks and the fintech sectors with changes in the way suspicious activities are being identified being held responsible for the increase. The number of reports from lawyers and accountants remains generally low.
If you are in the regulated sector, it is vital that you keep on top of your compliance.
The 5th Money Laundering Directive is on the horizon coming into force on the 10th January 2020. The government has always indicated that it is keen to ensure that the UK’s anti-money laundering and counter terrorist financing regime deters money laundering and terrorist financing activity whilst being proportionate and managing the burdens on businesses. With this in mind, if you are in the regulated sector, all policies and procedures should be reviewed in readiness and keep an eye out for the government’s advice upon implementation.
For further advice and assistance please contact our Private Client Team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
Disclaimer: The information provided on this blog is for general informational purposes only and is accurate as of the date of publication. It should not be construed as legal advice. Laws and regulations may change, and the content may not reflect the most current legal developments. We recommend consulting with a qualified solicitor for specific legal guidance tailored to your situation.
