Financial Crime World

Money Laundering Reporting Officers: How to File a Suspicious Activity Report with the National Crime Agency

A Guide for Financially Regulated Professionals in the UK

With an increasing focus on Anti-Money Laundering (AML) compliance, it is essential for money laundering reporting officers (MLROs) and other financially regulated professionals to know how to file a Suspicious Activity Report (SAR) with the National Crime Agency (NCA). This guide outlines the process for making such a report.

The Role of the National Crime Agency (NCA)

The NCA is the central agency in the UK responsible for investigating and preventing money laundering and terrorist financing. SARs, also known as [Suspicious Activity Reports Online (SARO)]{.underline}, serve as a critical tool for financial institutions to alert the NCA of potential suspicious transactions.

Assumptions and Target Audience

This guide assumes that the reader is a money laundering reporting officer or a financially regulated professional in the UK with a duty to report. The reader may work in the banking, legal, or insurance sectors, amongst others.

Reporting Process

To file a SAR, the MLRO should follow the steps below:

1. Forming a Suspicion

The first step in the reporting process is for the MLRO to form a suspicion, known as ‘suspicion threshold’. This threshold is reached when the officer has a reasonable cause to suspect that criminal activity may be taking place. Factors that may contribute to the suspicion threshold being met include:

  • Transactions involving large sums of money or property
  • Transactions lacking a legitimate explanation or purpose
  • Transactions that require unexplained complexity

2. Gathering Information

Once a suspicion has been formed, the MLRO should gather as much information as possible about the transaction or situation that gave rise to the suspicion. This information should include details about:

  • The individuals involved in the transaction
  • The entities involved, such as companies or trusts
  • The transactional details, including the amount, date, and location
  • The context of the transaction and any unusual activity surrounding it

3. Reporting the Suspicion

Once the MLRO has all necessary information, they should file a SAR with the NCA. This can be done using the NCA’s online reporting system, SARO, or by sending a physical report by post.

When filing a SAR, MLROs must include all relevant information to enable the NCA to fully investigate the reported suspicious activity. Failure to provide sufficient details may hinder the NCA’s ability to take appropriate action.

The NCA will assess the information provided and determine whether a criminal offence has taken place. If a criminal offence is identified, the NCA will take appropriate action. The MLRO will be informed of the outcome of the investigation, but they will not necessarily be told the result.

Additional Considerations

When making a SAR, MLROs should be aware of certain rules and considerations:

  • Tip-off offence: It is a criminal offence to tip-off an individual who may be subject to investigation. This includes informing the person that a SAR has been made, or even suggesting that a SAR might be made in the future.
  • Failure to disclose: There is a legal obligation on MLROs to submit a SAR when they reasonably suspect money laundering, terrorist financing, or other criminal activity. Failure to disclose may result in both civil and criminal penalties.

Conclusion

As a money laundering reporting officer or other financially regulated professional, understanding how to file a Suspicious Activity Report with the National Crime Agency is crucial for ensuring compliance with AML regulations. By following the steps outlined in this guide, MLROs can effectively report potential suspicious activity and contribute to the ongoing prevention and investigation of money laundering and terrorist financing in the UK.