Money Laundering: Review of the Reporting ... - Dematerialised ID
Money Laundering: Review of the Reporting ... - Dematerialised ID
Money Laundering: Review of the Reporting ... - Dematerialised ID
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kpmg<br />
<strong>Review</strong> <strong>of</strong> <strong>the</strong> regime for handling Suspicious Activity Reports<br />
Report <strong>of</strong> recommendations<br />
KPMG LLP<br />
recover criminal assets can <strong>the</strong>n be used alongside prosecutions for <strong>the</strong> relevant criminal<br />
<strong>of</strong>fences.<br />
3.4.8 The SAR regime also has to be linked in to <strong>the</strong> objectives and desired outcomes identified<br />
and addressed in <strong>the</strong> National Policing Plan and <strong>the</strong> NCIS National Intelligence Model.<br />
3.5 Existing successes <strong>of</strong> <strong>the</strong> SAR regime<br />
LEA successes using SARs<br />
3.5.1 Despite <strong>the</strong> weaknesses identified in this report, <strong>the</strong> existing SAR regime has contributed<br />
to a number <strong>of</strong> successful LEA operations over recent years. These clearly demonstrate<br />
<strong>the</strong> fundamental role that SARs can play in initiating investigations. The system can<br />
work well and does have an impact on crime. The challenge is to make it work more<br />
effectively.<br />
3.5.2 We tracked 600 SARs disclosed between January 2000 and June 2002 to determine<br />
whe<strong>the</strong>r <strong>the</strong>y had played a role in any investigations or prosecutions. 11% <strong>of</strong> <strong>the</strong> total<br />
ei<strong>the</strong>r contributed to a successful outcome or are still being worked on. This represents<br />
34% <strong>of</strong> <strong>the</strong> 193 SARs in <strong>the</strong> survey where LEAs could identify <strong>the</strong> outcome related to a<br />
particular SAR. More detail on <strong>the</strong> results <strong>of</strong> our survey can be found in section 4.7<br />
below.<br />
• The successful cases in our sample included 18 PoCA related operations and<br />
subsequent cash seizures that took place after 30 December 2002 (when <strong>the</strong> relevant<br />
provisions came into force). The SARs in question arose at least six months prior to<br />
<strong>the</strong>n (i.e. before 30 June 2002, <strong>the</strong> cut-<strong>of</strong>f date <strong>of</strong> <strong>the</strong> sample). These cases included<br />
nine in <strong>the</strong> London region that led to cash seizures totalling £614,995. They indicate<br />
<strong>the</strong> fur<strong>the</strong>r value that will be derived from SARs once <strong>the</strong> powers <strong>of</strong> PoCA are fully<br />
exploited.<br />
• Our sample <strong>of</strong> 600 included one SAR which had been one <strong>of</strong> a series <strong>of</strong> three SARs<br />
made by two institutions. This led directly to <strong>the</strong> disruption <strong>of</strong> an attempted “advance<br />
fee” fraud. The SAR related to a proposed transfer <strong>of</strong> funds overseas and was fasttracked<br />
to <strong>the</strong> relevant LEA, an urban police force. The LEA made contact with <strong>the</strong><br />
<strong>Money</strong> <strong>Laundering</strong> <strong>Reporting</strong> Officers (“MLROs”) and visited <strong>the</strong> institution making<br />
<strong>the</strong> principal disclosures. Following discussions with <strong>the</strong> MLRO and a number <strong>of</strong><br />
representatives <strong>of</strong> law firms present at <strong>the</strong> institutions, and advice given by <strong>the</strong> LEA,<br />
<strong>the</strong> institution made a commercial decision to close <strong>the</strong> account. The subjects <strong>of</strong> <strong>the</strong><br />
SAR had attempted to transfer US$760,000 in total.<br />
3.5.3 Over <strong>the</strong> last two and a half years <strong>the</strong> AML unit <strong>of</strong> one urban police force has carried out<br />
restraint and/or confiscation actions in 38 cases. Eight <strong>of</strong> <strong>the</strong>se were linked to SARs<br />
through which a total <strong>of</strong> £71 million has been restrained.<br />
3.5.4 Sanitised versions <strong>of</strong> certain <strong>of</strong> <strong>the</strong> successes identified by various LEAs are given below:<br />
• In July 2001 as a result <strong>of</strong> a SAR (and following a joint operation between two LEAs<br />
during which a total <strong>of</strong> 25 fur<strong>the</strong>r SARs were disseminated) eight people were<br />
arrested and charged with money laundering <strong>of</strong>fences. Cash totalling £52,000,<br />
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