Where next for SARs? The UK Law Commission consults

Emma Radmore (+44 (0)207 788 2372, emma.radmore@wbd-uk.com) is legal director and a member of Womble Bond Dickinson (UK) LLP's financial services team.

It is well-known and undisputed, writes Emma Radmore of Womble Bond Dickinson (UK) LLP, that the UK SARs regime under which the National Crime Agency receives countless reports either seeking consent to proceed with transactions, as defences to potential allegations of money laundering or terrorist financing or otherwise as required by anti-money laundering or counter terrorist financing legislation, is broken and not fit for purpose. Equally though, when the Government considered getting rid of the regime, industry agreed that it was needed in some form. But what exactly is needed? How can it help to detect and prevent money laundering and punish criminals without causing unnecessary delays and costs to business, or result in devastating consequences for those about whom a suspicion has been raised but who turn out to be innocent? The Law Commission has given this matter significant thought, and has now published a 200-page consultation paper setting out its thoughts and proposals – the subject of this article - and seeking views.