Number of SARs, however, remains significant when compared to the annual volume of property transactions
There has been a notable decline in the number of suspicious activity reports (SARs) filed by independent legal and conveyancing professionals in the UK, new research from the SARs Annual Statistical Report 2023 indicates.
According to the report, SARs figures decreased by 13.18% from 2,859 in 2021-2022 to 2,526 in 2022-2023.
Despite the decline, the number of SARs remains significant when compared to the annual volume of property transactions, underscoring the continued need for vigilance among lawyers and conveyancers in identifying and reporting potential financial crimes.
“Identifying warning signs early allows lawyers and conveyancers to conduct enhanced due diligence, ask more questions and potentially file a suspicious activity report with the NCA,” said Tim Barnett, chief executive of anti-money laundering platform Credas Technologies.
“It’s easy to slip into thinking that AML checks are a box-ticking exercise, but money laundering and financial crimes have real victims that are only a few steps removed from the money that is being transacted.
“Identity verification is a crucial part of the risk-based approach that companies in the regulated sector are obligated to take under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) regulations 2017.”
According to Credas Technologies, common techniques used for laundering money include third-party proxies making purchases to obscure the link between property and criminal, irregular sale prices, and obfuscated sources of funds. Additional red flags may include buyers in high-risk territories or those using shell companies and trusts to conceal ownership.
Credas supports the legal sector with real-time identity verification using facial recognition technology, streamlining the complex and resource-intensive process of ID checks, enhancing the ability to detect suspicious activities swiftly.
By working with a wide range of commercial data suppliers, it offers checks on individuals and companies and verifies over 2,500 types of identity documents through its app or website.
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