The Serious Organised Crime Agency (SOCA) wants solicitors to make more and better reports on suspected money laundering over the next year, after reports submitted to the agency fell by more than 40%.

In its second annual report, SOCA says it will encourage organisations most vulnerable to money laundering – including law firms – to ‘improve the quality and quantity’ of suspicious activity reports (SARs) sent to the agency.

The number of SARs filed by solicitors between October 2007 and September 2008 fell by 43% compared with the same period last year, from 11,300 to 6,460.

SOCA and the Solicitors Regulation Authority (SRA) have signed a working agreement in recognition of the fact that solicitors are particularly vulnerable to money laundering.

‘Reporting sector organisations identified as being vulnerable to money laundering [must be] made aware of their obligations to report, [which] will improve the quality and quantity of reports received from these areas,’ the report says. ‘In the year ahead, greater resource will be concentrated on the areas that have the most impact on criminal activity.’

Mike Calvert, head of forensic investigation at the SRA, said he was ‘impressed’ by SOCA’s desire to engage with regulators. The SRA sits with four other regulators on a forum chaired by the UK Financial Intelligence Unit, which processes SARs.

The number of SARs filed by solicitors this year represents 3% of the total filed by all institutions, compared with 14% last year. Before the Proceeds of Crime Act 2002 (POCA) came into force, solicitors were heavily criticised by SOCA’s predecessor, the National Criminal Intelligence Service, for making only 1% of the SARs logged in 2001-02.

(See interview)