Money Laundering: system to coincide with launch of SOCA

The National Criminal Intelligence Service (NCIS) is to launch an on-line reporting function for suspicious activity reports (SARs) in April - which is likely to become compulsory at a later date - it has emerged.


The system follows a successful six-week pilot of e-reporting last year, and will be introduced to coincide with the launch of the Serious Organised Crime Agency (SOCA).


Robin Booth, chairman of the Law Society's money laundering task force, said: 'If we can get over the [technical] problems with the on-line form, then in principle the Law Society understands that there is strong public interest in an efficient reporting system that does not cost a lot of public money. It is likely to become compulsory at some date in the future, and we will not necessarily oppose that. Our only concern is over how long the transition is - we would have to be satisfied that it is reasonable in terms of the demands on solicitors.'


Meanwhile, SOCA chairman-designate Sir Stephen Lander - who is also a member of the Law Society's new regulation board - has begun a wide-ranging review of the SARs regime. He will report back to the Chancellor of the Exchequer at the end of March.


Figures just released for 2005 show a dramatic drop in the number of SAR reports made by solicitors. Some 9,608 reports were made by solicitors last year, compared to 18,731 in 2004. Solicitors accounted for 5% of all reports made in 2005, compared to 12% the year before.


The drop follows March's Court of Appeal ruling in Bowman v Fels [2005] EWCA Civ 226, which established that lawyers advising clients in the course of litigation are exempt from requirements under the Proceeds of Crime Act 2002 to report suspicions of money laundering.