Submit a Suspicious Activity Report even if law enforcement is already investigating

Suspicious Activity Reports (SARs) are a legal requirement for those working in the regulated sector and play a vital role in tackling financial crime. Failing to report can have serious consequences for both you and your firm. If you suspect money laundering or terrorist financing, you must submit a SAR, even if a law enforcement agency is already investigating or aware.

If, through your work, you know or suspect that someone is involved in money laundering or terrorist financing, you must report it. This also applies if you have reasonable grounds to suspect it. This obligation is set out in the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000 and applies across accountancy, tax, audit and insolvency.  

While working, there may be times where you become aware that the police, or another law enforcement agency including HMRC, are already investigating or making enquiries into activity which would otherwise be reportable. Existing law enforcement involvement doesn’t remove your obligation to report. The legal requirement still applies, and failing to submit a SAR required by section 330 POCA would amount to a criminal offence. 

What this means for firms and MLROs 

If a staff member becomes suspicious during their work, they should follow the firm’s internal reporting process and submit an internal SAR to the MLRO as soon as possible. The MLRO should then decide, as soon as practicable, whether an external SAR needs to be submitted to the NCA. If law enforcement is already involved, this doesn’t remove the need to follow the usual SAR process. The decision should still be based on the legal tests and the facts known to the firm. 

Making a SAR can add to the information available to law enforcement  

It might be assumed that making a SAR in these circumstances simply duplicates what authorities already know, but this isn’t the case. SARs provide valuable information that may not otherwise be visible to law enforcement. Even where an existing investigation is already underway, your report could: 

• Confirm existing suspicions.  
• Provide additional context. 
• Identify connected parties. 
• Highlight assets or transactions. 
• Explain how professional services have been used. 

A high-quality external SAR can provide additional information which builds a clearer picture and contributes to the detection and prevention of serious and organised crimes.  

Looking for further guidance  

If you need support or guidance, contact the ICAS Practice Support team in confidence via the ICAS Technical helpdesk. You can also read the ICAS helpsheet Suspicious Activity Reporting in the General Practice Manual for more information on making a SAR.