New data from the SARs Annual Statistical Report 2023 indicates a decline in Suspicious Activity Reports (SARs) filed by independent legal and conveyancing professionals, with figures falling 13.18% from 2,859 in 2021-2022 to 2,526 in 2022-2023.
Despite these numbers appearing high, they are relatively low compared to the annual number of property transactions, highlighting the ongoing need for vigilance in the sector.
Tim Barnett, CEO of Credas Technologies, stressed the importance of recognizing and responding to potential red flags in property transactions. “Identifying warning signs early allows lawyers and conveyancers to conduct enhanced due diligence, ask more questions and potentially file a suspicious activity report (SAR) with the NCA,” he said.
Barnett also highlighted the significance of thorough identity verification and anti-money laundering checks: “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.”
Common laundering techniques identified include the use of third parties or proxies to obscure the real buyer’s identity, irregular sale prices, suspicious source of funds, and the acquisition of properties via shell companies or trusts. These methods complicate the tracking of illicit funds and pose challenges to legal compliance.
