NAEA ARLA Conference
Newmarket
08th October 2014
Content
NCA Overview
SAR Regime
Best Practice
Case Studies
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National Crime Agency (NCA)
Keith Bristow
Intelligence Hub
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UKFIU Structure
Alan Hislop
Head of UKFIU
Donna Carruth
Keith White
Policy and
Communications
Consent
SARs Data
Exploitation Team
International Corruption
Intelligence Cell
Dialogue
International
Systems and Futures
Terrorist
Finance Team
SAR Management
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UK Financial Intelligence Unit
National responsibility for receiving, analysing and
disseminating financial intelligence submitted through
the Suspicious Activity Reports (SARs) Regime
Delivers the day-to-day operation of the
SARs database (ELMER)
Provides agreed support to the regime's end users, reporters
and other stakeholders, including international partners
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Money Laundering &
UK Legislation
The Problem
105 Kilos of Heroin
….generates £2,760,000 cash
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Trends
At least 1 in 4 organised crime groups retain a corrupt
individual in the legitimate financial sector
Illicit profits are often laundered through cash-rich overt
businesses, which very often operate on the high street and
typically include nail bars, food and licensed premises,
companies offering security services, taxi firms and car
washes.
Complicit, negligent or unwitting professionals in the
financial, accountancy and legal professions in the UK
facilitate money laundering on behalf of organized criminals.
UK organised crime groups also use specialist money
launderers, some overseas, who manage laundering for
multiple criminal enterprises.
Government Serious Crime Review – Oct 2013
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UK Legislation
Primary Legislation
Proceeds of Crime Act 2002 (POCA)
Terrorism Act 2000 (TACT)
Secondary Legislation
Money laundering Regulations 2007
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POCA Interpretation
POCA – Criminal Conduct
S.340(2)
Any conduct which constitutes an offence in any
part of the UK or would constitute an offence in
any part of the UK if it occurred there
POCA – Criminal Property
S.340(9)
Any benefit derived from criminal conduct.
Property includes money, all forms of property,
real or personal, heritable or moveable, things
in action and other intangible or incorporeal
property
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POCA – Money Laundering Offences
s.327 Concealing, disguising, converting, or
transferring criminal property
s.328 Being concerned in an arrangement in
relation to criminal property
s.329 Acquisition, use or possession of criminal
property
PENALTY – 14 years imprisonment
Where a suspicious transaction is pre-advised, Consent must be sought
from the NCA to proceed
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POCA – Other Offences
s.330 Failure to disclose – applies to the regulated sector.
A person commits this offence if he knows or suspects or
has reasonable grounds for knowing suspecting that
another is engaged in money laundering and fails to
report it
PENALTY: 5 years imprisonment
s.333 Tipping off
“Knows or suspects” that a disclosure (report) has been
made
&
(b)Makes a disclosure which is likely to prejudice any
investigation which might be conducted following the
disclosure
PENALTY: 2 years imprisonment
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SAR Best Practice
SAR Best Practice
 Put in all KYC / CDD information
 Address & date of birth vital if known
 Make sure your reason for suspicion is clear
 Reason for suspicion should be in first line of text
 Glossary code should be used
 Always put postcode in even if previously reported on
 If you need Consent be specific (and tick the box)
 Submit via SAR Online / Fax
 Be available during the notice period
 Consider business / reputational risk
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Consent – Essential Elements
The information or other matter which gives the grounds
for knowledge, suspicion or belief
A description of the property that is known, suspected or
believed to be criminal or terrorist property
A description of the prohibited act for which consent is
sought
The identity of the person or persons known or suspected
to be involved in money laundering or committing or
attempting to commit an offence under s15 to 18 of TACT
The whereabouts of the property that is known or
suspected to be criminal or terrorist property
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POCA Interpretation
www.nationalcrimeagency.gov.uk
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SAR Usage
SARs Breakdown by Sector
2012-2013
Banks
78.24%
Accountants
Banks
Building Societies
Building Societies
3.36%
SA
Accountants
2.06%
Other
6.03%
Estate Agents
0.05%
MSBs
8.40%
Legal
1.51%
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Gambling
0.34%
Estate Agents
Gambling
Legal
MSBs
Other
SAR Usage Oct 2011 – Oct 2012
Investigations featuring a SAR:
£108.1 million subject to Restraint Orders
£49.8 million in Confiscation Orders
£8.7 million in Cash Forfeitures
Interventions arising from Consents :
£110.3 million subject to Restraint
£36.7 million returned to HMRC
Asset Denial 2011 / 12:
Assets denied by SOCA - £100.6m
Assets denied by partners (UK & Overseas) - £299.7m
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Intelligence vs. Evidence
•Strictly for intelligence purposes only
•Managed in accordance with your agreement with UKFIU
& HO Circ 53/2005
•SARs information should always
be on the sensitive schedule for CPIA
•Any potential disclosure MUST be discussed with UKFIU
•If evidential material required then ILOR through the
UK Central Authority (Tel: 0207 035 4040)
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Case Studies
Operation Numerator
London Connection
Aras Karkuti (23 years)
Naveed Butt
Farhad Ibrahim* (20 Years)
Khalid Durani (18 Years)
(Iraqi Kurds)
Balkees Begum
Wife
(10 Years)
Shadab Khan
Solicitor
(4 Years)
Stephan Osborne
Malik’s ‘Banker’
(Deceased)
Khalid Malik
(25 Years)
Tanveer Cheema
Mortgage Advisor
(3 Years)
Shanaz Afzal
Begum’s Sister
(4 Years)
Paul Morgan
Property Dev
(5.5 Years)
Davinder Singh
OCG Member
(15 Years)
Shafiq Rehman
Courier
(200 hrs CS)
Mohammed Khan
OCG Member
(14 Years)
Parmjit Singh
Courier
(200 hrs CS)
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ML Modus Operandi
Front Company?
Unique Car Care Company
Cash Smuggling?
Property?
£860k flat in Dubai
£900k land in Bulgaria
Rental Properties?
£1.2m across Yorkshire
Professionals Involved?
Foreign Bank Accounts?
Other Accounts?
Bling Lifestyle?
?
£100K
£29k jewellery, cars
Malik’s Lamborghini & SL55
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Estate Agents - Smurfing
Nasrullah Khan
10 Years
Fazal Hussain
7 Years
Muhammed Habib
3 Years
Mark Owens
3 Years
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Threat Areas – Property Sector
Targeting by OCGs – value knowledge / access
Identity fraud / false documentation to evade
KYC / CDD procedures
Complicit / bogus professionals
High cash turnover businesses / unusually
profitable
Increased OCG use of offshore accounts & Company
Service Providers
Overseas links / international cash flow
Protect
OFFICIAL Yourselves – Be Suspicious
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Contact Details
• SAR Online & Glossary of Terms –
www.nationalcrimeagency.gov.uk
• UKFIU Support desks –
• UKFIU Dialogue Team via
0207 238 8282
ukfiusars@nca.x.gsi.gov.uk
• SAR Confidentiality Breach Line –
0800 234 6657
• NCA General Enquiries Number –
0370 496 7622
• Fraud Reporting
www.actionfraud.org.uk/report_fraud
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Any Questions?
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