28 Apr How to Handle Suspicious Activity Reports (SARs)

How to Handle Suspicious Activity Reports (SARs) – SARs play a crucial role in the global effort to combat money laundering, terrorist financing, and other financial crimes. For compliance officers and employees in regulated sectors, knowing how to handle Suspicious Activity Reports (SARs) is not just a legal obligation—it’s a fundamental part of maintaining the integrity of the financial system.

In this comprehensive guide, we explore the key components of SARs, how to recognise suspicious activity, the process for reporting, and how ongoing AML training—such as the fully accredited programmes from KYC Lookup—ensures corporate clients remain compliant and well-informed.

What is a Suspicious Activity Report (SAR)?

A Suspicious Activity Report (SAR) is a formal notification submitted to the relevant financial intelligence unit (FIU)—in the UK, this is the National Crime Agency (NCA)—when a person or organisation suspects potential involvement in money laundering or other financial crimes.

SARs are not proof of wrongdoing. Instead, they are alerts that raise red flags for investigators to assess and potentially act upon.

Who Should Submit a SAR?

SARs are submitted by individuals working within the regulated sector, which includes:

• Banks and financial institutions
• Estate agents and property professionals
• Legal and accountancy firms
• Trust and company service providers
• Casinos and high-value dealers

Anyone within these businesses who identifies suspicious activity is required by law to report it, making AML training essential at all levels of the organisation.

How to Recognise Suspicious Activity

Recognising suspicious activity is a skill that must be honed over time, supported by training and a solid understanding of client behaviour. Indicators may include:

• Large or unusual transactions with no clear business purpose
• Reluctance to provide identification or source of funds
• Frequent changes to payment instructions
• Involvement of high-risk jurisdictions
• Use of complex or opaque corporate structures

AML training programmes, such as those provided by KYC Lookup, equip professionals with practical case studies and scenarios to spot these warning signs effectively.

The SAR Filing Process in the UK

1. Internal Reporting

When suspicious activity is detected, it must first be reported to the Money Laundering Reporting Officer (MLRO) within the company. This internal report is typically made using a standardised form or digital platform.

2. Review and Assessment by MLRO

The MLRO will assess the report, determine whether the suspicion is reasonable, and decide whether a SAR should be submitted to the NCA.

3. Submitting a SAR to the NCA

The SAR is then submitted via the NCA’s SAR Online system, or in some cases via email using the secure platform. It must include:

• Full details of the person or entity involved
• Description of the suspicious activity
• Supporting documentation, if any
• Explanation of why the activity is deemed suspicious

4. Consent or Defence Against Money Laundering (DAML)

If the transaction is yet to be completed and might involve criminal property, a DAML request may be included. The NCA will then have seven working days to respond, during which the transaction must not proceed.

Legal Protections and Responsibilities

Professionals who submit a SAR in good faith are protected under the Proceeds of Crime Act 2002 (POCA) from criminal, civil, and disciplinary action, even if the report later turns out to be unfounded.

However, failing to report suspicious activity can result in serious penalties, including imprisonment. That’s why knowing how to handle Suspicious Activity Reports (SARs) is non-negotiable in any AML-compliant organisation.

Common Mistakes When Submitting SARs

Even experienced professionals can fall into common traps when filing SARs. These include:

• Delays in internal reporting

• Incomplete or vague information
• Failing to include contextual information
• Neglecting to ask for a DAML when appropriate

Avoiding these errors starts with high-quality AML training. KYC Lookup, a UK-based AML training provider, offers fully accredited courses tailored for corporate clients, ensuring all employees—from front-line staff to senior compliance teams—understand their roles and responsibilities.

The Role of Ongoing AML Training

Staying up to date with evolving regulations, red flag indicators, and best practices is essential. AML training is not a one-off event but a continuous process.

KYC Lookup provides a wide range of AML training solutions, including:

• Online and video-based tutorials
• Sector-specific modules (e.g., AML in real estate, finance, or legal)
• Certification upon course completion
• Compliance audit support for regulated businesses

Whether you’re onboarding new hires or updating senior leadership, KYC Lookup ensures your entire team is equipped to handle Suspicious Activity Reports (SARs) efficiently and confidently.

Why KYC Lookup is Trusted by Corporate Clients

With over 17 years of experience in financial crime compliance, KYC Lookup delivers practical, regulatory-compliant AML training designed to:

• Reduce regulatory risk
• Build confidence in compliance teams
• Improve SAR quality and turnaround time
• Align with UK and international AML obligations

Clients working with KYC Lookup benefit from up-to-date material aligned with the UK’s Financial Conduct Authority (FCA) requirements, making it the go-to provider for businesses that take AML compliance seriously.

Embedding SAR Culture into Your Organisation

The submission of Suspicious Activity Reports is not just a regulatory requirement—it’s a cornerstone of financial crime prevention. Embedding a SAR reporting culture within your organisation requires:

• Regular AML training across departments
• A clear internal escalation process
• Robust support from compliance leadership
• Partnerships with experts like KYC Lookup for ongoing education

By ensuring your team knows exactly how to handle Suspicious Activity Reports (SARs), you not only stay compliant but also contribute to the wider fight against money laundering and financial crime.