Last updated: 14 Feb 2025 08:00 Posted in: AIA
The latest report on Suspicious Activity Reporting (SAR) trends for 2024-25 highlights several key developments and ongoing challenges in the fight against financial crime. This report, published by Association of International Accountants (AIA), underscores the critical role that SARs play in alerting law enforcement to potential instances of money laundering and terrorist financing.
Each year AIA Members in Practice must submit an Annual Declaration relating to their firm, internal controls, and clients. As part of this Annual Declaration AIA requests information on the number of Suspicious Activity Reports (SARs) made in the past 12 months and their general categorisation.
A SAR is required when, during the course of their business in a regulated sector, a relevant employee (e.g. a Member in Practice) develops a suspicion of a crime with proceeds. More guidance on each of these elements is contained within Anti-Money Laundering Guidance for the Accountancy Sector (AMLGAS).
The trends observed in the 2024-25 report mirror those from the previous year, indicating consistent challenges and the need for ongoing vigilance. The increase in the number of SARs submitted highlights the growing awareness and responsiveness of AIA members to suspicious activities. This proactive approach is essential in combating financial crime and ensuring the integrity of the financial system.
Key Findings:
Increase in SARs: Despite a slight decrease in the number of AIA-supervised firms submitting SARs (30 in 2023/24), the total number of SARs submitted has increased to 66, up from 59 in the previous year. This suggests a rise in the frequency or severity of suspicious activities being reported by fewer firms.
Common Themes: The report identifies several recurring themes in the SARs submitted:
Importance of Reporting: The report emphasises the importance of reporting suspicious activities to prevent financial crime, maintain financial integrity, comply with legal obligations, and support law enforcement efforts.
By identifying and reporting potential money laundering activities, AIA members contribute to a safer and more transparent financial system, protecting both their clients and the broader economy.
David Potts, AIA Director of Policy & Regulation and MLRO, said, “AIA Members in Practice have identified a range of suspicions and reported these via the appropriate channels in the past 12 months. The role of AIA members in reporting suspicious activities remains crucial. Their vigilance and adherence to reporting requirements are vital in the fight against financial crime. SARs are a vital source of intelligence not only on economic crime but on a wide range of criminal activity.”
Read More“AIA Members in Practice have identified a range of suspicions and reported these via the appropriate channels in the past 12 months. The role of AIA members in reporting suspicious activities remains crucial. Their vigilance and adherence to reporting requirements are vital in the fight against financial crime. SARs are a vital source of intelligence not only on economic crime but on a wide range of criminal activity.”
David Potts, AIA Director of Policy & Regulation and MLRO