May 09, 2018
THE National Crime Agency (NCA) has published the first version of the Defence Against Money Laundering (DAML) FAQ.

Defence Against Money Laundering (DAML) FAQ

THE National Crime Agency (NCA) has published the first version of the Defence Against Money Laundering (DAML) FAQ.

The purpose of the DAML FAQ

The NCA provides that:

“This product draws together the good practice and interpretations provided by experienced Money Laundering Reporting Officers (MLROs) from across the UK SARs regime. Collaborative answers are provided to the most frequently asked questions concerning the DAML process. Most regulators, supervisors and trade bodies have indicated they will use this product as a key reference point on their anti-money laundering (AML) help desks and they intend to expand these answers with sector specific examples as required.

The ambition of these core answers is therefore to help a large cross section of the SAR reporting community and improve the quality of DAML disclosures. The aim will be to regularly review the content as it is anticipated that this product will evolve into further editions following the introduction of new legislation, regulations and crime trends.

The provided answers to the questions are intended to provide good practice GUIDANCE ONLY. The answers are not intended to, nor should they be construed as, providing any form of legal advice. It signposts that more tailored industry-specific advice regarding DAML requests, submitting SARs to the NCA or more general AML compliance should be sought from regulators, supervisors, trade bodies and considerations be given to seeking independent legal advice.”

Benefits of the DAML FAQ include:

-  It offers good practical guidance and should help improve DAML quality.

-  Time should be saved for the UK Financial Intelligence Unit (UKFIU) sending
    requests for further information and for reporters replying to such requests.

-  It signposts SAR regime AML guidance in one place.

-  AML help desk facilities now have a common framework to start from and can provide
   their colleagues with examples that relate to their work environments.