Account-holders grapple with effects of suspicious activity reporting

The Proceeds of Crime Act, as well as the courts, provide substantial protection from legal liability for financial institutions when they make suspicious activity reports. But when the National Crime Authority is enabled to extend the freezing of suspect accounts up to a possible 226 days, will the courts become more willing to assist the subject of a report than in the past? By Davina Given.

Davina Given (davina.given@rpc.co.uk) is a partner at law firm RPC. She has extensive experience of national and international internal, regulatory and criminal investigations in relation to money laundering, bribery, sanctions, smuggling and compliance with financial regulation; and also advises on complex commercial disputes. Davina would like to thank Christopher To for his assistance in writing this article.

Draco, the earliest known law-giver of ancient Athens, is infamous for imposing the death penalty for even minor offences and ‘draconian’ has accordingly become a byword for harsh rules. For those whose assets are suspected of being proceeds of crime under the Proceeds of Crime Act 2002 (POCA), Draco might seem a welcome alternative.