Defence against money laundering

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Defence against money laundering

DAMLAlso called consent SAR, appropriate consent

Definition

A defence against money laundering, or DAML, is a request to the UK National Crime Agency for consent to carry out an act that may involve criminal property. A firm files it as a suspicious activity report. If the agency does not refuse within seven working days, the firm has a defence to the principal money laundering offences.

SAR TO NCA7 WORKING DAYS31 DAY MORATORIUM186 DAY MAXIMUM
Fig. 1 · Defence against money laundering
POCA s335 and s338 · POCA s336A · SI 2025/877
Key rulesPOCA s335 and s338 · POCA s336A · SI 2025/877
Applies toAnyone making an authorised disclosure, mainly regulated firms
RegionsUK
01

How it works

A firm that suspects funds are criminal property and wants to process them files a DAML request through the SAR portal. It then waits. The NCA has seven working days to respond. Silence counts as consent. A refusal starts a 31 day moratorium, which a court can extend in steps of up to 31 days, adding no more than 186 days in total.

DAMLs let firms avoid committing a money laundering offence while dealing with suspect funds. They also give law enforcement time to restrain assets. The cost is delay to customers and tipping off risk during the wait. In 2023 the law added an exemption for returning funds when exiting a customer, now set at £3,000.

Step 1Identify suspicionStaff report suspected criminal property to the MLRO
Step 2Submit DAMLMLRO files a SAR requesting a defence
Step 3Hold the actPause the transaction during the seven working days
Step 4Act on responseProceed on consent; wait out any moratorium
02

The rules

UK · 24 February 2003POCA s335 and s338Proceeds of Crime Act 2002, sections 335 and 338

Sets out appropriate consent and authorised disclosures, with a seven working day notice period and 31 day moratorium after refusal.

Anyone making an authorised disclosure, mainly regulated firms
UK · 31 October 2017POCA s336AProceeds of Crime Act 2002, section 336A, inserted by the Criminal Finances Act 2017

Lets the Crown Court extend the moratorium period by up to 31 days at a time, to a maximum of 186 days.

Firms awaiting a DAML decision
UK · 31 July 2025SI 2025/877Proceeds of Crime (Money Laundering) (Threshold Amount) (Amendment) Order 2025

Raises the section 339A threshold amounts from £1,000 to £3,000 for operating accounts and for returning funds when ending a customer relationship.

Deposit-taking bodies and other regulated sector firms
03

Common questions

How long does a DAML take?

The NCA has a notice period of seven working days starting the day after the request. If it refuses, a 31 day moratorium follows. A court can extend the moratorium in steps of up to 31 days, adding no more than 186 days in total.

Is a DAML the same as consent?

Yes in substance. The legislation calls it appropriate consent. The NCA uses the term defence against money laundering because consent does not mean approval of the transaction. It gives the reporter a defence to the principal money laundering offences.

Does every suspicious payment need a DAML?

No. A DAML is needed only when a firm plans to do something with property it suspects is criminal. Deposit-takers and other regulated firms have threshold exemptions, raised to £3,000 in July 2025, for some account operations and customer exits.