When handling client funds, you may encounter situations where continuing an activity could risk committing a money laundering or terrorist financing offence. In these cases, UK law allows you to request a defence—commonly known as “consent”—from the UK Financial Intelligence Unit (UKFIU).
The full UKFIU guidance on DAMLs and DATFs can be found here.
Here’s what you need to know:
What Is a Defence Request?
- A DAML (Defence Against Money Laundering) applies under POCA when you suspect property is criminal.
- A DATF (Defence Against Terrorist Financing) applies under TACT when you suspect property is terrorist-related.
- Defence requests protect you from prosecution for specific future activities that would otherwise breach POCA or TACT.
Key Points
- Not Permission: A granted defence is not approval to proceed—it only protects you from certain offences. You must still consider regulatory and ethical obligations.
- Correct Legislation Matters: Select POCA for DAMLs and TACT for DATFs in the SAR Portal. Submitting under the wrong law delays decisions.
- Essential Criteria:
- Grounds for suspicion.
- Description of criminal or terrorist property.
- Description of the prohibited act (future activity).
How to Request
- Submit via the SAR Portal or bulk reporting API.
- Complete Section 7 of the SAR Portal accurately—do not just write your request in the “reason for suspicion” field.
- Provide clear details of:
- The activity (e.g., transfer funds, complete property sale).
- Value and destination of funds.
- UK nexus (link to UK jurisdiction).
Notice Period and Moratorium
- After submission, a 7-working-day notice period applies—do not proceed until it ends or you receive a granted decision.
- If refused, DAMLs enter a 31-day moratorium (extendable by court). DATFs have no moratorium—refusal means no defence.
Common Mistakes to Avoid
- Vague or hypothetical requests (“I want to act for the client”).
- Seeking defence for past actions—requests must be for future, specific acts.
- Assuming defence covers all legal risks—it only applies to POCA or TACT offences.
Exemptions
- Certain low-value transactions (under £3,000) and ring-fenced funds may not require a DAML, but you must still submit a SAR.
Quick Checklist for Defence Requests
- Confirm suspicion relates to criminal or terrorist property.
- Select correct legislation (POCA or TACT) in SAR Portal.
- Provide full details of prohibited act (future activity).
- Include value, destination, and UK nexus.
- Describe criminal/terrorist property clearly.
- Keep SAR Portal contact details up to date.
- Do not proceed until notice period ends or defence is granted.
Useful Contacts
- DAML team: DA**@*****ov.uk
- Terrorist Finance team: UK******@*****ov.uk
- General SAR guidance: UK*************@*****ov.uk