UK law enforcement agencies are stepping up the use of data matching to trap money launderers and terrorist finance operations using information gleaned from the Suspicious Activity Reports (SARs) which banks and other financial institutions are required to file.
The development is revealed in the latest report on SARs activity from the Serious Organised Crime Agency, which said that the acquisition of further data matching tools by the UK Financial Intelligence Unit (UKFIU) will enable the bulk export and import of data and “allow a better, more timely and proactive service to be provided to law enforcement”.
The annual report issued on behalf of the SARs Regime Committee insisted that the activity meets the requirements of the Data Protecction Act.
But it revealed the intention to widen its scope and invite suggestions for data matching exercises “from a wide range of bodies, beyond the traditional law enforcement community. The UKFIU will select the data sets to match on a case by case basis.”
It urged “reporters”, including accountants, financial advisers, money changers and others as well as the banks and financial institutions, to provide “full and correct data [in the datasets used for matching and in the information submitted in SARs] to assist with this and ensure the effectiveness of such exercises”.
The vast majority of reporters now file SARs electronically, and the committee has dropped plans to require this from the remaining handful using paper methods.
The UKFIU has launched a procurement process to increase the use of IT to enhance activity in a “SARs transformation” process due to be rolled out next year