{"id":10809,"date":"2026-01-22T11:14:45","date_gmt":"2026-01-22T11:14:45","guid":{"rendered":"https:\/\/www.amlcc.com\/?p=10809"},"modified":"2026-01-26T13:31:11","modified_gmt":"2026-01-26T13:31:11","slug":"when-is-a-daml-required","status":"publish","type":"post","link":"https:\/\/www.amlcc.com\/sx\/when-is-a-daml-required\/","title":{"rendered":"When is a DAML required?"},"content":{"rendered":"\n

When is a DAML required?<\/h1>\n\n\n
\"Richard<\/div>
Richard Simms<\/span>

Director and Founder of AMLCC and AMLCC Consult<\/h3><\/div><\/div><\/div><\/div>\n\n\n
\"When<\/figure><\/div><\/div>\n\n\n\n
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A DAML (Defence Against Money Laundering) isn\u2019t required every time you submit a SAR <\/a>(suspicious activity report). It\u2019s required only in specific circumstances and UKFIU guidance is clear about where that line sits.<\/p>\n\n\n\n

In short, a DAML is required when continuing with a particular transaction could itself be a criminal offence and you need to rely on a statutory defence before acting.<\/p>\n\n\n\n

Understanding that threshold makes it much easier to decide when a DAML is necessary and, just as importantly, when it\u2019s not.<\/p>\n\n\n\n

The core test for whether a DAML is required<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

According to UKFIU guidance, a DAML is required where all of the following conditions are met:<\/p>\n\n\n\n

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  1. You know, believe or suspect that property is criminal property<\/li>\n\n\n\n
  2. There is a future activity you intend to carry out<\/li>\n\n\n\n
  3. That activity would fall within the principal money laundering offences<\/li>\n\n\n\n
  4. You have control over whether the activity goes ahead<\/li>\n<\/ol>\n\n\n\n

    If these conditions are present, proceeding without a defence risks committing a money laundering offence under Proceeds of Crime Act 2002<\/a> (POCA).<\/p>\n\n\n\n

    1. Suspicion must already exist<\/h4>\n\n\n\n

    A DAML can only be requested where suspicion has already crystallised. UKFIU guidance is explicit that you cannot seek a DAML in these situations:<\/p>\n\n\n\n