What’s a DAML?

A DAML (Defence Against Money Laundering) is a request for a legal defence made through the suspicious activity reporting regime when you believe carrying out a specific transaction could expose you to a money laundering offence.

This wording comes from the UK Financial Intelligence Unit’s (UKFIU) SARs Best Practice Guidance. UKFIU uses the term to describe a defence request made by a reporter who is seeking protection under the Proceeds of Crime Act 2002 (POCA) before carrying out a specific activity.

What a DAML actually is

A DAML isn’t a separate legal process and it’s not a different type of SAR. It’s simply a SAR with additional information included so that the UKFIU can decide whether a statutory defence applies.

According to the guidance, a DAML is relevant where:

• you know, believe or suspect that property is criminal property, and
• you are intending to carry out a future activity, and
• carrying out that activity could result in you committing a money laundering offence under POCA .

In those circumstances, you can request a defence from the UKFIU in relation to that specific activity.

Why DAMLs exist

UKFIU guidance recognises that, in the course of legitimate business, professionals can find themselves in a position where doing their job would expose them to criminal liability.

POCA recognises this risk and provides a defence mechanism. The DAML process exists to allow reporters to rely on that defence where appropriate.

The guidance is clear that DAMLs are about protecting the reporter, not approving the activity itself. Even where a defence is granted, it does not mean the funds are legitimate and it doesn’t oblige the reporter to proceed.

DAML and “consent”

You might hear DAMLs described as requests for consent. UKFIU explains that:

• a DAML is the same as “appropriate consent” under section 335 of POCA, and
• the terminology has evolved to avoid the impression that the UKFIU is giving permission or approval.

A granted DAML provides a defence to specific money laundering offences only. It does not give clearance, approval or confirmation that the activity is safe or lawful in a wider sense.

What makes a DAML different from a standard SAR?

While you’ll still use the same form and process as a standard SAR, the key difference is that a DAML is tied to a specific future act. 

A DAML is submitted because there is a transaction waiting to happen and proceeding without a defence could itself be an offence. A standard SAR is submitted to report suspicion for intelligence purposes. 

UKFIU is clear that a DAML must always relate to:

• criminal property that already exists, and
• a future, clearly specified activity that the reporter controls.

DAMLs cannot be used to ask what to do, to cover open-ended activity or to compensate for incomplete due diligence.

What happens after a DAML is submitted

Once a DAML is submitted, it enters the notice period. This starts on the first working day after submission and lasts for seven working days. During this period:

• the specified activity must not be carried out, and
• the UKFIU assesses the request and may seek further information.

If the UKFIU refuses the request, a moratorium period of 31 calendar days applies. During this time, the activity must still not proceed. During the moratorium period law enforcement will investigate and endeavor to take action against the criminal property. The 31 day period can be extended by the court if law enforcement deem it necessary for further investigations.

The UK Financial Intelligence Unit guidance to help reporters seeking a defence under POCA (December 2025) explains that:

“As with the initial 7-working day notice period, until you receive a granted letter or until the expiry of the moratorium period, whichever is earlier, you do not have a defence to the money laundering offence you are proposing to undertake and risk committing an offence if you proceed with the activity.”

What a DAML does not do

The guidance is explicit about the limits of a DAML. A DAML does not:

• provide a defence to other criminal offences;
• override court orders;
• remove regulatory or ethical obligations;
• act as a substitute for customer due diligence;
• allow tipping off; or
• provide advice on what action should be taken.

It applies only to the specific money laundering offences set out in POCA and only to the activity described in the request.

Why DAMLs matter for regulated professionals

DAMLs can arise in everyday professional work, not just exceptional cases. They commonly relate to payments, transfers, property transactions, distributions or other dealings with funds where suspicion has crystallised.

UKFIU guidance stresses that failing to follow the DAML process, or proceeding during a notice or moratorium period, risks committing a money laundering offence and may also result in regulatory scrutiny.

Final thoughts

A DAML is not a loophole and it’s not an escalation. It’s the practical mechanism used to access a statutory defence that already exists in law.

UKFIU guidance makes clear that DAMLs are about stopping, disclosing and waiting when a future transaction could expose a professional to criminal liability. 

Seen in that light, a DAML is simply the AML framework doing what it was designed to do, protecting professionals while allowing law enforcement the opportunity to act.