Question
I act for the buyer in a conveyancing transaction and have today made a Suspicious Activity Report (SAR) to the Serious Organised Crime Agency (SOCA) and requested consent to proceed. We are due to exchange contracts tomorrow and the seller's solicitor is pressing me for reasons why we will be unable to exchange. Will I be guilty of 'tipping off' if I discuss the SAR with him?
Answer
Under S333C of the Proceeds of Crime Act 2002, disclosures between institutions, including disclosures from a professional legal adviser to another professional legal adviser will be permitted if all the following criteria are met:
- The disclosure is made to another lawyer in an European Economic Area state, or one with an equivalent anti-money laundering regime.
- The disclosure relates to a client or former client of both parties, or a transaction involving them both, or the provision of a service involving them both.
- The disclosure is made for the purpose of preventing a money laundering offence.
- Both parties have equivalent professional duties of confidentiality and protection of personal data.
It may not be appropriate to discuss the SAR with the seller's solicitor if you have any concerns about his compliance and/or his involvement in the suspicious activity.
For further information, please see section 5.8.2 of the Anti-money laundering practice note.