What is a DAML?
A defence against money laundering (DAML) is a request to the National Crime Agency (NCA), made through a suspicious activity report, for a defence before you do something that could otherwise be a money laundering offence, such as completing a sale. The NCA has 7 working days to refuse. If it refuses, a 31-day moratorium follows.
A DAML used to be called “consent”. It is not an approval of the transaction or the client: it only gives you a defence to the main money laundering offences for the act you described.
The UK rules
| Rule | What it says | Where |
|---|---|---|
| Prohibited acts | Concealing or transferring criminal property, entering into an arrangement that helps someone else with it, or acquiring, using or possessing it | POCA ss327–329 |
| Authorised disclosure | A report to a nominated officer, the police or a customs officer about criminal property, made before you do the act (or during or after it in limited cases, on your own initiative and as soon as practicable) | POCA s338 |
| Notice period | 7 working days, starting with the first working day after the disclosure. Weekends, Christmas Day, Good Friday and bank holidays do not count | POCA s335(5), (7) |
| Deemed consent | If no refusal arrives within the notice period, you are treated as having consent | POCA s335(3) |
| Moratorium | If the NCA refuses, a 31-day moratorium starts on the day you receive the refusal. When it ends, you are treated as having consent | POCA s335(4), (6) |
| Extensions | A court can extend the moratorium by up to 31 days at a time, by no more than 186 days in total on top of the first 31 days | POCA s336A |
Sources: POCA section 335; section 336A; section 338.
What this means for a small firm
- Stop before you act. If you suspect the funds are criminal property and you are about to handle them or help a transaction complete, your MLRO should request a DAML first.
- Plan for the timings. Up to 7 working days, and possibly 31 days more, can push back an exchange or completion date. Build that into what you tell the other side, without revealing why.
- Describe the act precisely. The defence only covers the act you set out in the request, so say exactly what you want to do, for example “transfer the £25,000 deposit we hold to the seller’s solicitor”.
- Say nothing to the client. Revealing the request can be tipping off. Use neutral wording, agreed with your MLRO.
- Record everything: the internal report, the request, the NCA’s reply or the date the notice period ended, and what you did next.
DAML requests are made through the NCA’s SAR Portal. The NCA’s UK Financial Intelligence Unit publishes guidance on DAML requests and has a dedicated contact for them.
Frequently asked questions
How long does a DAML take?
The NCA has a notice period of 7 working days from the first working day after your request. If it does not refuse within that time, you can proceed. If it refuses, you must wait for the 31-day moratorium to end, unless a court extends it.
Is a DAML the same as NCA approval?
No. A DAML gives you a defence to the money laundering offences in POCA ss327–329 for the act you described. It does not mean the NCA approves the client or the transaction, and your other legal and regulatory duties still apply.
What is the difference between a SAR and a DAML?
Every DAML is made through a SAR, but not every SAR asks for a DAML. You only need a DAML when you are about to do something that could be a money laundering offence.
Can I tell the client why completion is delayed?
Not the real reason, if that would reveal the report and is likely to prejudice an investigation. Give a neutral, truthful explanation, such as that your checks are ongoing.
How AML Buddy helps
AML Buddy does not make SARs or DAML requests. It helps earlier: your client completes identity, address, sanctions, PEP and adverse media checks through one secure link, so questions about a client surface before exchange rather than on completion day. See pricing.