Banks make 1,088 terror tip-offs

SARs reports are issued following suspicious financial activity

Banks and financial institutions in the UK made 1,088 reports of possible terrorist activity last year.

The figures were published in a report on Suspicious Activity Reports (SARs) by the agency that oversees them.

Paul Evans, who is responsible for SARs at the Serious Organised Crime Agency (SOCA), said targeting criminals' money would "hit them where it hurts".

There were a total of 220,484 SARs submitted for all offences in the 12 months up to October.

A report is made in the event of suspicions of money laundering or terrorist financing.

SARs are a key weapons for the government in combating money laundering by terrorists and organised criminals.

The majority of terrorism-linked tip-offs came from banks and building societies, but information was also provided by solicitors, accountants and even casino workers.

Value for money

Sir Stephen Lander, chairman of SOCA, conducted a review of the SARs structure in March 2006 and subsequently published 24 recommendations.

At a briefing on Wednesday, Sir Stephen said all the recommendations had now been addressed.

He also said the cost to SOCA of handling SARs was £7m annually, and that there were plans to enhance the department's IT capabilities at an extra cost of £10m a year - although Sir Stephen admitted that "we don't know if we've got the money yet".

Mr Evans added that the £7m cost of running the regime was value for money.

"SARs produces at least that amount of return," he said.

"Targeting the money is vital in the fight against both criminal and terrorist activity.

"By following the movements of illegal finance, we build knowledge of criminal organisations and hit them where it hurts."