DAML Exemptions for Accountants: Paying Away and Mixed Property
How the paying away and mixed property exemptions work for accountants, what they do not change, and a practical process for handling suspicions.
When an accountant suspects that a client's money or property comes from crime, the usual route is to submit a suspicious activity report (SAR) and, where the firm needs to carry on with a transaction, to ask the National Crime Agency (NCA) for a defence against money laundering (DAML). Since the Economic Crime and Corporate Transparency Act 2023, there are also some exemptions that let regulated firms proceed in specific situations without making a DAML request. This guide explains two of them, the paying away exemption and the mixed property exemption, along with the related reporting defence and the limits that matter for accountants. It draws on the government's guidance on the exemptions and on the NCA's published information. The detail is technical and the guidance is updated, so read the current text and speak to your supervisor before you rely on any exemption. This is general information, not legal advice.
Why DAMLs and exemptions exist
Under the Proceeds of Crime Act 2002 (POCA), dealing with property you know or suspect is criminal can be an offence. A DAML request asks the NCA for consent to go ahead with an act that would otherwise risk one of those offences. The NCA says its SAR Portal is available 24 hours a day, and reports that it receives more than 850,000 SARs a year, so the system is under heavy load. The exemptions were introduced to remove the need for a DAML request in some lower-risk, routine situations so that the NCA can focus on cases that matter.
The paying away exemption
For the regulated sector, the paying away exemption is set out in sections 327(2E), 328(7) and 329(2E) of POCA. In broad terms, it allows a firm to pay away amounts up to a financial limit without making a DAML request, where certain conditions are met. According to the government's guidance, the threshold was raised from £1,000 to £3,000 on 31 July 2025.
The firm must have carried out customer due diligence under regulation 27(1)(a) of the Money Laundering Regulations 2017 first. In other words, the exemption is not a shortcut around onboarding checks. It sits on top of them. Read the exact conditions in the guidance, because they decide whether a particular payment qualifies.
The mixed property exemption
The mixed property exemption deals with the situation where legitimate and suspected criminal money are mixed together, for example in a client account. Under the government's guidance, the firm can proceed provided it retains at least the value of the suspected criminal assets. It cannot be combined with the paying away exemption in the same transaction. If both could apply, choose the one that fits and note why.
The reporting defence linked to immigration status checks
Section 330 of POCA, which deals with failing to disclose in the regulated sector, also includes a defence connected to immigration status checks. This is a niche point for most accountancy firms, but if you carry out such checks, read the government's guidance on how the defence works.
What accountants cannot use
The government's guidance also covers an operating account exemption. That is not available to accountants, so do not assume that every exemption listed in general guidance applies to your firm.
What does not change
An exemption removes the need for a DAML request in a defined situation. It does not remove the duty to report. Failure to disclose is an offence under sections 330 and 331 of POCA, and on indictment the maximum penalty is five years' imprisonment. Tipping off is covered by sections 333A and 342, so you must not let the client know that a report has been made or that an investigation is under way.
A practical process for a small firm
- Escalate internally first. Staff should report concerns to the nominated officer or money laundering reporting officer (MLRO), who decides what to do. Our guide to the MLRO role in an accountancy firm sets out that decision-making role.
- Complete customer due diligence. Confirm that it is up to date before you consider any exemption.
- Test the exemption conditions. Write down which exemption you are considering, which conditions apply, and why they are met.
- Decide whether to report. The NCA cannot advise you on whether to submit a SAR, so raise doubts with your professional supervisor. Our guide to suspicious activity reports explains the reporting process.
- Keep records. Record the decision, the date and who took it, in a place the client cannot see.
Training matters here, because the rules are easy to misapply under time pressure. See our CPD courses for AML training, and our AML and KYC guides hub for related guides.
Frequently asked questions
What is a DAML?
A defence against money laundering. It is a request to the NCA for consent to carry out an act that might otherwise be a money laundering offence.
What is the paying away threshold?
The government's guidance says it was raised from £1,000 to £3,000 on 31 July 2025. Check the current figure.
Do the exemptions remove the duty to report?
No. Failure to disclose remains an offence under sections 330 and 331 of POCA, with a maximum of five years' imprisonment on indictment.
Can the mixed property exemption be used with paying away?
Not in the same transaction, according to the government's guidance.
Can the NCA tell me whether I should submit a SAR?
No. The NCA cannot advise on that, so ask your professional supervisor if you are unsure.
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