DAML Requests: How to Get a Defence from the NCA

A defence against money laundering (DAML) request lets a firm ask the UK Financial Intelligence Unit (UKFIU) at the National Crime Agency (NCA) for a defence before it carries out an act that could otherwise be a money laundering offence. Done properly, it protects the firm and its people. Done badly, it wastes the notice period, leaves the client waiting and can leave the firm exposed. This guide explains how a valid request is made and what happens next, using the UKFIU's guidance "Chapter 3: Understanding DAMLs and DATFs" (version 1.1, December 2025). It is general information, not legal advice.

It builds on our guides to SARs and the tipping off offence and to the DAML exemptions for accountants, which explain when a request is unnecessary. For the mechanics of filing in the portal, see our SAR Portal guide.

What a defence is, and what it is not

According to the UKFIU guidance, a DAML covers a future activity where the reporter suspects the property involved is criminal property and that going ahead risks a money laundering offence under the Proceeds of Crime Act 2002 (POCA). The terrorist financing equivalent is a defence against terrorist financing (DATF) under the Terrorism Act 2000. The guidance is firm that a defence is not approval, permission or clearance. It does not oblige you to act, it does not confirm whether the property is criminal, and it does not cover other duties such as those under the Money Laundering Regulations. It is also no substitute for customer due diligence or a risk-based approach. The guidance notes that granted letters now refer to a "defence", while refusal letters still use the word "consent".

The three essential elements

The UKFIU says a defence request needs three things: the grounds for your knowledge, suspicion or belief of money laundering; a description of the property; and a description of the prohibited act. The UKFIU does not infer or assume anything, so each must be explicit. The request is made as a SAR, choosing POCA or the Terrorism Act at the start and answering "yes" to the defence question. A request written into the reason for suspicion field does not count, and no defence results.

Describing the prohibited act

The guidance calls this the most commonly misunderstood element. The prohibited act is the specific future activity for which you want a defence. According to the guidance it must:

• be in the future and specific, clearly described and free of jargon;
• show how it could amount to an offence;
• state the total value (estimates are acceptable if labelled), the date, and where the funds are going, including whether they leave the UK; and
• have a UK link, such as a UK party, a UK entity or UK-located property.

The UKFIU will not consider "either/or" requests, so the exact act must be stated. For activity that continues, the guidance says the date should ideally be no longer than 12 months ahead. It gives vague wording such as "act for the client", "use funds at the customer's direction" or simply "money laundering" as examples of poor descriptions, and named amounts, specific destinations and bounded timeframes as examples of good ones.

The notice period

The notice period is seven full working days, starting on the first working day after you submit. During that time you must not carry out the prohibited act, although other work on the file, such as letters or searches, can continue. The UKFIU triages requests by risk, priority, law enforcement interest and asset recovery, and it may ask for more information or close a request that is incomplete or unanswered. A closed request must be resubmitted, which restarts the statutory clock.

The guidance says you will only get an express response during the notice period if the request is refused or expressly granted. Silence means a defence arises at the end of the notice period. Refusals are given by phone first and then by email, so the contact details on your portal account must be current. Only designated UKFIU officers can grant or refuse, and without a granted letter or the expiry of the notice period there is no defence.

The moratorium after a refusal

A refused DAML starts a 31-calendar-day moratorium from receipt, during which law enforcement can take action against the property. The guidance explains that the moratorium can be extended by court order, that the reporter and subject are told in advance and can make representations, and that if an extension application is made the moratorium continues until it is heard. If an extension is refused, the UKFIU grants a defence immediately. The guidance states that DATFs have no moratorium: there is no defence until a grant, and refused requests are kept under review.

Requests that will not work

The UKFIU guidance lists situations where a request is not valid, including where there is no suspicion of criminal property, where the property only becomes criminal after the activity, where the request is retrospective, where the concern is an offence outside POCA or the Terrorism Act (tipping off is an example), where the request is about starting or keeping a business relationship, and where the action is undecided, hypothetical or "either/or". It also says suspicion cannot be inherited from law enforcement.

During the notice period and after a decision

The guidance says not to chase for updates during the notice period. Expedition may be possible for significant financial loss, business collapse or severe personal consequences, but it is not guaranteed. Material changes should be notified by email, and a new request may be needed. A request can be withdrawn only while the notice period is live, you still control the property and no decision has been issued.

A granted letter is not permission to proceed. It covers only the specific offences under POCA or the Terrorism Act, not other offences such as those under the Money Laundering Regulations 2017, the Bribery Act 2010 or the Fraud Act 2006, and it does not make the funds legitimate. The UKFIU may grant some activities and refuse others, so read the response carefully. If a request is refused, do not transact and keep the account frozen until a court order, the end of the moratorium or a UKFIU grant.

Controls for your firm

The guidance warns that reporters need systems and controls to stop the prohibited act during the notice and moratorium periods, and it flags out-of-date portal contacts, reliance on one person's inbox or voicemail, and overrides of account restrictions as common failures. It recommends a shared mailbox. If the act is carried out in breach, the guidance says to report promptly to the UKFIU and to your AML supervisor. Our suggestions for an accountancy firm are:

• name a deputy to the MLRO who can monitor the portal contact details and mailbox, as set out in our guide to the MLRO's role;
• diarise the notice period and any moratorium, counting working days carefully around bank holidays;
• put a hold on the affected client money or transaction so the act cannot happen by accident; and
• agree in advance what client-facing staff can say, without tipping off.

Frequently asked questions

How long should I plan for?

Plan for the full seven working days. The UKFIU guidance says not to assume an early decision.

What if I hear nothing?

The guidance says a defence arises at the end of the notice period. It advises confirming that the period has expired, checking for bank holidays, and checking that your inbox and voicemail are working before proceeding, if still appropriate.

Does a DAML apply to terrorist financing too?

The equivalent is a DATF under the Terrorism Act 2000. It is handled by a different UKFIU team and has no moratorium.