Click a link
to find out why we are the complete solution for property professionals
Additional penalties for AML failures announced
30th July 2018
HMRC have announced they will now levy a Penalty Administration Charge in addition to any penalty imposed for failure to comply with anti-money laundering regulations.
According to HMRC “The charge is for costs of issuing penalties to businesses that do not comply with the Money Laundering Regulations.”*
Implemented on 25th July 2018, a penalty of up to £1500 will be levied for failures to comply with:
- customer due diligence
- client risk assessment
- money laundering policies, controls and procedures
- record keeping
And up to £350 for breaches such as:
- failing to register with HMRC
- failing to tell HMRC of changes to your business
- failing to provide information
The fines reveal much about HMRC’s focus when it comes to compliance.
It is not just the physical client checks that HMRC are looking for. It is easy to get hung up on getting hold of photo ID, or utility bills.
Agents must challenge themselves to better understand what risk is posed; whether that be from the client(s) and/or the nature of the transaction.
The charges indicate the same level of emphasis on the “why” as well as the “how,” making a demonstrable and documented audit trail a critical part of compliance.
The critical element is to; document both the process (in your risk assessments, money laundering policies and procedures) and the actual undertakings; retaining your records for the requisite 5 years after the end of the business relationship.
Compliance in a Box from Landmark is the estate agent’s AML toolkit, providing a consistent and documented AML process across your business. From one account you can undertake and evidence:
- verification of buyers and sellers within a minute
- enhanced due diligence where your risk assessment identifies it is needed
- confirmation of home owners
- retained documentation for the requisite 5 years… and more
For more information about undertaking and evidencing your compliance with the Money Laundering Regulations 2017, sign up below or please contact Compliance in a Box on 01524 220013.
*Source: Penalties and appeals for money laundering supervision
The client and experts view...
Latest news
How to write your AML risk assessment
The Money Laundering Regulations require estate agents to risk assess their business relationships and apply an appropriate level of investigation to ensure that they understand who their customer is, and why they are involved in the transaction. (more…)
Fines for failure to identify beneficial owners
Agents are falling foul of money laundering regulations by not having a process in place to identify third party ownership and beneficial owners. (more…)
NEWSFLASH: Funding doubles for industry regulator
The government have announced a significant funding increase for property industry regulator the National Trading Standards Estate Agency Team (NTSEAT).
There has long been criticism of a lack of resource in the team whose responsibility it is to police and enforce various regulations estate agents are governed by; including the Estate Agents Act 1979 and the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). (more…)
£22.5k fine for estate agent…
A recent news story highlights the risks posed by the Consumer Protection from Unfair Trading Regulations, otherwise known as CPRs. (more…)
CPRs; the opportunity
In our previous 2 blogs we have covered the definitions of the Consumer Protection from Unfair Trading Regulations (CPRs) and what the practical implementation of compliance involves. (more…)
Click the Apply button opposite to use our software on a trial basis...
- Location, location, location... the premium you pay for your house when taking into account the actual cost of re-b… https://t.co/WMK6tpsuAp
- It's always best to know whether the property you are selling is Freehold or Leasehold... Compliance in a Box from… https://t.co/wyNXmYyzNw
- How to write your AML risk assessment https://t.co/XxKAVsq3yt
- Multimillionaires row... right here in he UK! https://t.co/UdyPMrPcQf
- Changes to transparency rules for solicitors could bring about significant change in the #estateagency sector... ar… https://t.co/rNr08JUbJv
- Location, location, location... the premium you pay for your house when taking into account the actual cost of re-b… https://t.co/yDeO04Y86Q
- It's always best to know whether the property you are selling is Freehold or Leasehold... Compliance in a Box from… https://t.co/AkafNnohtk
- Multimillionaires row... right here in he UK! https://t.co/DpQTJXHK3D
- Changes to transparency rules for #solicitors could bring about significant change in the #estateagency sector... a… https://t.co/wVypBs5NES
- Home ownership among young people falls by 10% in a decade according to the ONS https://t.co/BT87sVQCr4
