X
etsos

Free trial Sign-up

Please leave your name and email and we'll be in contact shortly.

Name

Company

Contact Number

Email

Please complete the sum:        
38 + 4 =

AML Fines for estate agents published

5th April 2019

Estate agent anti-money laundering (AML) compliance is under scrutiny again following the publication of figures detailing the fines levied for AML non-compliance.

For the first time, HMRC have revealed £2.5m of penalty notices have been issued since the implementation of the 4th Money Laundering Directive in June 2017 across all sectors.

In its “List of businesses for tax year 2018 to 2019 that have not complied with the 2017 money laundering regulations” HMRC reveal the breaches include

  • failing to ensure policies, controls and procedures at group level
  • failures in conducting due diligence
  • failures in the timing of verification and proper record keeping
  • failures in carrying out risk assessments

And the scrutiny isn’t going away.

Despite greater engagement from the property sector, less than 1% of all Suspicious Activity Reports were submitted to the National Crime Agency by estate agents and solicitors combined according to the latest figures covering April 2017 to March 2018.

2019 has seen the launch of “Flag it up,” the latest campaign to bring greater awareness of money laundering risk to the legal, property and accountancy sectors.

As with all compliance estate agents need to be documenting and evidencing their policies and processes.

The recent fines highlight critical failures by the agents identified in their procedure.

On a practical level you must have an Anti-Money Laundering Policy in place, which includes a risk assessment that outlines how you complete your Customer Due Diligence, what circumstances you would consider to be high risk, and how you would deal with those situations.

You must conduct due diligence at the appropriate time. For vendors this is before listing the property, for purchasers this is between offer acceptance and exchange.

You need to factor in both the individual(s) involved, and the circumstances surrounding the transaction. In most cases this is self-evident (up-sizing/downsizing/relocation/investment etc) but where the circumstances flag a risk, you will need to demonstrate how you have applied a higher level of due diligence.

Finally you must retain your records for 5 years from the end of the business relationship.

For more information about compliance with the Money Laundering Regulations CLICK HERE to book your FREE 15 minute no obligation Compliance Consultation with Landmark.

 

 

Compliance in a Box is the pay-as-you-go compliance toolkit for estate agents, with a range of electronic solutions that demonstrate a ‘risk-based approach’ to client verification alongside a full time and date-stamped audit trail.

Landmark customers get access to a range of training and template AML materials to help them stay the right side of regulation Contact Samantha Peacock today on 01524 220013 / sam.peacock@landmark.co.uk or sign up below to find out more.

Find out more about Compliance in a Box

 

Verification

The client and experts view...

  • thumb1
Latest newsspeech Bubble

Government Confirms New Regulations and Qualifications for Estate Agents Will Happen

The government has accepted the proposals of the Regulation of Property Agents (RoPA) with wide-spread consequences for estate and letting agents.

The proposals reach right into the heart of the industry to affect regulation, training and licensing.

 

(more…)

Fears of Tougher Regulations and Unjust Costs Mount Ahead of Government Announcement

Estate Agents are waiting for the big reveal on Monday after Lord Best has admitted some firms could close when the regulation of property agents (ROPA) makes its recommendations to the Government early next week.

Lord Best, the chair of ROPA, has already outlined the working group’s desire for more regulation.

(more…)

[NEWSFLASH] Agent Charged DOUBLE Over AML Registration Mistake

Property Industry Eye (PIE) has highlighted the case of an estate agent who has fallen foul of HMRC and been charged double.

On 4th April, with plenty of time to spare, Hayman-Joyce renewed their annual HMRC registration. They paid the fee and thought they’d ticked all the boxes.

(more…)

Compliance in a Box: The Natural Remedy for Your AML Headache

Estate agents around the country are realising that the new 5th AML Directive goes deep. There’s a lot of work involved in becoming compliant. And the penalties for non-compliance, either deliberately or through confusion, are severe. (more…)

AML Checks: Guide to Uploading the Passport.

The campaign against money laundering has seen the HMRC issue £2.5m of penalty notices since June 2017.

Making sure you’re compliant is vital.

When it comes to carrying out your checks, we supply AML reports as part of our Compliance in a Box service. (more…)

divider
newsletter sign-up

Sign up for our e-newsletter

Name
Company
Email Address
trialTop

trial sign-up

Click the Apply button opposite to use our software on a trial basis...

trialBottom
  • etsosnews

  • etsosnews

  • Linkedin Twitter Facebook
    This site uses cookies. Find out more about this site’s cookies.