Blog 1: What is the risk?
25th January 2019
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.
In its guidance ‘Anti Money Laundering Supervision: Estate Agency Businesses’ HMRC outline agents should have a process in place to
assess the risks that your business may be used for money laundering or terrorist financing, and put in place appropriate measures to manage and lessen those risks. (3.1)
Over the course of 3 blogs, Director of Agency Services, Ben Robinson, will consider what estate agents should be thinking about when it comes to identifying and managing risk, and what processes they can put in place to ensure they comply with the AML regulations.
What is the risk?
Money laundering is the process of legitimising illegally obtained funds or terrorist financing. Rather than stockpiling cash, criminal organisations invest in legitimate business ventures to distance themselves from the source of the funds.
These investments pump funds back into illegal activity, perpetuating the cycle.
Property is a prime target for money laundering given the vast sums that can be legitimised in a single transaction, and on an ongoing basis through rental income.
Although we might consider the issue to be primarily London-centric, the reality is that criminal organisations exist in every town, and their funds can come from drugs, fraud or organised crime etc. This is not an issue associated solely with foreign investors.
It is estimated that £100bn is laundered through the UK every year.
In response the UK government has taken steps to tackle the issue head on. It has introduced greater scrutiny on those who sit on the front line of property transactions, with a particular focus on estate agents, solicitors and accountants.
In guidance produced by HMRC for estate agents, they outline why the focus on estate agents:
Estate agency businesses do not commonly handle the funds used to buy a property. However, they are a key facilitator in a property sale and come into contact with both parties to the transaction at an early stage and so are in an ideal position to identify suspicious activity (4.2)
And the scrutiny isn’t going away any time soon.
Regulated entities are required to submit a Suspicious Activity Report (SAR) where there is any suspicion of money laundering. In its 2018 Annual Report The National Crime Agency, who are responsible for policing the UK’s anti-money laundering regime, report that of the 463,938 SARs submitted from April 2017 to March 2018, just 710 were from estate agents.
In our next blog we will look at what steps you might take to identify money laundering risk in your business.
For more information about how to understand the risks posed by money laundering
- download our template risk assessment here
- book your FREE 15 minute AML compliance consultation to discuss your own circumstances
- Sign up below or contact us to find out more about how Landmark can help you comply with the Money Laundering Regulations on 01524 220013
Latest news
1/2 Day AML/CPR Courses for Estate Agents
Helping you stay the right side of regulation
Landmark and Michael Stephen Day of Integra Property Services host a 1/2 day training course on 27th & 28th March in Manchester and Milton Keynes. Landmark are offering an 18% discount on the standard course fee. CLICK HERE to book your ticket(s). (more…)
Blog 3: Implementing your 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…)
Blog 2: What are HMRC Looking for?
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…)
Blog 1: What is the risk?
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…)
Case Study: Noise issue could cost agent £9000
Our latest case study come from a recent news item to have hit the industry and national press.
A disgruntled tenant is claiming £9,000 in damages from an agent and landlord who, in his litigation, he claims rented him a flat with an excessive noise issue. (more…)


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

- Good start to the day at #NAEAconf... at least there's no snow this year! Come on over to the Landmark stand to spe… https://t.co/WHqiuzaMbx
- What would it cost to live in Batman's Wayne Manor... or Beauty and The Beast's castle? What about Eastender's Albe… https://t.co/taoxwT5ahT
- A room with a.... boo? This converted church features a graveyard in the front garden! And the asking price has bee… https://t.co/qcs8eb8S5e
- Check out these top tips if you are looking at investing in #property https://t.co/SMiba29qEi
- Looking forward to showing off our BRAND NEW version of @Metropix @PropertymarkUK conference in #London on 14th Feb… https://t.co/VacMfehtYq
- Sage advice on anti-money laundering and consumer protection regulations from @ETSOSFORAGENTS and @integraps... joi… https://t.co/9Rkicy9zuE
- Save 18%! Book your space now on our AML & CPR Compliance courses run alongside industry expert Michael Stephen Day… https://t.co/dVpxKLDsNc
- Good start to the day at #NAEAconf... at least there's no snow this year! Come on over to the Landmark stand to spe… https://t.co/ZPSBGhqyRU
- What would it cost to live in Batman's Wayne Manor... or Beauty and The Beast's castle? What about Eastender's Albe… https://t.co/8szyeLIkGx
- A room with a.... boo? This converted church features a graveyard in the front garden! And the asking price has bee… https://t.co/KkqZJC6uzH