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:        
33 + 2 =

HMRC Update on Anti Money Laundering Regulations

19th May 2015

HMRC have now confirmed that agents should establish who the beneficial owners are of any property for sale. Once this has been done the agent should then take the necessary measures to confirm and verify their identity. It is important that agents have a process and audit trail in place to be able to demonstrate that both these steps have been taken.

This confirmation has come following a recent HMRC agent audit. Although HMRC will not comment on any specific cases they have provided general guidance at our request which can be found below:-

“With regards to your enquiry, I cannot speak specifically about the advice that may or may not have been given  to a third party. I can confirm that  under the Money Laundering Regulations 2007 Part 2 it details the meaning of customer due diligence.  I will detail below this extract to assist you in understanding what is required.

Part 2

5. “Customer due diligence measures” means-

(a) identifying the customer and verifiying the customer’s identity on the basis of documents,data or information obtained from a reliable and independent source;

(b) identifying , where there is a beneficial owner who is not the customer, the beneficial owner and taking adequate measures, on a risk-sensitive basis, to verify his identity so that the relevant person is satisfied that he knows who the beneficial owner is, including,  in the case of a legal person, trust or similar legal arrangement, measures to understand  the ownership and control structure of the person, trust or arrangement; and

(c) obtaining information on the purpose and intended nature of the business relationship.

In addition to the above Section 6 of the Reg’s details the meaning of beneficial owner.

HMRC will expect all Estate Agents to complete verification checks on  the individual, individuals’ or owners of the legal entity  as the owners or beneficial owners of the property. They must keep evidence of the checks they have  completed. The Agent themselves must risk assess their business and put adequate checks in place.  If they are suspicious that there is a risk of money laundering or terrorist financing they must raise a Suspicious Activity Report and lodge it with the National Crime Agency.

I hope this information details the requirements.”

‘Compliance in a Box’ gives you access to a suite of services that help agents to comply with both the Consumer Protection and Anti-Money Laundering Regulations. The simplest way to establish the beneficial owners of any given property is to obtain the Title of the property which can be ordered through our platform. This will also establish upfront, any potential restrictions that might affect the eventual sale of the property. Furthermore once beneficial owners of a property have been established, you can carry out customer due diligence checks through our fully complaint Anti-Money Laundering checks. An electronic audit trail of all actions and orders are recorded and date stamped within our system, demonstrating your due diligence in the event of an HMRC audit.

For information on how we can help please contact us or complete the form below:

Register for more information

 

Verification

The client and experts view...

  • thumb1
Latest newsspeech Bubble

CPRs; the practicalities

In our previous blog, we looked at the definitions outlined by the CPRs. In this blog we’ll look at the practical application of CPRs, the sorts of scenarios that come up day in day out and what lessons we can learn from any enforcement action taken. (more…)

CPRs; the implications

In 2014 The Properties Misdescriptions Act was repealed and replaced with the Consumer Protection from Unfair Trading Regulations, otherwise known as CPRs.

The main change was a shift in focus away from caveat emptor, or buyer beware, to greater transparency for those involved in the purchasing or renting of property where agents are historically famous for flowery language and an economic use of the truth! (more…)

Additional penalties for AML failures announced

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. (more…)

What do ID documents tell us?

Customer Due Diligence (CDD), which forms part of Know Your Customer or KYC, is an important tool in the estate agent’s armoury when it comes to fulfilling their obligations under the Money Laundering Regulations. (more…)

Residential Abortive Transaction Insurance

ETSOS are delighted to announce a tie up with insurance brokers Northcott Beaton to provide their residential abortive transaction insurance.  (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.