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:        
1 + 8 =

NAEA comments on client verification of buyers and sellers

13th October 2016

The NAEA have given their strongest indication yet that the 4th Money Laundering Directive will place a greater onus on estate agents and lettings agents to undertake client verification on both their sellers and buyers, and landlords and tenants.

During a panel session at The Property Ombudsman Conference, Mark Hayward, Managing Director acknowledged that “in all likelihood it (the 4th Money Laundering Directive) will include vendors and buyers, as well as landlords and tenants.”

Mark Hayward made reference to HM Treasury’s recent consultation on the implementation of the 4th Money Laundering Directive in which the question of client verification is specifically discussed:

7.13 In the UK, estate agents tend to act only for one of the parties to a transaction. As a result, the estate agencies often carry out customer due diligence on one of the parties to a transaction – their customer – who may be a vendor or a purchaser. The government has received representations that this is a weakness in the UK’s AML/CFT regime. This is because, for example, an agent acting for a vendor may not detect potential criminality on the side of a purchaser, and vice versa. Of course, an estate agent will be acutely aware of the need to report suspicious activity in accordance with the applicable money laundering and terrorist financing offences.

7.14 A similar issue could apply to letting agents as discussed above. Landlords are generally considered to be the main customer of a letting agent rather than a prospective tenant. Again, a letting agency will be acutely aware of the need to report suspicious activity in accordance with the applicable money laundering and terrorist financing offences.

With the following questions asked as part of the consultation:

Question 43: Do you think that letting agents should apply CDD to both contracting parties?

Question 45: Should estate agency businesses apply CDD to both contracting parties in a transaction in which they act as intermediaries?

The consultation invites views and evidence to inform the implementation of 4MLD and closes on 10th November 2016.

For more information and to respond click here: https://www.gov.uk/government/consultations/transposition-of-the-fourth-money-laundering-directive

The client and experts view...

  • thumb1
Latest newsspeech Bubble

5 days of FREE AML training

HMRC have revealed details about the fines it has levied on estate agents for AML non-compliance. To help estate agents stay the right side of regulation, Landmark are offering 5 days of FREE AML training for a limited time.  (more…)

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  FREE 1/2 day training course on 27th & 28th March in Manchester and Milton Keynes. (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…)

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.