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:        
20 + 4 =

NCA figures show estate agents still under AML scrutiny

6th February 2018

The National Crime Agency has released figures identifying the number of Suspicious Activity Reports it has received from October 2015 to March 2017.

Previously released figures showed just 355 SARS were submitted by estate agents against the backdrop of 1.2m transactions.

In response to greater scrutiny from HMRC that figure has nearly doubled in the following 12 months and now represents 0.12% of all SARS submitted to the National Crime Agency.

Despite acknowledging that estate agents do not typically handle funds, in its guidance HMRC is clear about why the sector is under scrutiny:

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[1]

Since June 2017 estate agents have been required to undertake checks on purchasers as well as sellers before entering into a business relationship. The guidance here is clear; a seller must be checked prior to the property being listed. Purchasers must be checked prior to exchange, although many agents are now undertaking such checks at the point the offer is accepted, either informally or formally.

Such checks, known as Customer and Enhanced Due Diligence, form part of a process known as Know Your Customer (KYC) which encourages you to look at the transaction in the round and identify if there are any red flags, both in terms of the individual(s) you are dealing with and the transaction.

You should have a demonstrable audit trail and a risk assessment that details how and why you came to your conclusion in the initial stages of the business relationship. If something changes down the line you can reassess that decision and ultimately refuse to act on their behalf.

 

Compliance in a Box from Landmark helps agents streamline the compliance process into a few clicks from one place;

  • Electronic AML checks to apply CDD
  • Identify PEPs and those on sanctions lists
  • Foreign national checks for non-UK based clients
  • Land Registry title information to verify property ownership
  • Company checks to identify beneficial owners
  • Retained copies of all documentation with time & date-stamped audit trail for MLRO

Make sure you fully understand your transactions, mitigate your AML risk, and save your business time, with Compliance in a Box. Sign up below to register for your Landmark account, or contact Samantha Peacock on 01524 220013 / sam.peacock@landmark.co.uk

Register for more information

 

Verification

 

[1] 4.2 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/628696/Estate_Agency_Businesses_Guidance_.pdf

The client and experts view...

  • thumb1
Latest newsspeech Bubble

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…)

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.