Money Laundering – Are you compliant?

Countrywide Estate Agents have been fined £215,000 for failing to register themselves under the Money Laundering Regulations 2017.

The fine was imposed by HMRC and has been the largest fine to date imposed on this basis, thus indicating the seriousness that regulators now approach those not complying with Money Laundering Regulations.

It has been long understood that the Property Market is targeted by the criminal fraternity keen to launder monies raised through crime. Estate Agents are therefore at the forefront of what the Minister for National Security and Economic Crime termed ’a crucial line of defence’.

It is understood that this Estate Agency had failed to ensure that policies, controls and procedures were in place and also failed to conduct Due Diligence required on customers which included verification of ID provided at the outset of a transaction and keeping proper records.

Estate Agents have been described as one of the weakest links in the Anti-Money Laundering Regime. Reports made by Estate Agents to the National Crime Agency have been only 0.1% of the reports filed, leading the Treasury Committee to believe that Agents were not taking their Anti-Money Laundering duties seriously.

It is clear that HMRC will continue to regulate this area stringently and any Agency not doing enough to comply with Anti-Money Laundering Legislation will face fines.

For further advice and assistance please contact our Private Client Team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk