Businesses that register with HMRC for AML supervision must have documented Risk Assessment, Policies, Controls and Procedures (RA/PCP) – if these aren’t in place following 21 days of applying it will result in a rejected application.
HMRC is contacting all businesses that don’t have the necessary processes in place and advising procedures to complete an application so there are no further delays to becoming registered.
Policies, controls, and procedures
Property agents who need to register for AML supervision must have procedures in place to anticipate and prevent money laundering. This means preparing a comprehensive written policy statement to show how a business will manage the risks and detailed procedures to prevent money laundering. Staff must also be trained to understand and implement these policies.
An AML risk assessment covering clients, the business and how it operates must also be undertaken. To assist, the UK Government has provided guidance on how to prevent money laundering and terrorist financing.
Consequences of non-compliance
It is a criminal offence to provide estate agency services or rent out property valued at 10,000 euros (or equivalent amount) or more per month without being registered with HMRC for AML supervision.
The possible penalties are:
- a fine up to the statutory maximum of £5,000
- a prison sentence of up to two years and an unlimited fine, or both
AML compliance resources
Propertymark has a range of AML training and resources to support property agents in understanding and complying with their legal obligations. Furthermore, our team of experienced agency auditors are available to advise you 1:1 on compliance obligations, helping avoid the hazards that regularly generate fines worth tens of thousands of pounds.
Calm about Compliance brings our expertise, as the sector's leading professional body, into your office. Our team of experienced auditors will advise you 1:1 on your agency’s compliance, helping you avoid the hazards that regularly lead to local authority fines.