Among the list of businesses failing to comply with money laundering regulations (MLRs) were property agents failing to comply with regulatory needs to register with HMRC at the required time – leaving some businesses with thousands of pounds to pay.
One agent was fined £6,300 by HMRC for failing to apply for registration at the required time, while another had been found to have failed to conduct due diligence as well as issues with timing of verification, leaving them with £5,250 to pay as a result.
A third agent had been found to breach a variety of regulations, including failing to have the correct policies, controls and procedures as well as failing to conduct due diligence – an error which cost the agent £6,591.
We have developed an Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Questionnaire to help you highlight possible areas for improvement in your business.
Anti-money laundering for agents
As per the Fifth Money Laundering Directive, all property agents and auctioneers must put in place procedures to anticipate and prevent money laundering. This reduces the risk that criminals may exploit businesses for financial crime.
To defend against money laundering, there is a legal responsibility to undertake Customer Due Diligence (CDD) on the buyer and seller before establishing a business relationship or carrying out the transaction.
We have created a number of resources, forms and training options for agents and auctioneers to comply with their Anti-Money Laundering obligations.