HM Revenue and Customs (HMRC) has announced that fines totalling over £1.6 million have been issued for a variety of breaches including missing documentation, incomplete due diligence, and failures to recognise specific risks, such as Politically Exposed Persons, high risk jurisdictions, companies, trusts and sanctions.

Every two years, the European Commission assesses the risks of money laundering and terrorist financing affecting both the EU internal market and cross-border activities. As a member of CEPI, the European Association of Real Estate Professionals, we work with them to provide the perspective of the UK market.

Very large property agencies, based on their UK revenue, will see contributions to the Levy double from April 2024 after receipts for the period April 2022 to March 2023 showed a shortfall against the target of raising £100 million per year, which is used as long-term sustainable funding to tackle economic crime.

A consultation launched by HM Treasury could be the catalyst for change in the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 and end the ongoing problem of access to appropriate banking services for letting agents, which is the result of banks failing to properly understand how client money protection and anti-money laundering apply to unregulated firms.

Email and secure messaging are HMRC’s main means of contacting agents about their AML supervision. They provide regular updates and alerts to support compliance with the Money Laundering Regulations and notifications if an account requires action or needs to be reviewed, so it is crucial that contact email addresses are kept up to date.

The UK Government wants to improve the transparency of land ownership involving trusts, which will prevent unnecessary barriers to the sales process. Propertymark generally supports these efforts that will ensure agents can effectively help money laundering and economic crime in the UK property market. Agents, however, must be included in the list of professionals who can access the enhanced ownership details.

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) received Royal Assent on 26 October 2023 and has made provision for changes to the Register of Overseas Entities (particularly to address and land information) that will impact almost all overseas entities in some way, although no timeline for implementation has yet been published.

The UK Government has amended the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, to send a clear message to regulated firms about how to treat politically exposed persons (PEPs) when carrying out enhanced due diligence checks. The new regulations came into force on 10 January 2024.

HM Revenue and Customs (HMRC) has seen a rise in new applications for AML (anti-money laundering) supervision where applicants do not have the required risk management procedures in place which is a barrier to becoming compliant.

A debate in Westminster Hall on undesignated client accounts brought by the Rt. Hon. Kelly Tolhurst, the Conservative MP for Rochester and Strood, with input from Propertymark, resulted in assurances from HM Treasury that action will be taken to improve guidance and reform anti-money laundering procedures if necessary and end the unfair denial of banking services to property agents.

Proposals to address difficulties in accessing banking services are being developed and a consultation will begin later in 2023. Following our letter to the Chancellor of the Exchequer in August 2023, Treasury Lords Minister Baroness Penn responded seeking our engagement through this process.

Propertymark strongly supports the proposed Office for Professional Body Anti-Money Laundering Supervision (OPBAS) model in response to the HM Treasury’s consultation after significant weaknesses and inconsistencies have been identified that have left the UK vulnerable to counter-terrorism.

HM Treasury has launched a consultation setting out four possible models for AML supervision with potential implications for sales and letting agents, property auctioneers and high-value dealers across the UK. The proposals are in line with the UK Government’s commitment to the Economic Crime Plan 2023-2026 and they are now seeking views on the potential benefits and disadvantages of each option.

The introduction of the Renter's (Reform) Bill resulted a lot of media coverage, with agents and landlords voicing valid concerns about the potential impact of future legislation on their businesses. However, it is important to note that the Bill has not yet become law and is still undergoing scrutiny and possible amendments.