While we actively advocate for more precise guidelines around AML (Anti-Money Laundering) registration and understand the complexities of the current process, it's crucial, however, that agents understand the severity of the consequences of failure to register.
The penalties for non-compliance are significant and can have a lasting impact and agents could face a prison sentence of up to two years or an unlimited fine.
Preventing economic crime
Since January 2020, it has been a criminal offence to trade as an estate agent, high-value dealer, or property auctioneer without being registered with HMRC for AML supervision. This also applies to letting agents dealing with properties with monthly rents equivalent to €10,000 or more.
We know that property bought with laundered money often remains empty, which will negatively impact the wider community.
How Propertymark can help
Agencies and agents alike know that compliance means trust and will do what it takes to maintain customer confidence; however, many agents still do not know whether they need to register for AML supervision. We know that resources are stretched, and agents are not always up to date on every area of compliance.
Propertymark is dedicated to supporting its members in achieving and maintaining compliance with money laundering regulations, and we have a wealth of resources and comprehensive training, to guide agents through best practices and ensure knowledge and tools to meet AML obligations. We aim to empower our members to navigate AML regulations confidently.
Our Calm About Compliance audit support service combines a friendly audit service with 1:1 advice, ensuring your agency can navigate complex government regulations, avoid expensive fines that cost tens of thousands of pounds, and protect you against uncertainty.
The Propertymark Compliance Team is reviewing our members' AML compliance status and will be in contact to confirm if they have any queries or are unable to locate the company on the HMRC public register. Whilst it’s a reminder at this stage disciplinary action may be considered if registrations are not completed.
Calm about compliance
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.
Increased AML guidance
Propertymark understands thresholds around supervision continue to create uncertainty, and our research found that 96% of respondents would welcome more prescriptive guidance on how to meet their obligations.
We continue to push back on behalf of our members against uncertain guidelines and have proposed the following changes to anti-money laundering regulations through a recent HM Treasury consultation:
- Removing the 10,000-euro threshold on AML Supervision to remove agent confusion while addressing the unwarranted closure of pooled accounts by the banking sector.
- The provision of more prescriptive and practical guidance around responsibilities.
- Introduction of streamlined mechanisms to conduct due diligence where very few risks are apparent.
