Why Do Agents Fail When it Comes to Anti Money Laundering?

Money Talks..

As a supervisor of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which came into effect on 26 June 2017, HMRC publishes details of businesses, including estate agencies and property firms, that have failed comply with the regulations.

It is outrageous to think that a professional estate agency has failed to comply with the regulations, but worst still that they have failed to even register or renew their registration which is something so small and so basic.

On a day to day basis, agents need to comply with numerous pieces of legislation and registration with HMRC for these purposes seems one of the most simplest to comply with however surprisingly large numbers fail to add a simple diary note to remind them to register and pay up!

One has to question the professional abilities of an agency that can't diarise the renewal of regular policies, insurances and registrations. It makes you question if their cars they are driving have TAX and MOT, or if their office insurances were put in place, maybe their staff aren't covered if there is an accident on the premises, or maybe they forget to pay them monthly too? And as a client of these agencies how can you guarantee they won't forget to call you or to attend a viewing? Will they actually get your property sold for you if they fail on the simplest of tasks?

Registration is so simple and there is an even better tool which agents should all be using which is free of charge and run by one of the most reputable companies; FCS Compliance.

My business colleagues at FCS Compliance have been providing unparallel services to agents since 2016. In fact they have made it so easy for agents never to fall at the first hurdle as they now allow agents to sign up to a FREE reminder service - AML Protect, so they should never forget to renew their HMRC registration.

By signing up to this reminder service, the agent also gets AML support resources, free webinars and newsletters.

So there really is no excuse to be fined for not remembering to renew.

What should also be remembered however is that the longer you forget the bigger the fine becomes. Fines can be eye watering and reach into the thousands so it's a very costly mistake to make.

Non registration is not the only reason for breaches which all carry fines.

AML is just another, but very important, consideration when running an estate agency. The best way to stay off the breach list is:

• Ensure you have conducted a risk assessment of your business

• Put in place your policies and procedures which you and your team must follow

• Undertake regular training to ensure that all involved are up to date with the latest case studies or changes to legislation

• Maintain standard templates and procedures to collect information required under the HMRC Anti Money Laundering Supervision Guidance and make sure everyone takes time to read this guidance note

• Partner with a trusted 3rd party who will be able to assist in tricky situations such as FCS Compliance

AML is risk approached but failing to register or understand your duties is a risk too far!