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Anti-Money Laundering for Estate and Letting Agents

AML Checks for Estate Agents

Anti-money laundering (AML) measures are crucial for estate agents to maintain the integrity of financial transactions and comply with UK legal standards. Given the high value of property transactions, the property industry is a prime target for criminals looking to launder illicit funds.

Estate agents play a pivotal role in identifying and preventing these activities by implementing robust AML practices involving conducting thorough due diligence on clients, verifying identities, understanding the source of funds, and monitoring transactions for suspicious activity.

Estate agents must stay informed about the latest AML laws and best practices, ensuring your procedures are up-to-date and effective in order to protect your business and be able to demonstrate this in the event of an HMRC audit.

AML Obligations for Estate Agents: Legal Requirements and Penalties

Estate agents are legally required to perform Anti-Money Laundering (AML) checks. These obligations stem from the need to prevent the property industry from being exploited by criminals to launder illicit funds. Compliance with AML regulations is not only a legal duty but also crucial for maintaining the integrity and reputation of your business. Failure to conduct these checks can result in severe penalties, including fines and reputational damage especially in preparation for any potential HMRC audit. 

Estate agents perform several AML checks to ensure the legitimacy of their transactions and comply with regulatory requirements. This could mean verifying the identity of clients through official documents, understanding the source of funds being used for the property purchase, close monitoring of transactions, seeking information about the client’s business activities, maintaining records of all AML checks and reporting any suspicious activity to the relevant authorities. 

 

Anti-Money Laundering Checklist for Estate Agents

1. Undertake a risk assessment to identify where the business is vulnerable to money laundering activities and to review this assessment on an annual basis – YOUR FREE DOWNLOAD.
 

2. To have processes and controls in place to fully meet the requirements of the legislation and to be able to demonstrate the effectiveness of these controls.
 

3. To have in place an appropriate AML Policy, available to all staff and reviewed on an annual basis.
 

4. Ensure all our employees have appropriate training and understanding of the regulations and the role they play. This includes training for all new starters as part of their induction before they become customer facing and a refresher for all staff on an annual basis.
 

5. To provide updates to all staff regarding any changes in legislation.
 

6. To advise the Directors if additional Money Laundering Officers are required to support the business.
 

7. To review and respond to all internal suspicious activity reports and queries and to make the final decision regarding any ongoing reporting to the National Crime Agency.
 

8. Have a process in place to complete due diligence checks on sellers and buyers and to carry out ongoing monitoring.
 

9. Have processes to identify when a seller, buyer or beneficial owner is a Politically Exposed Person.
 

10. To complete additional checks on the wealth of the transaction on all PEP cases and continue to monitor through the property transaction.
 

11. Manage situations where a person you are entering into a business relationship with, will not provide approved ID documents and consider whether a report should be submitted to the NCA.
 

12. To register the business with the National Crime Agency as and when appropriate.
 

13. To respond to any queries from employees regarding completion of verification checks.
 

14. To maintain confidential records of all suspicious activity reports.
 

15. Approve all ‘high risk’ clients and monitor the transaction until the business relationship comes to an end.
 

16. To ensure a ‘defence’ is sought, if required when submitting a report to the NCA and support the branch in managing the transaction.
 

17. Maintain records of all activity.
 

18. To establish a process and test effectiveness on controls on a regular basis, but as a minimum twice per year, and to formally discharge the duties of nominated officers.
 

19. To have a process to ensure all AML documentation is confidentially destroyed at the end of the 5-year retention period.

How to tackle money laundering issues as a Guild Member?

Here are a few of the ways The Guild helps its' Members to remain compliant: 

Regular training and updates

Every Wednesday, all Guild Members receive a video update from our Group Compliance Officer, Paul Offley. From loft insulation to WhatsApp and data protection for your business, Paul's videos offer answers to the queries he receives from across the network as well as addressing policy changes as and when they happen. 

Compliance Toolbox 

Paul also looks after our Compliance Toolbox which sits within our Members' Hub. It is a library of documents and information on subjects from lettings legislation to anti-money laundering, giving Members a central point for frequently asked questions and key reference documents. 

Professional Indemnity (PI) Insurance

All Members are eligible to join The Guild’s Group Policy pending satisfactory ‘statement of fact’ responses and acceptance by our insurers.

The Guild's Associate Scheme 

The Guild's Associate Scheme is a training course that is free to all Guild Members, ensuring every Member and their teams have access to the fundamental knowledge and understanding required to be an estate agent. 
 
On completion, Members can access a certificate in recognition of their achievement, as well as an ID card which can be worn on appointments. 

How much does it Cost for Estate Agents?

Everything above is included in all of our Guild Plans. Find out more about how much you could save on compliance related costs when you become a Guild Member by clicking here

Other Products and Services available for Guild Members

As well as compliance support, The Guild provides a range of tools, products, and services to help you grow your business, stand out amongst the local competition and increase your market share.

We hand select the best agents across the UK inviting them to be the exclusive Guild Member in their area, check if yours is available today.

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