New research shows estate agents are paying out far more than previously in AML fines.

The total amount paid by agents in anti-money laundering penalties has increased by nearly 1000%, according to figures released by proptech firm Credas Technologies.

Fines totalling £772,618 were issued to agents for AML breaches in 2021-22, up 980% on the previous year.

Property is one of two sectors, with accountancy, to see an increase while the fines overall have fallen 19%.

But it isn’t all bad news for agents, with the statistics also showing that fines in the last two years have dropped compared to the previous two before the Covid pandemic.

In the two years prior to the pandemic, the sector paid a total of £8.2 million, but in the last two years, this has decreased to just over £4m.

Sizeable proportion

The only industry to have seen the total sum of fines increase during the pandemic is accountancy, up by 483%.

Credas found that estate agency leads the way when it comes to new AML registrations, and the sector accounts for a sizable proportion of all AML registered businesses.

As a result, a higher level of fines issued is only to be expected given the sector’s greater acceptance of AML compliance.

Agents failed to tighten their money laundering checks on new customers despite the sanctions imposed on Russia after the invasion of Ukraine, research published in June showed.

Up to 70% of agents had not changed their approach to AML requirements for new customers, according to software firm SmartSearch.