Agents warned over failure to register for AML properly
HMRC says some agents see their AML applications rejected for not having risk assessment measures in place.
Many estate agents are being warned they could face big AML fines after failing to register properly with HMRC.
The tax agency says it has seen a rise in new applications for anti-money laundering supervision which do not have the required risk management procedures in place.
Propertymark is reminding agents that to register with HMRC for AML supervision they must have documented risk assessment policies, controls and procedures. Staff must also be trained to understand and implement these policies.
Rejected
If these requirements aren’t met within 21 days of applying, it leads to a rejected application.
HMRC is now contacting all businesses that don’t have the necessary processes in place.
Criminal offence
It is a criminal offence to provide estate agency services or rent out property valued at 10,000 euros (or equivalent amount) or more per month, without being registered with HMRC for AML supervision.
The possible penalties are a fine up to £5,000, or a prison sentence of up to two years and an unlimited fine, or both.
Fines
The Neg reported Mark Jones from leading law firm Payne Hicks Beach saying there had been little improvement if any in the way agencies approach money laundering regulation.
Fines totalling more than £1.2 million were handed out to agencies by HMRC, figures showed.
The penalties were imposed during just six months between July and December last year, HMRC revealed.
Estate agents account for the largest number of fines issued by HMRC since the introduction of AML supervision, accounting for nearly half (45.4%), according to figures released in January.
