Propertymark is urging all agents to keep up to date with the most recent anti-money laundering guidance so that they don’t fall foul of the rules.

Due to the Proceeds of Crime Act, Propertymark say it is best practice for all letting agents, regardless of whether they fall under the definition of regulated businesses with HMRC for AML supervision, to carry out customer due diligence on all their customers such as landlord, tenant, guarantor, permitted occupier, and any other relevant parties to the transaction.

ALL LETTING AGENTS

A spokeperson for Propertymark told The Neg: “As for the AML guidance, it remains applicable to what it was previously, that is properties rented for £10,000 per month.

“However, we believe it is best practice for all letting agents, regardless of whether they fall under the definition of regulated businesses with HMRC for AML supervision, to carry out customer due diligence on all their customers such as landlord, tenant, guarantor, permitted occupier, and any other relevant parties to the transaction.”

In July the Government published updated guidance which is designed to help property agents comply with the Money Laundering Regulations 2017 and covers customer due diligence, record keeping and reporting suspicious activity.

Without action the UK property market remains vulnerable to attack.”

The guidance has been in effect since 10 January 2020 when the Fifth Money Laundering Directive came into force, extending the requirements to relevant letting agency businesses, but the document had not received HM Treasury approval.

Timothy Douglas, Head of Policy and Campaigns at Propertymark, adds: “Without action the UK property market remains vulnerable to attack.”