The average Anti Money Laundering (AML) fine handed to the estate agency sector has gone through the roof and increased by 63.7%, research from Credas Technologies reveals.

But while the average fine issued to estate agents has increased, the sector still ranks with some of the lowest fines issued when compared to other sectors.

Across five industries – Estate Agency, Accountancy Services, Money Services, Trust or Company Services and High Value Dealers – the average AML fine has increased in by 19% in the past year, rising from an average £75,078 in 2020-21 to £89,372 in 2021-22.

This average increase has been driven entirely by the estate agency industry, with the average fine up by 63.7%, from £3,577 to £5,853.

SEVERITY

But despite this the severity of AML fines issued within Estate Agency is the second-lowest of all sectors. With an average fine of £5,853, only Accountancy is lower at £3,547. In contrast, the average fine handed out for Money Service Providers is a whopping £167,457.

However, the average AML fine handed to estate agents is predicted to increase further before the year is out, with Credas Technologies forecasting that it will hit £6,285 in 2022-23, a year in which the sector is estimated to pay a total of £177,570 in fines.

Estate agents deserve praise for getting their AML ducks in a row.”

Tim Barnett, Chief Executive of Credas Technologies, says: “On the face of it, an increase in the average AML fine issued to estate agents may seem like a backwards step.

“But while the average fee may have increased, the total sum handed down in fines and the sheer volume of these fines is expected to fall substantially come the end of the 2022/23 financial year.

“Estate agents deserve praise for the manner and speed in which they have managed to get their AML ducks in a row at a time when the market has still been booming.”