Any takeover of Purplebricks could be jeopardised by a looming fine for breach of anti-money laundering (AML) regulations, according to reports.

Potential suitors for the troubled agency, which was put up for sale recently, might be put off by a penalty imposed by the Financial Conduct Authority, This is Money website suggests.

As the amount of any fine is unknown, buyers may consider it unwise to invest in a business that is losing money anyway, it says.

The ‘City Whispers’ column on This is Money, which is part of the Daily Mail, describes the possibility of a heavy punishment as “a hurdle” for any investor.

Flout rules

Purplebricks was given a fine of nearly £267,000 by HMRC in 2020 for breaches of money laundering rules.

The agency’s director of compliance Helen Martin quit suddenly in February after just five months, without any explanation.

She rejoined LSL Property Services as a ‘risk consultant’, where she was previously risk and governance director for the company’s estate agency division.

Estate agencies which flout AML rules are usually fined by HMRC, under the Money Laundering Regulations 2017, with the amount set according to the size of the agency and how serious the breach is. Criminal prosecutions are possible under the rules, but are rarely  used.

A spokesman for Purplebricks was unable to comment other than to point out that “in early 2023 we announced a partnership with Lifetime Legal for all customer due diligence”.