Estate agents are in the frontline defence against money laundering, with property transactions still a prime target for criminals, the Government has warned.

The sector is also earmarked for money laundering due to the value and complexity of property deals, according to the Treasury’s latest National Risk Assessment (NRA) on Money Laundering and Terrorist Financing.

Crucial information

The NRA says: “The money laundering risk for EABs (Estate Agency Businesses) remains medium rated, but has slightly risen since 2020, particularly in regard to the vulnerabilities the sector is exposed to.

“Many EABs do not handle client money, however, their relationships with both the buyers and sellers of properties can provide crucial information to identify suspicious transactions.”

Failure to act comes with serious consequences for agents, with fines, reputational damage, and even personal liability under the Proceeds of Crime Act, AML (Anti-Money Laundering) service provider Smart Compliance says.

Agents fined

In June, HMRC announced it had fined 194 estate agents more than £1 million for AML breaches in a major swoop on the property sector.

Estate agents made up more than half of the businesses fined (336), which were facing financial penalties totalling £3.2 million.

Estate agents are under more pressure than ever to be that first line of defence.”

Amy Shields, Commercial Director at Smart Compliance, says: “Criminals will always look for the path of least resistance. The 2025 NRA makes it clear that estate agents are under more pressure than ever to be that first line of defence.

“But compliance doesn’t need to be a headache, with the right support, agents can focus on selling while staying protected.”

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