Estate agents still entrenched in outdated practices when it comes to anti-money laundering are putting themselves on the road to financial ruin, compliance experts SmartSearch has warned.

The firm has urged agents of all sizes to be vigilant and cautions that complacency on compliance is a dangerous path that wastes both time and money.

CRIMINALS

Estate agents need to be on the lookout for criminals’ intent on disguising the proceeds of illegal activities as legitimate funds. They will often use a variety of tactics to launder money, such as structuring transactions to avoid detection, using shell companies and trusts and creating false identities

Martin Cheek (main picture), SmartSearch Managing Director, says: “Remaining entrenched in outdated practices is a costly mistake for estate agents and property firms. It is a waste of valuable resources and fails to address the evolving landscape of financial crime.

“With the Government recently renewing its focus on preventing fraud and given the eye-watering fines and reputational damage which come with money-laundering breaches, investing in AML and digital compliance is becoming more of a cost-saving than a cost for firms.”

MULTIPLE APPLICATIONS

Cheek says credit bureaus can detect money laundering if they see multiple applications for credit using the same personal information but with different addresses or employers. And they can also flag unusual patterns of credit use, such as large, unexplained cash advances or a sudden influx of new credit accounts.

Cheek adds: “Firms can now become more efficient with ‘triple-bureau’ checks through leading credit reference partners – Experian, Equifax, and TransUnion. With this comprehensive approach, we have been able to deliver a 97% match-and-pass-rate to the market.”