WARNING: ‘Half of agents don’t take AML compliance seriously’
Writing for The Neg, Simon Luke says a culture of following the rules can guarantee that agents have the necessary systems to conform to AML.
Money laundering through real estate remains a significant concern, particularly in the UK where £1.5 billion worth of property has been bought by Russians accused of corruption or links to the Kremlin.
As supervisory bodies continue to crackdown on poor anti-money laundering (AML) practice in the property sector, it is vital for estate agents to create a culture of compliance.
FINED
Our recent findings indicate that almost half of property professionals are not improving their anti-money laundering processes because they either don’t care or don’t think they will get fined.
With the property sector a key target for money launderers this is a concerning trend. It’s time that estate agents and other real estate companies embrace comprehensive solutions to effectively combat money laundering.
The first step is to focus on technology. Over the past three years around 48% of property professionals have witnessed suspected money laundering but have lacked the resources or drive to address it effectively. Technology-based AML processes can offer several advantages to companies and the customers they screen.
BENEFITS
These benefits include slashing admin time, removing the need for extensive communication between employees and customers and establishing a centralised database of AML data that is ready for regulatory and supervisory review.
In turn, estate agents can concentrate on value-adding tasks like selling properties instead of spending time on administrative tasks, such as collecting documents to fulfil their AML requirements.
This approach will not only motivate industry experts but also offer them a platform to recognise and highlight fraudulent behaviour with ease.
COMPLIANCE
However, merely relying on technology is not enough. Estate agents must establish a culture of compliance to develop an effective and streamlined AML programme.
Compliance with anti-money laundering and financial conduct rules should not be a mere obligation imposed on businesses; it should be a commitment for the betterment of society.
Ultimately, a strong culture of compliance can guarantee that property professionals not only have the necessary systems and controls to conform to AML regulations but that they also have ethical and moral reasons to do so.
Simon Luke is UK Country Manager at First AML.
