The guidance has been in effect since 10 January 2020 when the Fifth Money Laundering Directive came into force, extending the requirements to relevant letting agency businesses, but the document had not received HM Treasury approval.
With the UK Government publishing a review of the UK’s Anti-Money Laundering (AML)/Countering the Finance of Terrorism (CFT) regime at the end of June and also publishing two post-implementation reviews to fulfil its statutory obligations; taken together, the three documents make a thorough evaluation of the role of the regulations in the UK’s anti-money laundering regime and set out the next steps to improve their effectiveness, according to the UK Government.
Due to the Proceeds of Crime Act, Propertymark believes it is best practice for all letting agents, regardless of whether they fall under the definition of regulated businesses with HMRC for AML supervision, to carry out Customer Due Diligence on all their customers such as landlord, tenant, guarantor, permitted occupier, and any other relevant parties to the transaction.
Propertymark is encouraging agents to continue to familiarise themselves with the guidance and take appropriate steps to identify and assess the risks of money laundering and terrorist financing to its business could face.
Written Risk Assessment - establish and maintain an up-to-date written risk assessment that is appropriate to the size of the agency.
Written policy on how to manage the risk – property agents must establish, maintain, and review written policies, controls and procedures to mitigate and manage effectively the risks of money laundering and terrorist financing identified in any risk assessment.
Internal controls - appoint a senior manager as Nominated Officer/ Money Laundering Reporting Officer (MLRO) responsible for the agency’s compliance with the rules.
Propertymark has a range of training courses available to all agents and resources available to its members to help ensure adherence to the requirements. For more information visit:
Propertymark training courses:
Timothy Douglas, Head of Policy and Campaigns at Propertymark, comments: “Property agents must continue to take appropriate measures to adequately mitigate the risks of money laundering to their businesses. Without action, the UK property market remains vulnerable to attack. Propertymark has a library of resources and training courses to help our members to do this.
“We know that additional legislative measures will be introduced as part of a second Economic Crime Bill later this year to safeguard and support the UK’s open economy and it’s clear from the review that the UK Government is proposing further work through a second Economic Crime Plan to improve the implementation of the regulatory framework. Alongside action from businesses, effective supervision is key, and we will continue to work with the UK Government to shape future reforms.”
