Money laundering fines ‘will be huge’, agents are warned Taken from Property Industry Eye Agents are being warned to be very careful to scrutinise new advice from HMRC on anti-money laundering because fines in future are likely to be huge. The advice, from lawyer Jeremy Bouch of Shoosmiths, follows recent fines on three agents totalling £246,665 for anti-money laundering lapses. The fines, imposed by the previous regulatory body the OFT, were levied on: • Hastings International UK in south London, which was fined £47,966 • Jackson Grundy in Northampton, which was fined £169,652 • Jeffrey Ross of Cardiff, which was fined £29,000 Bouch said: “These fines represent a significant increase from those previously imposed for these types of breaches. Indeed, as recently as January 2013, Leicester-based IPS Estate Agents was fined £11,844 for money laundering failures. “It is expected that the level of fines will continue to increase, even with the transition of regulatory power to the HMRC, as regulator thinking is very much that only large deterrent fines will ensure that commercial organisations take their obligations seriously, which in turn will shore up consumer confidence. “We only have to look to the Financial Conduct Authority (FCA) to see the proliferation of large fines on both companies and key individuals. “It is therefore vital that estate agents take heed of these fines and ensure that they are compliant with the Money Laundering Regulations which make it compulsory for those businesses both to register with HMRC and implement anti-money laundering controls or face action.” He added: “Crucially, enforcement action does not require a business to actually be used by criminals – mere vulnerability is sufficient.” It is understood that all three of the agents hit with the last OFT fines may be appealing. HMRC’s advice – curiously, still headed ‘draft’ – says that letting agents remain exempt from the anti-money laundering regime, and private sales portals that act as passive introducers are also exempt. However, sales agents and property search agents must comply. Those that were previously registered with the OFT have had their registrations automatically passed to HMRC, but new agencies should register with the HMRC without delay. The advice can be found here: hmrc.gov.uk/mlr/estate-ag-bus.pdf Registration details are here: https://gov.uk/registration-guide-for-estate-agency-businesses
Posted on: Wed, 09 Apr 2014 18:16:10 +0000
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