CDD & AML solution for estate agents and property companies.
AML compliance in the property sector has undergone and continues to endure significant changes with the introduction of the 5th AML and the imminent introduction of the 6th AML. With a CDD & AML solution for estate agents you’re always up-to-date and compliant.
Real estate & AML
All AML compliance laws in Europe and the UK specifically instruct estate agents who assist clients in buying or selling property in the UK or overseas to register with the HMRC and comply with current AML regulations. The property sector is gradually coming to terms with its compliance obligations which include using an electronic system to screen all transactions for PEPs, sanctions and adverse media wherever possible.
However, despite being prime targets for money launderers an estimated 50% of estate agents in the UK are still to register with HMRC putting them at risk of being refused a license to trade upon detection.
It only takes one HMRC check to expose any estate agent that has not registered or that has failed to undergo full CDD to ruin a reputation, find themselves on an HMRC website and lose their license.
A major factor for estate agents to fully comply is cost and of course time. Especially during pandemic times. With a ground breaking, easy to use platform and a fully transparent price structure CDDCheck allows both individual agents and leading estate agencies to meet their AML obligations effortlessly and fast.
Frequently Asked Questions
If your business is supervised by HMRC for anti-money laundering purposes, you will need to meet the approval requirements covered under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. These requirements make sure that the businesses’ beneficial owners and senior management are the right people to take on those roles. Leading personnel must pass the relevant approval checks before your business can register (and remain registered) with HMRC. HMRC confirms the requirements do not test if your business is professionally run or operated. Registration is a legal requirement to trade, it is not a recommendation or endorsement of the business.
Short for designated non-financial businesses and professions, DNFB is the acronym used to describe the additional occupations and industries which are legally obliged to comply with AML regulations but don’t fit into the financial sector. As such estate agencies fit into this bracket. They are a prime target for money laundering and are a major reason over £90 billion is estimated to flow illegally through the UK financial system each year.
As seen above all estate agents are required to register with the HMRC and are obliged to follow regulations for AML regulations. The buying and selling of property is a prime opportunity for financial crime, and the cash flow involved in these transactions is often exploited as a means of “washing” illegally obtained funds.