Money Laundering

Money Laundering

As of 15 December 2007 the Money Laundering Regulations came into force across the UK. The purpose of the Regulations is to detect, deter and disrupt financial crime and terrorist financing by reducing the possibility of legitimate businesses being used for money laundering.

These Regulations require certain types of business to register with the Anti-Laundering Register. Currently this affects those Relocation Companies, partnerships or sole traders who assist individuals (private clients or company employees) to purchase property. This is because property finding is classified as ‘Estate Agency Work’ under the 1979 Estate Agents Act.

It is very likely that all Relocation organisations will have to register when the Regulations are extended to cover Letting Agents and any professionals providing assistance to individuals or corporate employees in the rental of property.

HMRC has updated its Estate Agency Business guidance to:

  • Clarify when to identify and verify property buyers – to be completed before a binding contract is entered into
  • Align with the Financial Conduct Authority guidance on politically exposed persons
  • Align with the Joint Money Laundering Steering Group on simplified due diligence

https://www.gov.uk/government/publications/money-laundering-regulations-2007-supervision-of-estate-agency-businesses

HMRC will continue to review content in response to feedback received from the sector.

To get instant updates about changes to the HMRC anti money laundering supervision pages on GOV.UK you can select the Subscribe to email alerts link onhttps://www.gov.uk/topic/business-tax/money-laundering-regulations.

For further information from the HMRC website please click here 

For the full Guidelines on Money Laundering, prepared in conjunction with the NFOPP, RICS and ARMA click here