Propertymark beefs up compliance team and cracks down on non-compliance of money-laundering regulations
Propertymark has opened compliance cases against a small number of members following the latest HMRC publication of businesses who have failed to comply with anti-money-laundering regulations.
The list of businesses who failed to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 during the period 1 January 2022 to 31 March 2022, showed 66 agents had been issued penalties, five of which are Propertymark members.
Across the whole list of 66 property businesses, the nature of the published breaches includes failing to apply for registration at the required time; failures in carrying out risk assessments, having correct policies, controls and procedures in place; conducting due diligence and record keeping; and failures in the provision of registration information.
Ongoing work to support members in reviewing compliance with legislation is a key area for Propertymark’s team of Compliance Auditors. This involves regular reminders about responsibility and liability, updates on HMRC and Trading Standards enforcement and penalties, and information on data protection.
Propertymark says that it knows that compliance can be a minefield for both lettings and sales agents and legislation is constantly changing so its visits from its compliance team have proven to be invaluable to its members. Propertymark undertakes visits in person and is currently undergoing development to get their team members out and about more frequently to review and support the procedures agents have in place. This provides an opportunity for agents to get feedback on how they comply, have open discussions about how best to implement any new regulations, guidance and best practice, and ensure they are up to speed with what can seem like a constantly evolving industry.
Propertymark’s goal is to achieve visits to each of its member firms at least once within a five-year rolling period and unlike HMRC or Trading Standards, the regulatory body gives a minimum of 10 working days’ notice before a visit.
Legislative compliance is key to the industry body’s membership with many members referencing this as their reason to join. Members are directed to check the criteria for anti-money-laundering registration on joining Propertymark.
Propertymark encourages members to fully engage with them and the compliance review process in order to maximise the benefits. Ultimately, Propertymark is here to help and support your agency, continue to raise standards and preserve the long-term health and prosperity of the profession.
Members can contact Propertymark’s compliance department by emailing [email protected]
Education and training
All estate agents and certain letting agency businesses must be registered with HMRC for anti-money-laundering. As the supervisor for estate and letting agency businesses, HMRC publishes details of businesses that do not comply with the regulations. The Fifth Money-Laundering Directive expanded the scope of obliged entities within the property sector to include the lettings agents managing properties charging a monthly rent of EUR 10,000 or more.
Agents and auctioneers must put in place procedures to detect suspicious activity and prevent money-laundering to reduce the risk that criminals may target and exploit property agencies for financial crime. Having a Money-Laundering Reporting Officer (MLRO) is a key part of that process. It is also essential that everyone who works within the business knows who the MLRO is and can name them easily if called by HMRC.
Propertymark training and guidance are also available which outline responsibilities, risk assessments, internal controls, and how to establish, maintain and review written policies.
https://www.propertymark.co.uk/membership/knowledge-hub/aml-training.html
https://www.propertymark.co.uk/resource/anti-money-laundering-high-on-uk-government-agenda.html
Propertymark reminds all agents falling within scope, of the importance of being registered with HMRC, and of implementing processes and training to ensure that staff throughout your business understand their responsibilities and support your compliance.
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