Compliance red tape set to cost agents tens of thousands a year
Summary
The article says updated HMRC anti-money laundering guidance and changes to the Money Laundering Regulations are likely to impose significant operational and staffing costs on estate agency branches. It argues that compliance now requires a dedicated function, with risks of criminal penalties where firms fail to maintain and implement proper risk assessments, controls and procedures.
Why it matters
Residential property surveyors working alongside agency and transaction teams need to understand the heightened AML expectations because they affect due diligence, record-keeping and escalation processes across property transactions. The article also highlights the growing compliance burden on smaller firms, which may influence how transactions are handled and documented.
Key points
- Updated HMRC guidance requires a risk-based AML approach with written business-specific risk assessments and PCPs.
- Coadjutor estimates an average branch may need a full-time compliance officer at around £45,000 a year.
- Non-compliance can lead to criminal investigation, unlimited fines and possible imprisonment.
- The guidance emphasises ongoing monitoring, customer due diligence, source of funds checks and staff training.
- Independent and mid-sized agencies may struggle most because AML duties are no longer easily absorbed into day-to-day roles.
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