AML procedures are crucial for agents - Blog

AML procedures are crucial for agents

AML procedures are crucial for agents

Compliance Update Paul Offley, The Guild's Compliance Officer 24th May 2022

A recent article stated that almost a third of property professionals believed that their own Anti-Money Laundering (AML) compliance procedures would not stand up to the scrutiny of HMRC, should they come under investigation. According to Paul Offley, Compliance Officer at The Guild of Property Professionals, what is remarkable about that statistic is the large number of agents who are putting their businesses at risk, especially considering the massive fines HMRC have issued in the past for breaches. 


“We have seen financially crippling fines issued within the industry by HMRC to agents for AML breaches, and not having robust procedures in place is putting both an agent’s livelihood and reputation at risk,” says Offley. 


The sad reality is that the UK property market is targeted by organised crime syndicates as a means of laundering their money, which is why the sector need to remain vigilant and ensure that the correct procedures are in place to assist in eradicating the practice of money laundering through the housing market, and to protect agents and their business from being linked to criminal activity. 


“While many agents may believe that a visit from HMRC will never happen to them, if it does, not being able to demonstrate the correct AML procedures will have dire consequences for the business. It shouldn’t be a risk that an agency is willing to take. It is crucial that an agency is prepared and stays up to date with the latest changes to the regulations to ensure they remain compliant. A business should ensure that their AML policies are reviewed on a regular basis to confirm that they meet the latest requirements,” he says. 


According to Offley, agents will need to keep a record of the fact that they have gone through the correct procedures and performed the appropriate checks. “Making use of a digital platform such as movebutler from iamproperty will help agents to show the evidence required as part of their compliance with AML procedures. Apart from identifying any potential PEP or financial sanctions positions, these procedures also include identifying the legal owner of a property, a complete risk assessment on all sellers and buyers, appropriate and timely identification checks, and that the agent has kept accurate records. That is one part of the AML process, there is then the need to refer any ‘high’ risk case to your money laundering officer and continue with ongoing monitoring throughout the transaction. It is important that agents can show they have performed their due diligence and taken the necessary steps, which a digital platform can assist with by providing an essential audit trail,” he comments. 


“Providing compliance support to our networks has always been an important part of our membership services and we are always looking at ways to enhance that support and how we can use advancements in technology to achieve this. Things change so quickly, and we must keep up to speed on using technology as this has many benefits,” says Offley. “We have been so impressed with the feedback received from Guild Members using the movebutler platform, we will be expanding our partnership with them and extending the offering to the Fine & Country network within the UK.” 


Ben Ridgway, iamproperty’s Group Managing Director, says: “Our movebutler platform provides a comprehensive automated solution for compliance and completion of customer due diligence, in a way that is efficient for both the agent and the consumer, and helps identify and prevent criminal activity by using the latest digital technology available.”


Offley adds that in additional to the compliance platforms offered by The Guild, the network also offers its Members a review which focuses entirely on the agency’s AML procedure, with the sole objective of ensuring that the business is fully compliant with the Money Laundering Regulations.  “If required, the review includes a rewrite of the agent’s Money Laundering Policy to ensure that they fall in line with the current regulations. It also includes briefing all office staff to ensure they understand and are following the correct procedures, as well as a check on all systems to ensure they are up to standard. The processes and controls are tested thoroughly to ensure they are effective and meet the required criteria,” Offley comments.  


“All property professionals should familiarise themselves with the procedures and requirements as much as they can, as well as implementing processes or technology which will make AML compliance easier.  Money Laundering Officers need to be able to demonstrate that they can perform their duties and making AML procedures a priority will ensure business are not hit with a hefty fine from HMRC,” he concludes. 


Paul Offley, The Guild's Compliance Officer

Paul Offley joined The Guild in 2017 as our in-house Compliance Officer, to help Members stay on top of legislation. Paul’s career has maintained a focus in estate agency for over 40 years, building a specialist knowledge in the compliance function. Paul helps Members to reduce the probability of any risk materialising by working alongside agents to identify areas where the business is at a high risk of exposure. Guild Members have compliance tools at their disposal and are regularly presented with updated information on the latest legislation requirements. Paul is also on hand to speak to agents individually, delivering quality and high standards to all our Members. Paul has been providing continual support to The Guild Members throughout COVID-19, from legislation and Government updates, to providing indispensable and personalised advice through Facebook Live. He is passionate about raising standards, and is part of The Property Ombudsman Industry Forum.

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