Anti-Money Laundering (AML) policies for Estate Agents

HM Revenue and Customs (HMRC) has noticed an increase in businesses applying for anti-money laundering supervision that are often missing a key step – they’re not setting up the necessary AML risk management procedures. This is a must to comply with AML regulations.

Read on to get a better understanding of your obligations as an agency owner and two free downloads for example policy documents and risk assessments.

What you need to know

When you apply for AML supervision with HMRC, you need to have a clear Risk Assessment, along with Policies, Controls, and Procedures (RA/PCP) written down. If you don’t have these ready within 21 days of your application, it’ll likely be turned down.

HMRC is now getting in touch with businesses that are missing these essential processes, offering guidance to complete their applications without any more hold-ups.

Getting your AML procedures in order

If you’re a property agent needing AML supervision, it’s crucial to have procedures to prevent money laundering. This involves creating a thorough written policy on how you’ll manage risks and detailed steps to prevent money laundering. It’s also important to train your staff on these policies.

You’ll also need to do an AML risk assessment that covers your clients, your business, and its operations. The UK Government has some handy advice on preventing money laundering and terrorist financing.

What happens if you don’t comply?

Not being registered with HMRC for AML supervision when you should be is a serious offence. It can lead to hefty fines or even prison time.

Penalties include:

• A fine of up to £5,000.
• A prison sentence of up to two years and/or an unlimited fine.

Help with your AML compliance

At Kotini, we help estate agents reduce the time they spend on onboarding properties to sell, and a big part of that is helping their clients complete their identification and anti-money laundering checks digitally. We can’t be in charge of your AML risk management procedures, but here are some templates to give you a place to start with creating yours: