Anti-Money Laundering Regulations HMRC
www.morganhowles.co.uk
What are the Regulatory Requirements Placed Upon Estate Agents?
All estate agents in the UK are required to comply with a number of laws designed to prevent illicit funds passing through the UK. These include the Proceeds of Crime Act 2002, the Criminal Finances Act 2017, the Terrorism Act 2006 and the Money Laundering Regulations 2017.
Property transactions are seen by the UK Government and crime agencies as posing a particularly significant money laundering threat. As such, the Money Laundering Regulations 2017 require estate agents to understand and verify exactly who their customers are and have evidence that they have completed KYC checks. Should an estate agent become suspicious of a prospective client or existing client’s activities, it must report this to National Crime Agency.
We take our anti-money laundering responsibilities very seriously and believe that the laws governing the UK property industry are critical tools in the fight against organised crime and terrorist financing. If we did not complete KYC checks we would undermine our corporate responsibilities and also place ourselves and you at risk of prosecution.
What information will we request and what checks will we need to do?
Parties representing themselves Where you are representing yourself and:
Wish to sell a property that you directly or jointly own;
Are considering buying a property from one of our selling clients;
Are seeking advice from us on a particular purchase;
We will ask you to provide us with documentation confirming your identity and your primary residential address.
Where you wish to sell your property we will complete Land Registry checks to verify that you are the legal owner of that interest and have the right to do so.
Where you wish to buy a property from one of our clients, or where you want us to advise you on a particular purchase, we will also need information clarifying the origin of the funds being used to complete the transaction.
If you are currently not a resident in the UK we may require further information from you.
Clients using Corporate Vehicles and Trust structures, Not for Profit Organisations and Investment Funds
The extent of information and checks undertaken on corporates, trusts, not for profit organisations and investment funds depends on the perceived money laundering risks associated with a given structure, jurisdictions used, or nature of business activity underpinning the entity.
For all cases, irrespective of the structure used, you will be required to provide documentation to enable us to evidence the identity of the individuals who ultimately benefit, or will benefit, from owning the asset.
How will we use your information?
Your information will be used for the sole purpose of completing our KYC checks in order to meet our legal obligations.
Your information will be held confidentially and will not be shared with any third parties outside of Morgan Howles & Parry Ltd unless we are required to in order to comply with a regulator or law enforcement authorities.
In the event of an inspection/investigation by the regulator or law enforcement authorities your information will only be shared if requested and to the extent we are obliged to provide it.
Should you wish for us to provide the information that we hold about you to another third party acting on your behalf, or on the other side of a transaction, we would be pleased to do so following a written request.
Who regulates estate agents for the purposes of the money laundering regulations 2017?
For the purposes of the Money Laundering Regulations 2017, estate agents are regulated by HM Revenue & Customs.
Links for more information
www.gov.uk/topic/business-tax/money-laundering- regulations
www.gov.uk/government/consultations/money-laundering-regulations-2017
www.nationalcrimeagency.gov.uk/crime-threats/money-laundering
