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More than 250 estate agents have been fined a total of more than £1.6 million for breaching anti-money laundering requirements (HM Revenue and Customs)HMRC) announced. Fines range from £1,500 to more than £50,000.
HMRC will publish a follow-up list in the coming weeks of where estate agents have been fined for breaking the law. This includes the lack of company-wide documentation, incomplete or inaccurate customer due diligence (CDD) within the required time frame, the value of assets, high-risk jurisdictions, identification of politically exposed persons (PEPs), etc. including a lack of awareness of the risks. Corporations, Trusts and Sanctions.
Malcolm Driscoll, Principal AML Consultant at FCS Compliance, said: “Registering with HMRC is one of the most basic requirements of the Money Laundering Regulations (MLR). However, too many businesses are either ignorant or simply believe that the regulations do not apply to them. , failing to fulfill this simple duty.
“While we accept legal obligations to drive on the road, such as a driver’s license, insurance and passing a test, we accept AML obligations to facilitate real estate transactions where large sums of money are transferred between parties. Some people are reluctant to accept that this is necessary.”
HMRC’s follow-up list of further penalties will be drawn up on the basis of that inspection, with many of the inspections expected to be carried out on-site.
Mr. Driscoll added, “For a company to be compliant, it must have an accurate AML policy and procedure manual and an AML risk assessment that reflect the company’s business activities, its awareness of the law, its compliance with the law, and the specific risks it faces. is necessary,” he added. In addition, staff must undergo regular training to fully understand and carry out their obligations to complete the CDD. These are the things that HMRC look for when carrying out ‘unannounced’ and ‘surprise’ inspections.
“All staff are at risk and it is up to them to reduce that risk or accept the possibility of facing significant fines from HMRC.”