Unannounced HMRC AML Visits Crack Down On Non-Compliant Estate Agents

Unannounced HMRC AML Visits Crack Down On Non-Compliant Estate Agents

HM Revenue and Customs (HMRC) officers have continued the fight against money laundering in the UK by visiting over 50 agencies suspected of trading without officially registering with HMRC; a clear breach under anti-money laundering (AML) regulations.

Amongst the largest businesses in breach of AML regulations was Countrywide who have amassed fines in excess of 215,000 and online agency, Tepilo, who were fined £68,595 following the unannounced visits.

The recent visits were the first of their kind launched by HMRC with any firm in breach of regulations expected to receive fines, publication and possibly criminal proceedings.

Whilst the firms have not been specifically named, over 35 of the unannounced visits had taken place in London.

Simon York, Director of HMRC’s Fraud Investigation Service, said: “Estate agents need to understand that criminals prey on weaknesses, so it’s vital they take all steps to protect themselves. The money laundering regulations are key to that, but there’s still a minority of agents who ignore their legal obligations. These inspections are a wake-up call that if you continue to trade illegally we will come knocking.”

John Glen, Economic Secretary to the Treasury, says in a statement, commented: “The vast majority of estate agents play by the rules and help us to crack down on dirty money. But I have zero tolerance for firms prepared to turn a blind eye to the law. Money laundering regulation exists to help protect honest business, so anyone who flaunts the law should know that swift action will be taken.”

Ben Wallace, Minister for National Security and Economic Crime, said: “Criminals who seek to use this country as a place to launder money should be in no doubt that they have nowhere to hide. Estate agents are a crucial line of defence against them and that’s why they’re under a legal – and moral – obligation to file a report when they spot something amiss.

“It’s wrong to think of money laundering as a victimless crime. Those with dirty cash to clean don’t just sit on it – they reinvest it in serious organised crime, from drug importation to child sexual exploitation, human trafficking and even terrorism.”

Is your law firm compliant with Anti-Money Laundering regulations concerning Source of Funds? Should the Government offer more guidance to business in relation of AML expectations?

Martin Parrin

Martin is a Senior Content Writer for Today’s Conveyancer, Today’s Wills and Probate, Today’s Legal Cyber Risk and Today's Family Lawyer Having qualified as a teacher, Martin previously worked as a Secondary English Teacher that responsible for Head of Communications. After recently returning to the North West from Guernsey in the Channel Islands, Martin has left teaching to start a career in writing and pursue his lifelong passion with the written word.

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