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AML Self Assessment Checklist
1 × £28.00
AML Checks for Estate Agents
03
Nov
Nov
This quick guide looks at what the AML checks for estate agents are and what other rules you need to be aware of and comply with.
What is an Estate Agent?
Estate agent activities are defined under the Estate Agents Act 1979 (‘the Act’). Such activities are where instructions are received from another person who wishes to dispose of (sell) or acquire (buy) an interest in land. You also have obligations under the Act if you introduce your customer to a third party who wants to buy or sell an interest in land. These activities also include lettings.
HMRC are currently the supervisory authority for estate agents with responsibilities under the Money Laundering Regulations (MLR). They have a dedicated page on their website which lists exactly which estate agency activities are regulated and the types of businesses who must register with HMRC.
HMRC Approval Checks
Estate agents are one of the businesses who require approval checks from HMRC in relation to money laundering registration.The checks are a variant on the ‘fit and proper’ test and ensure a business and its managers, officers and any beneficial owners are suitable for the roles assigned. When registering with HMRC for AML supervision, all such persons must be approved before HMRC will register your business.
AML Checklist for Estate Agents
You are probably here because you want to know what checks are required by estate agents when it comes to money alundering prevention. It’s a double ended question because you may want to know what checks HMRC will carry out on you or what checks you should carry out on your own business to ensure AML compliance.
HMRC and the MLR state that you are required to have ‘AML policies and controls in place to comply with the Regulations’. When you read through these, you will find that policies, procedures and checklists for preventing money laundering go hand in hand with due diligence measures.
You can use the below list as a start for AML checks across your estate agency business. These are the minimum standards required but the list is not exhaustive.
- Client onboarding questionnaires for due diligence.
- Client risk assessments for enhanced due diligence checks.
- AML policy stating your obligations and objectives for complying with the MLR.
- AML procedures in areas such as transaction monitoring, risk assessments, conflicts of interest, anti-bribery & corruption, audits and monitoring and management information.
- Business-wide risk assessment to identify money laundering risks and ways to reduce and mitigate them.
- AML training for senior managers and employees inline with the MLR requirements.
- Procedures for suspicious activity reporting and submission.
- MLRO reports and management information (where applicable)
- Appointing a nominated officer for money laundering prevention oversight.