A quarter of estate agency branches in the UK have failed to register with HMRC for money laundering supervision, new analysis from the property and legal fintech Thirdfort shows.

The study found that just 16,730 UK branches out of 22,270 across the country have registered with HMRC, the anti-money laundering supervisor for the sector. Some 5,540 branches, or 25%, have yet to register.

Some will find the findings surprising given the potential risks, with money laundering costing the UK more than £100bn annually.

A joint report from HM Treasury and the Home Office in 2020 assessed the risk of money laundering in the estate agency market as medium, up from low.

The report noted weaknesses in anti-money laundering and counter-terrorist financing controls, limiting the mitigations against the risk of money laundering in the sector.

Common failings included a ‘lack of bespoke policies, controls and procedures aligned with an appropriate risk assessment of each firm’s clients.’.

Olly Thornton-Berry, co-founder and managing director of Thirdfort, said: “Money laundering is a serious and growing risk in the property sector and HMRC is hot on the heels of those agents that fall foul of their regulatory obligations.

“The failure to tackle money laundering has significant implications. Not only does it support criminal activity, but it leaves agents open to reputational damage, fines and even bans.

“Thirdfort exists to protect life’s big transactions, allowing both agents and buyers to move without risk. Our platform meets the criteria set out in HMRC’s guidance for money laundering supervision, so by using our Thirdfort agents can negotiate in confidence, secure in the knowledge they are fully compliant.”