Agents are widely failing to have mandatory annual audits of their anti-money laundering procedures, it has been claimed.
Rhys David, CEO of identity verification business Credas, said: “The audit is an aspect of compliance that often goes under the radar, despite the fourth AML Directive being in place for two years.
“Failing to carry out these important checks can easily result in an investigation and subsequent fine from HMRC, so it’s vital that property agents cover themselves against any unnecessary risk.”
The fifth AML Directive is coming into force in January and David said that the need for an audit will continue to be significant.
He said that all agents should reassess their procedures between now and then.
Comments (1)
It isn’t that difficult to comply but it’s very easy to ignore the law and thereby get into serious bother.
I once had an estate agent tell me they didn’t need to undertake AML checks as they didn’t hold client money.
Don’t rely upon anyone else’s checks. Undertake your own-on all interested parties. So look at and check photo id, utility bill and bank statements. Keep copies. Keep for a few years (don’t forget Data Protection Act 2018[GDPR])