New anti-money laundering guidelines for estate agents suggest that terrorist criminals may pay large deposits which they re-claim later, pay prices for properties just below Stamp Duty thresholds, bribe staff, or attempt to rush transactions through.

Estate agents should also beware of buyers who have not viewed the property, but only seen it on the internet.

HMRC’s new guidelines also say that agents should also ask to see clients’ tax advice on certain occasions – for example, if it looks as though they are trying to avoid Inheritance Tax.

Another area of concern is “acceptance of disproportionate corporate hospitality”.

The new guidelines are published after HMRC took over responsibility for anti-money laundering regulations from the OFT in April this year.

In virtually its last act, the OFT hit three agents with enormous fines, alleging anti-money laundering breaches.

Hastings International, in London, was fined £47,966; Jackson Grundy in Northampton, was fined £169,652; and Jeffrey Ross, of Cardiff, was hit with £29,000.

Lawyers have warned agents that future fines are likely to be in line with these, and that agents could be found to be in breach where there has been no anti-money laundering activity at all – only where a possible risk has been identified.

The new guidelines, which have been in draft until now, do not explicitly acknowledge that it is letting agents, rather than sales agents, that handle money.

However, they do say that under the Proceeds of Crime Act, it is a failure to report suspicious activity and this obligation extends across the whole business – “so an estate agency business which also does lettings must also submit suspicious activity reports for its lettings”.

The guidelines also say that landlords who do not comply with their legal obligations, and tenants who attempt to sell properties they are renting, are potential concerns for agents.

The guidance underlines that estate agents – although not letting agents – must register with HMRC.

Failure to do so could result in unlimited fines or prison.

However, the guidelines admit that for most estate agents, money laundering is hardly an every day risk.

In curious language and employing a strange use of capital letters, it says: “It’s unlikely that a high street  Estate Agency Business in a small market town will come across customers involved in terrorist financing.

“A business in a metropolitan area with an international clientele presents a completely different risk profile.”

All agents are told they should have written policy statements, making clear how they will prevent money laundering and terrorist financing. This includes having a nominated member of staff who should report any suspicions.

The guidelines are here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/321830/MLR2007.pdf