Hundreds of agents at risk over AML rules as 144 firms are sanctioned by HMRC

Between October and December 2023, 144 letting agents were sanctioned by HMRC, the latest published data reveals.

The vast majority of the fines issued were for failing to register at the right time, with fines ranging from £1,250 to £52,000. However, larger fines were issued in response to AML failures.

The largest fine was £175,701 – issued for multiple failures in carrying out risk assessments, having the correct policies, control and procedures and keeping records properly.

Propertymark said: “It is vital that agents correctly apply for and maintain an up-to-date registration with HMRC, and whilst we actively advocate for more precise guidelines and understand the complexities of the current process, it’s crucial that agents understand the severity of the consequences of failure to register.

“The penalties for non-compliance are significant and can have a lasting impact. Agents could face a prison of up to two years or an unlimited fine.”

The trade body advises agents to consider taking the following steps:

+ Develop a written, up-to-date risk assessment of the location operating in, customers and the value of transactions undertaking;

+ A written policy statement and procedures to show how the business will manage the risks of money laundering;

+ Train and support staff to understand and implement these policies;

+ Ensure procedures and audit processes are applied to all branches in or outside the UK;

+ Appoint a nominated officer (Money Laundering Reporting Officer – MLRO) to report suspicious activity to the National Crime Agency (NCA) and a Deputy Money Laundering Reporting Officer;

+ Ensure suitable control measures are in place.

You can see HMRC guidance for letting agents here.

 

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