The Government has released a new consultation on the Fourth Money Laundering Directive.
The UK is obliged to ensure adherence to EU directives until exit negotiations are concluded.
The proposals are of specific interest to estate agents and letting agents (page 31 of the document which can be found below).
Proposals include making the membership bodies supervise their members for anti-money laundering purposes, with HMRC continuing to supervise agents that do not belong to a recognized body.
For the first time, letting agents would also have anti-money laundering responsibilities. The consultation is seeking views on whether letting agents should carry out checks on both landlords and tenants, and if so at what stage.
The consultation also addresses the very thorny issue of sub-agents, saying that where there is a sub-agent acting on behalf of a principal estate agent, a sub-agent cannot rely on the due diligence performed by the main agent.
However, the consultation introduces the thought that subject to certain provisos, the sub-agent might be able to rely on it.
This is a lengthy, but important document
Comments (5)
Intermediaries and reliance
7.15 In transactions where there is a sub-agent (intermediary) acting on behalf of a principal estate agent
** interesting section. As the consultation mentions poss passing over the clients personal intel. Ouch, as this could make agents breach data protection
*** the consultation also asks for comments on 7.16 – sub agents: when there isn’t a 7.16
Responses to HM Treasury by Nov
Wow!! 84 pages!!!
Presumably, presumably, the Government expects tenants to pay a fee for increased agent checks into whether tenants are laundering money.
how very dare you….. dont you realise that letting agents are expected to this and other checks before a property is let for Free even if the tenant changes their mind, fails or lies on the referencing or makes multiple applications to reduce the rent at the last second.
Letting Agents are then new public enemy number 1.