Propertymark has opened compliance cases against a small number of members following the latest HMRC publication of businesses who have failed to comply with anti-money laundering regulations.

The list of businesses who failed to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 during the period 1 January 2022 to 31 March 2022, showed 66 agents had been issued penalties, five of which are Propertymark members.

Across the whole list of 66 property businesses, the nature of the published breaches includes failing to apply for registration at the required time; failures in carrying out risk assessments, having correct policies, controls and procedures in place; conducting due diligence and record keeping; and failures in the provision of registration information.

Propertymark says that ongoing work to support members in reviewing compliance with legislation is a key area for its team of compliance auditors. This involves regular reminders about responsibility and liability, updates on HMRC and Trading Standards enforcement and penalties, and information on data protection.

Propertymark says that it knows that compliance can be a minefield for both lettings and sales agents and legislation is constantly changing so its visits from its compliance team have proven to be invaluable to its members. Propertymark undertakes visits in person and is currently undergoing development to get their team members out and about more frequently to review and support the procedures agents have in place. This provides an opportunity for agents to get feedback on how they comply, have open discussions about how best to implement any new regulations, guidance and best practice, and ensure they are up to speed with what can seem like a constantly evolving industry.

Propertymark’s goal is to achieve visits to each of its member firms at least once within a five-year rolling period and unlike HMRC or Trading Standards, the regulatory body gives a minimum of 10 working days’ notice before a visit.

Legislative compliance is key to the industry body’s membership with many members referencing this as their reason to join. Members are directed to check the criteria for anti-money laundering registration on joining Propertymark.

Propertymark says that it encourages members to fully engage with them and the compliance review process in order to maximise the benefits. Ultimately, Propertymark is here to help and support your agency, continue to raise standards and preserve the long-term health and prosperity of the profession.

HMRC fines estate agents more than £500,000 for AML breaches