Fines for these breaches have totalled over £500,000
HMRC has announced 68 estate agents have been fined for not complying with anti-money laundering regulations.
The announcement on the 11th of October revealed that 68 estate agents were issued fines for being in breach of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Fines for these breaches in this period have totalled £519,645.
This is an increase on the amount earlier this year which showed 41 estate agents were found to be in breach in May 2022.
These rules were implemented in order stop criminals laundering money from illegal activity.
Of the 66 agents punished, their offences ranged from failing to apply for registration on time and conducting proper due diligence, to the more severe offences such as failing to have correct policies, controls, procedures in place and failing to carry out risk assessments.
Estate agency Propertymark were found to be one of the most serious offenders with five of their agents found to be within breach.
Propertymark have opened compliance cases against a number of their members in response to these fines.
These measures, Propertymark state, will remind their agents of their responsibilities to conform with HMRC and Trading Standards enforcement and penalties, and of the importance of being registered with HMRC.
The news comes after the government announced stricter penalties on firms who breached these regulations.
Nick Sharp, HMRC’s Deputy Director of Economic Crime, said:
“We are determined to create a level playing field for businesses who play by the rules. That means taking action against the minority of businesses who fail to fulfil their legal responsibilities under the money laundering regulations.
Money laundering is not a victimless crime. Our regulations are there to protect businesses from those criminals who would prey on their services to wash their dirty money.
Serious and organised crime costs the UK billions of pounds every year and our anti-money laundering supervision is a vital tool in combatting that.”
Businesses failing to register with HMRC whilst trading could lead to prison sentences up to two years and an unlimited fine.
