A poll conducted by Rightmove has found a “frightening” number of estate agents are unaware of their anti-money laundering (AML) reporting obligations.
The poll asked: “if you suspect money laundering through a property transaction, who should you make a Suspicious Activity Report to?”
The answers available to respondents were HM Revenue and Customs (HMRC), the local police, National Crime Agency (NCA) and Office of Financial Sanctions Implementation (OFSI).
Worryingly, just 35% of respondents selected the correct answer, the NCA. 47% selected HMRC and 13% chose the local police.
One commenter, Michael Day, said the lack of knowledge was “frightening”, though it must be noted that it is impossible to know exactly who was responding to the LinkedIn poll. Speaking to Estate Agent Today, Day said:
“It is worrying that most respondents thought a report should go to HMRC though. It is just HMRC you register with and who can audit you but that is not where reports should go.
The number of estate agent reports to the NCA are nowhere near what you would expect.”
This comes as research revealed in March that the estate agency industry’s compliance with the regulations is the second worst of all sectors within the UK.
Tim Barnett is chief executive of Credas Technologies, the company behind the research. He warned that, with the clampdown on Russian “dirty money” within the UK property market, it is possible that HMRC will be looking to ensure AML compliance within the estate agency sector:
“With a clampdown on dirty Russian money in full effect, there’s a very good chance that HMRC will increase its AML activity within the estate agency sector and those who may have facilitated any aspect of illegal activity could be in for a rough ride.”
