Fines and prison for lettings agents who flout new law
A new sanctions regime starting May 14 will impose stricter anti-money laundering obligations on letting agents. Agents will be classified as ‘Relevant Firms’ under the Sanctions and Anti-Money Laundering Act 2018, requiring them to ensure neither landlords nor tenants appear on government sanctions lists. They must also report breaches to the Office for Financial Sanctions Implementation (OFSI). Non-compliance could lead to fines of up to £1 million or up to seven years in prison.
The Guild of Property Professionals highlights key compliance areas:
- HMRC Registration: Mandatory AML supervision with annual renewal.
- Governance Documents: Reviewed annually.
- Customer Due Diligence: Risk assessments, ID verification, and financial sanction checks.
- Record Keeping: Proper maintenance of CDD records and transactions.
- Suspicious Activity Reporting (SARs): Reporting suspected money laundering/terrorism financing to the NCA.
- Financial Sanctions: New procedures for checks and reporting breaches from May 14.
Recent HMRC fines emphasize the importance of adherence to these regulations to avoid severe penalties.
