The government introduced the Fifth EU Money Laundering Directive into UK law just before Christmas - and it has a significant implication for agents.
It was introduced as part of The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 and comes into force in two weeks time in January 10 2020.
This is an amendment to existing regulation but has several new amendments.
One such change says that wherever possible businesses must use electronic verification for their anti-money laundering checks rather than just looking at paper-based documents such as passports and driving licenses.
According to one PropTech supplier in this niche, this means the estate agency sector will need to implement these changes immediately while letting agents will also be affected, when letting out a property where the rent is €10,000 per month or more.
Other sectors to now fall under the regulations include financial advisers, art dealers and crypto-currency exchange platforms.
Failure to comply with the regulations can result in prosecution and heavy financial penalties.
Martin Cheek, managing director of SmartSearch says: “The Fifth Money Laundering Regulations coming into law may well catch a number of people by surprise ... It comes into effect on the 10th January, so companies will not have long to prepare.
“It is the need for electronic verification that is likely to take most people by surprise. Any estate agency or letting agents who do not already have a trusted means of doing this will need to implement this immediately to ensure they are compliant and save themselves from a heavy fine.
“The regulations are designed to help tackle rising levels of fraud and eliminate money laundering, things that are likely to be a key priority for everyone this year.”
Just because Halloween has officially been and gone for another year,...
This is our last edition of Estate Agent Today until Friday...
Zoopla is launching a new eight week marketing campaign on Boxing...
Today, with the festive break around the corner, we have another...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
In today's rapidly evolving property market, the focus on reducing transaction...
.png)
An exciting new collaboration between TVPN, EstateApps and Paul Long is...
By Mike Bilboe, Face For Business Buying or selling a home can...
LSL Estate Agency Franchising is home to one of the UK’s...
.jpg){kind=logo}
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
.jpg)
Tell us a little bit about National Home Move. We are a...
If you’re thinking about becoming an Estate Agency franchise or converting...
Estate agents and lettings agents have a legal obligation to protect...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
A client account is essential to your lettings business, but the...
As electric vehicles increasingly populate our roads and the necessity for...
As estate agents, it is important to make sure that your...
Estate agency has changed. No longer is it required to sit in...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
It’s no secret – 2023 is a difficult year for the...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
.png)
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
So, in theory at least, the agent could use exactly the same electronic verification provider as the property lawyer, on the same people and the same documents? A waste of time and money?
... and our mortgage broker will also use the same one - 3 separate AMLs for one transaction. Dic%^eads rule....
I'm not sure this is right...I have read (skimmed over) the new regs and can see nothing to say that there is a "need for electronic verification". Is this the Proptech industry manipulating agents and scaring them into doing something they don't need to do. Martin Cheek is extremely vague about what is required and does not even mention the paragraph to which he refers.
It says that electronic ID verification can now be considered as a reliable source, ie: they are satisfied that prop tech companies have beta tested it sufficiently if agents choose to use a firm that offers that. "..electronic identification processes, regulated, recognised, approved or accepted at national level by the national competent authority may be taken into account"
It is not mandatory, so yes more smoke and mirrors.
Please login to comment