AML warning as hundreds of agents hit with HMRC fines

HMRC doing what they do best, raising revenue.

Basically, on top of collecting and paying taxes to the Gov't, it also wants Estate Agents to police money laundering.

Not reluctance. As a sales only agency we just didn’t know we were supposed to register. As soon as we found out (which only came about as we were changing banks and the new bank asked us to register) we did so. 12 months later we were hit with a £27,000 fine. We employ external bookkeeper, separate accountants and a quality solicitor to incorporate the companies and no one told us. We were never advised by HMRC that we had to register. I know ignorance is no excuse but it seems very much like a stealth compulsory registration was introduced and then we were fined when we did so if a little late!! AND when we ask for a review it’s just another HMRC employee who reviews it. Can’t get a day in court, no external ombudsman to complain to. Pay up or we send the bailiffs rounds. Feels like a communist state!

I don't understand why estate agents have to register and undergo AML checks when solicitors already do the same. It feels like a redundant process solely for generating revenue. It almost resembles a cartel, especially with external parties like Propertymark attempting to influence the estate agency industry to capture a share of agents' fees.

• Shaun Adams
• 12 April 2024 11:03 AM

there are plans to make sharing aml between agents, sols and brokers, transparent and secure with blockchain Coadjute

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Apparently 24,500 estate agents in the UK. 200 fined for not being up to date. All admin can be a burden but I was delighted to see some known scrotes fined in my patch.

One only has to go onto Youtube, put ‘HSBC money laundering documentary’ into search and your eyes will be opened about corruption within the banking system.

There are countries where it is the responsibility of mortgage brokers and the banks to complete the AML when a mortgage is involve. Buyers usually have their mortgage approved before they put an offer on a property.

If the transaction is a cash purchase then it becomes the estate agents and legal representatives problem to complete the AML process.

Would life be made easier if we had the same

One only has to go onto Youtube, put ‘HSBC money laundering documentary’ into search and your eyes will be opened about corruption.

There are countries where it is the responsibility of mortgage brokers and the banks to complete the AML when a mortgage is involve. Buyers usually have their mortgage approved before they put an offer on a property.

If the transaction is a cash purchase then it becomes the estate agents and legal representatives problem to complete the AML process.

Would life be made easier if we had the same

As an estate agent, I am utterly dismayed by the burdensome regulations imposed by HMRC's anti-money laundering legislation. It's absurd that we're expected to comply and pay hefty registration fees when the real perpetrators of money laundering operate with impunity right under HMRC's nose.

Let's talk about the elephant in the room: the Vietnamese-operated nail bars, candy shops, barbers, and fast-food outlets that are shamelessly laundering proceeds of crime. It's an open secret, yet HMRC seems content to turn a blind eye to these flagrant violations. This isn't about tax avoidance; it's about the proceeds of serious criminal activity slipping through the cracks while estate agents are unjustly targeted.

Vietnamese people trafficking gangs are running rampant, laundering money on an industrial scale, and yet estate agents are portrayed as the soft target. It's high time HMRC redirected its focus where it's truly needed and stopped burdening law-abiding professionals with unnecessary red tape. It's not just unfair; it's an egregious failure of duty on the part of HMRC.

Are letting agents more susceptible to risks like money laundering since they handle financial transactions, unlike estate agents? And do anti-money laundering (AML) regulations apply to property portals, private sellers, and landlords who essentially perform similar functions to agents?

I understand that estate agents should be vigilant, but why doesn't the government set up an AML platform where buyers and sellers can upload the relevant documents to satisfy compliance, rather than having to do this separately with the agent, solicitor, and bank/mortgage broker? The platform can then generate a code or certificate that can be use by the relevant business. Instead we are appointed as gatekeepers, but have to pay for the privilege, and face finds if we as much as blink. Absolute shambles!

I understand that estate agents should be vigilant, but why doesn't the government set up an AML platform where buyers and sellers can upload the relevant documents to satisfy compliance, rather than having to do this separately with the agent, solicitor, and bank/mortgage broker? The platform can then generate a code or certificate that can be use by the relevant business. Instead we are appointed as gatekeepers, but have to pay for the privilege, and face finds if we as much as blink. Absolute shambles!