Estate agents can now speed up their AML checks - here’s how

01 June 2021 42528 Views

As estate agencies are covered by Money Laundering Regulations, agents are legally obliged to take customer due diligence measures to limit the risk of being used to facilitate the flow of illicit money. One common measure is the so-called AML check. Despite being widely used, AML checks and storing reports take up lots of valuable resources these days. Now there is a way to speed up that CDD process tremendously and get AML compliant in minutes.

AML checks play a vital role in compliance programs

As are registering with the HMRC and keeping staff trained and up-to-date, performing AML checks is an essential part of many compliance programs. After all, identification checks and sanction, PEP and adverse media screening help agents stay aware of high-risk customers and make better risk assessments which in turn are required to stay compliant and avoid violation of the AML laws and regulations.

Consequences of violating AML obligations

Noncompliance with the UK’s AML regulations may have serious consequences for estate agencies and property firms. Depending on the severity of the violations, estate agents who don’t have the correct policies, controls and procedures and/or fail to conduct proper due diligence may have to pay fines of hundreds of thousands of pounds or even risk several years of imprisonment. Not to mention the reputational damage AML compliance breaches will have on their businesses. Therefore AML checks shouldn’t be taken lightly.

Outsourcing can be a costly endeavour

Screening each and every client and preparing reports requires analysis of large amounts of data and significant administrative efforts. Given their importance and the lack of professional skills and time to perform CDD checks, most estate agents choose to outsource their AML checks. Although it saves time, it also increases costs up to ten or even hundreds of £’s per check. Now imagine outsourcing thousands of checks per month.

AML process automation

All-in-one customer due diligence solutions such as CDDCheck.online use smart technologies to automate AML processes, avoiding human errors and adding speed and efficiency to AML checks and reports. With just the click of a button estate agents receive identifications and summaries of their customers’ risk profiles based on the results of scanning a global database with extensive information on:

• Sanctions, banned and wanted lists

• PEP’s (politically exposed persons) and their relations

• Political positions

• Related persons

• Related companies

• Negative Media

• Excluded Directors (GB)

• Other notes

In addition, using CDD software helps firms and agencies easily adapt to changes in regulations or new laws ensuring the highest standards of compliance.

Making record keeping easier

Being compliant also means estate agents have to keep records of all their customer due diligence measures (i.e. customer identification documents, AML check results and risk assessments) for at least 5 years beginning from the date a business relationship ends or the date a transaction is completed. This way agencies can show they complied with AML regulations when one of their clients is investigated and protect their businesses from harmful consequences. CDD software automatically saves all relevant data in one place.

Worry-free AML monitoring

A person’s or organization’s risk profile can change over time. That’s why money laundering regulations also require estate agents to regularly see whether a person’s name shows up on, for example, Sanction and PEP lists. This ongoing monitoring shows relevant changes that occurred in a customers’ status enabling estate agencies to take immediate action such as Enhanced Due Diligence to stay compliant and protect their businesses. CDDCheck automatically tracks all activities and alerts estate agents immediately when a change occurs allowing for worry-free AML monitoring.

Speed up your AML checks now

With CDDCheck estate agents only have to get proof of identity, proof of funds and click a few buttons to perform their AML checks and stay compliant. Now let’s ditch those old-fashioned procedures and start automating your AML processes to save time and costs.

Visit CDDcheck.online for more information or a demo or feel free to get in touch with info@cddcheck.online.