In April 2024, HMRC revealed that property agents who breached anti-money laundering regulations were collectively fined over £1.6 million. Propertymark, the leading professional body for property agents, is urging its members to ensure they are properly registered with HMRC and compliant with current regulations.
Criminal offence for unregistered agents
Since January 2020, it has been a criminal offence for property agents to operate without being registered with HMRC for anti-money laundering supervision. This requirement extends to letting agents who manage properties with monthly rents of €10,000 or more. Agents found in breach of these regulations risk severe penalties, including potential imprisonment for up to two years or unlimited fines.
Despite the stringent requirements, many agents remain unaware of their obligations. Nathan Emerson, CEO of Propertymark, emphasised, “With many agents still unaware that they need to register with HMRC for anti-money laundering supervision, it is vital that they do so in order to not only comply with the law and avoid hefty fines and prosecution but continue to provide consumers with confidence and trust in the marketplace.”
Essential compliance support
Propertymark is committed to supporting its members through a range of resources designed to aid compliance with anti-money laundering laws. These resources include training sessions specifically aimed at helping agents understand and adhere to the regulations. Furthermore, Propertymark offers a unique service, Calm About Compliance, which provides one-on-one audit support to help agencies navigate complex government rules, avoid costly penalties, and safeguard against uncertainty.
According to Propertymark’s research, a significant 96 per cent of respondents expressed a desire for more detailed guidance on meeting their compliance obligations. To address this, Propertymark continues to enhance its offerings to ensure that its members can remain compliant and confident in their operations.
A call to action for property agents
The recent fines serve as a stark reminder of the importance of compliance with anti-money laundering regulations. Property agents across the UK are encouraged to review their registration status with HMRC and take advantage of the support available from Propertymark. By doing so, they can not only avoid legal repercussions but also maintain the trust of their clients and uphold the integrity of the property market.
As the landscape of property regulation continues to evolve, the role of professional bodies like Propertymark in providing guidance and support has never been more crucial. The consequences of non-compliance are severe, but with the right support, property agents can navigate these challenges effectively.
