The Office of Fair Trading (OFT) has warned that estate agents assisting with buying or selling overseas property now subject to Anti-Money Laundering regulations.
Changes to the Anti-Money Laundering (AML) Regulations mean that UK-based estate agents who assist clients to buy or sell overseas property must comply with the regulations from 1 October 2012 and register as soon as possible. Those that fail to do so may be subject to a fine or face prosecution.
The Money Laundering Regulations 2007 came into force on 15 December 2007. The Regulations implement the Third Anti-Money Laundering Directive. The aim of the Regulations is to reduce the risk of supervised businesses being used for money laundering or terrorist financing. Businesses have to apply measures such as verifying customer identity, training staff and reporting suspicious activity to the Serious Organised Crime Agency.
The OFT has also welcomed the decision of the First-Tier Tribunal to dismiss Sussex-based estate agent, Mansell McTaggart Limited’s appeal against a £3,000 fine imposed by the OFT for carrying on estate agency work while unregistered. The Tribunal found that the penalty imposed in this case was appropriate. Mansell McTaggart Limited is now registered with the OFT under the AML Regulations.
To date around 7,000 estate agents and 6,000 consumer credit lenders have registered with the OFT under AML regulations.
David Fisher, OFT Director of Anti Money Laundering, said: “The changes to the Regulations will help to deter, detect and disrupt financial crime by reducing businesses’ vulnerability to being used for money laundering or the financing of terrorism.
“It is important that businesses comply with the Regulations and register with the OFT. As shown by our action against Mansell McTaggart Limited, where they do not, we will impose penalties.”