Estate & Letting Agency Business

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) outline the requirements for Estate Agency and Letting Agency businesses to prevent their services from being misused for illicit financial activities. Under the regulations, businesses must appoint an MLRO, develop anti-money laundering policies and procedures, conduct customer due diligence, provide staff training, and carry out risk assessments. Estate agents are required to verify the identities of both buyers and sellers while letting agents are at higher risk due to handling client funds. Non-compliance with the MLR 2017 can result in civil penalties or criminal prosecution. 

Estate Agency businesses play a crucial role in property transactions and must be vigilant for suspicious activities. Letting Agency businesses are more likely to handle funds, posing a heightened risk of money laundering or terrorist financing. These regulations also extend to the subsidiaries and branches of Estate Agents outside the UK. Overall, adherence to the MLR 2017 is vital to safeguarding against illicit financial activities and maintaining compliance in the real estate sector. 

Key Requirements as per MLR 2017: 

• Business Relationships. 
• Internal Controls – Appointment of MLRO. 
• Anti-Money Laundering Policy, Data Protection Policy & other related policies & procedures. 
• Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) and Enhanced Customer Due Diligence for Politically Exposed Persons (PEP). 
• Suspicious Transactions. 
• Risk Assessments – Firm Wide Risk Assessment. 
• AML Training. 
• External Consultants.