8 things you must do to help you be compliant

You must register with HMRC for Anti-Money Laundering (AML), and renew your registration annually if your business carries out any work defined as estate agent activity. Further guidance from HMRC regarding money laundering supervision for estate agency businesses can be found here.

This is different from being registered for tax, and the majority of fines handed out by HMRC are for not being registered, failing to renew the registration annually, or failing to keep the information in the registration up to date. 

Not registered? Register with HMRC for AML.

Already registered? Set up renewal reminders. Sign up for free to AML Protect.

FCS has a free reminder alert service - 'AML Protect'. This automatically alerts you when it's time to renew your registration; failure to re-register could result in an HMRC fine.

Based on your risk assessment, you must maintain a written prescribed range of policies, controls and procedures on how your business mitigates against the risks identified in the Risk Assessment. 

This needs to be tailored to your business and aligned with the legal and regulatory obligations of the business. HMRC will review this documentation as part of an inspection. 

How confident are you that your Policies, controls and procedures reflect current Government Guidance? FCS can help.  

You must carry out CDD on your customers at the point of establishing a new business relationship or when undertaking a new transaction. 

For sales and rental instructions, the point where you should carry out CDD on your customers is at the point they approach you to sell/let their property. 

You should conduct CDD on buyers/tenants once an offer is made and accepted/the rent is agreed. 

How confident are you and your team when it comes to red flags? Enquire about FCS Compliance's CDD services.  

You must appoint a nominated officer, often called the Money Laundering Reporting Officer (MLRO), to assess and report suspicious activity. Larger or more complex businesses may also need a senior Compliance Officer to oversee wider AML compliance. Sole practitioners fulfil these duties themselves. Notify HMRC of appointments within 14 days. 

Does your MLRO know their duties? Get Specialist MLRO training with FCS.  

Relevant staff and agents must receive regular AML training. HMRC expects training at least annually, and more frequently where risks are higher or when regulations, procedures or roles change.  Training must be relevant to your business and recorded. 

Staff not trained or just need updating? View FCS Compliance's range of AML training. 

If at any point during your transaction, you have a reasonable basis even to suspect money laundering or terrorist financing activities have taken or are taking place, you must report that suspicious activity to the National Crime Agency (NCA) by completing a Suspicious Activity Report (SAR). – Find out more here.    

OFSI: If you have a reasonable basis for suspicion that a party is attempting to or breaching UK Sanctions, you have a mandatory duty to report to the Office of Financial Sanctions. Find out more here.  

Failing to file a SAR to the NCA or to OFSI leads to risks of committing a criminal offence for failing to report.  

Need help knowing when to file a SAR? Or how to file one? FCS is here to help.  

Where appropriate for your business's size and nature, you must independently audit your AML policies, controls and procedures. The audit should test whether they are effective and being followed. It may be conducted internally or externally, but the auditor must be suitably knowledgeable and independent.

Have you got audits fully covered? Enquire about making FCS your independent audit function. 

The range of audit services FCS offers has been designed for your industry, including HMRC Inspection and Mock Inspection support services, File Reviews and more.