8 things you must do to help you be compliant

All estate agents, and lettings agents with rents over 10,000 euros, complete (and annually renew) your Anti-Money Laundering (AML) registration with HMRC.

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 up -to-date the information in the registration. 

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 who will deal with your AML compliance. They are known as a Money Laundering Reporting Officer (MLRO). If you are self-employed, then you are automatically the MLRO for your business. 

The MLRO bears the responsibility of ensuring a business is fully AML compliant and can be personally liable should serious violations occur. 

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

It is a legal requirement that all staff must be trained at least every two years on their AML obligations. However, with the regularity that the risk profiles and Government guidance are changing, it is advisable to refresh training annually so that employees don't do something that accidentally puts your business at financial and reputational risk.  New employees, and those who change roles present particular risks to businesses. 

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.  

An independent audit function is a requirement of Regulation 21 of the Money Laundering Regulations (MLRs) and must be done with regularity. – Find out more here. 

Whilst the regulations state that the audits can be done 'in-house', it cannot be done by anyone involved in compliance for the business. This person must, however, have a deep understanding of the MLRs, which often creates a requirement for external support.  

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

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