There are going to be significant upcoming change to the UK’s Anti-Money Laundering (AML) enforcement regime and its direct implications for estate agents and property professionals.

The Key Regulatory Shift

The government is moving to a single professional services supervisor, with the Financial Conduct Authority (FCA) set to become the regulator for AML across the legal, accountancy, and trust and company service providers.

• Increased Scrutiny: Martin Carey, co-founder of the property-focussed AML platform PCVdigital, states that this consolidation and focus will place the property sector under increased scrutiny.
• Government Seriousness: The expert warns that rising fines and this regulatory overhaul mean that “HMRC and the Government have never been more serious” about tackling financial crime.
• FCA’s Aim: Steve Smart of the FCA confirmed that these changes are intended to “simplify the supervision of professional services, ensure more consistent oversight, and help us identify and disrupt crime.” The new regime will also create enhanced opportunities for collaboration with law enforcement.

Action Points for Property Professionals

Property professionals are urged to review their processes to ensure they can successfully avoid being used for fraudulent or money-laundering purposes:

• Consistency: Particular attention is needed on the consistency of the AML process across the business.
• Digital Tools: Agencies should look ahead and consider how they can use digital tools in a more integrated way to strengthen adherence to policies.
• Risk Mitigation: Every property professional should keep in mind that robust AML measures are in their best interest to prevent the business from unintentionally becoming a party to fraud.