Anti-Money Laundering: Senior Manager Responsibilities.

This is the second in a series of articles on mitigating money laundering risk in property transactions. Today’s article is about the role and responsibility of senior managers in the property market.

Who falls under the scope of HMRC regulation?

Estate agents and businesses carrying out estate agency work must register with HMRC. Further, HMRC notes that for any estate agency business “senior managers are personally liable if they don’t do everything they need to do to protect their business from money laundering and terrorist financing.”

As far as HMRC is concerned, senior managers include:

Directors, Managers, Secretaries, Chief Executives, Partners in Partnership or Sole Proprietorships, and/or members of a management committee carrying out similar work.

HMRC holds managers personally liable if a crime is committed because of neglect. Penalties can include unlimited fines and a prison term of up to two years.

How can you mitigate this risk?

Let’s get started with what a manager at an estate agent needs to be doing. In sum, manager responsibilities range from establishing good money laundering practices to carrying these practices forward on an ongoing basis.

Minimum requirements include:

  • Carrying out a risk assessment of your business;
  • Preparing a policy statement;
  • Developing systems and procedures to show how the business will manage the risks of money laundering and terrorist financing;
  • Training enough staff and implement systems to deal with money laundering; and
  • Monitoring effectiveness and make improvements when required.

The first element is management-focused and making sure that you have responsibilities decided, policies in place, and staff trained. The second is implementation through systems that work.

For lower risk estate agents on a high street in a smaller town, the likely risks revolve around fraud and tax evasion. For estate agents in metropolitan regions, there may be a need for better client diligence as clientele may be more international and/or represent a higher net worth.

In my next article, I will delve deeper into assessing business risk. However, if you have any questions in the meantime, please feel free to visit our website.

This article does not constitute legal advice and should not be construed as such. Thanks to Christine Matthews for the image.

Alex Evans

You May Also Enjoy

Breaking News

Rise in no fault evictions

No fault evictions have risen according to the latest data published by the Ministry of Justice. Property disputes lawyer says “some landlords are unwilling to wait for the new Renters’ Rights legislation and are choosing to leave the market” Landlords can apply for an accelerated possession order if the tenants have not left by the…
Read More
Love or Hate Rightmove
Breaking News

Rightmove Weekly Mortgage Rates – 14/02/25

Rightmove’s mortgage expert Matt Smith says: “It’s another week of average rate drops, and the response from the market since the Bank Rate cut has been positive. We hope to now see a sustained period of mortgage rates trickling downwards to lead us through the Spring selling season.” On the first sub-4% mortgage rate Matt says: “The…
Read More
Adding second coat of varnish floor boards
Home and Living

The Benefits of Wooden Flooring: Why It’s a Classic Choice for Any Home

Wooden flooring is often regarded as a timeless and classic choice for homeowners looking to add elegance, warmth, and durability to their living spaces. Whether you’re renovating your home or building from scratch, the decision to install wooden floors is an investment that enhances both the beauty and functionality of your space. In this article,…
Read More
Rightmove logo
Breaking News

Could you fall in love with a home without seeing it? 1 in 5 Brits think they could

As the new season of Love Is Blind hits Netflix this Valentine’s Day, it seems that some Brits are taking the concept of love, (sight unseen) to a whole new level, when it comes to finding their dream home. New research from Rightmove, the UK’s largest property website, reveals that one in five Brits admit…
Read More
Home and Living

Securing Solar Investments: How to Protect Your Solar Panels and Ensure ROI

Investing in solar energy is a smart move for both your wallet and the planet, but protecting that investment is just as important as making it. Solar panels face risks from theft, vandalism, weather damage, and neglect, all of which can chip away at your returns. To ensure your system operates efficiently and generates the…
Read More
Breaking News

Almost one in five property sales now experience ‘gazundering’

Almost a fifth of property sales now experience gazundering, according to figures from property firm Quick Move Now. Gazundering, which is the attempted renegotiating of a lower property purchase price after a sale has been agreed, has become more common in recent years as the market contends with cautious buyers and difficult economic conditions. According…
Read More