Money Laundering in the Property Industry

Long gone are the days of slapping down on the table a wod of cash and expecting the estate agent to count it then hand you over the keys when purchasing a property. Who, what, where, when and why is most certainly the questions you will need to ask today and rightly so.

Though it has of recent years been progressively highlighted, with much attention focused towards it, the UK property industry still holds great potential for those looking to launder money. The main reason being is that most property transactions will involve larger amounts of money and in most cases there are no restrictions on who can purchase and from where.

So what exactly does money laundering mean – Money laundering is a process which criminals use to make it look like the money they have is legitimately earned. What they’re doing is taking ‘dirty money’ – and effectively ‘cleaning’ it (source equifax).

Firstly let us understand exactly what anti-money laundering means – also known as per its abbreviation, AML, the phrase is there to cover all aspects of the law, the formal processes and regulations that are there to prevent the illegal gain of income. AML is a big issue on a global scale that helps to supply criminals and even terrorists with ill gained monies.

Both sellers and buyers always need to be vetted and there are many warning signs, not only cash-only buyers, which can present themselves to you:

  • Payments from multiple (sources) people / businesses / locations / bank accounts
  • Payments from someone outside of purchaser and their immediate family
  • Payments from unknown third parties to include nominee businesses
  • Payments from one party yet the property will go in another party’s name
  • Unusual sale price such as undervaluing or over pricing
  • Gut Feeling – Sometimes our intuition can tell us if something just does not seem right

Within estate agency we can relax and know that nearly all purchases / sales take place genuinely though it is also important to know that we are all responsible to reduce money laundering crime and it is our duty to vet each and every transaction we put through. Not only should estate agents request full evidence / identity from parties within a transaction, they also need to communicate the reason why as many, both innocent or suspect, might challenge such vigorous checks ie it’s my house and it’s just your job to sell it and not ask questions!

Make sure you’re confident that your client is who they say they are. You may want to ask your client further questions if:

  • their attitude is unusual – for example they’re disinterested, secretive or vague
  • they’re eager to undertake a quick transaction
  • they request key changes mid-way through a transaction (source lawsociety)

As an estate / letting agent you should take it upon yourself to be up to date with the current regulations and expectations of you, what identity you should be requesting, what checks are needed and what you need to do if you suspect that money laundering is taking place. Be aware that be it cash or money within a high street bank, there is no reason for it not to be fraudulent / laundered, be alert and suspect the unsuspected!

 

Further official reading can be made on the UK government website: The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

 

 

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Home and Living

High Quality Modular Homes for the UK

Are you looking for added accommodation space in your garden / on your land? Modular Living Homes by tutumHOUSE offer a new way to live – minimalist in form, rich in experience. “There are approximately 9.6 million homes in the UK with a garden shed, and around 52% of the population owns one.” asgardsss There…
Read More
Estate Agent Talk

The most stressful places to move to in the UK

With more people in the UK moving homes during summer than any other season and the average cost of moving in the UK rising to over £14,000, picking the right place to move to has become more crucial than ever. Luckily, new research from Pay Less for Storage reveals the UK cities that make life easiest…
Read More
Estate Agent Talk

Time-Traveling Estate Agent Sequel Climbs Amazon Charts

A UK Estate Agent Currently Bringing Joy to People’s Lives – Shame He’s Fictional…   Eric Meek, the fictional estate agent created by author Dale Bradford, is back for a second outing in The Time‑Travelling Estate Agent 2, a sequel that is already climbing Amazon’s bestselling time‑travel rankings. Estate agents were recently highlighted as the third…
Read More
Estate Agent Talk

Is it finally time for lenders to back green homes?

Andrew Smith weighs the risks and rewards Property developers are increasingly pitching green homes to lenders; however, with sales cycles slowing down and repair costs rising, is now the right time to back sustainable builds and at what price point is there market demand? Sustainability is continuing to shape our future of construction with the…
Read More
Breaking News

Breaking Property News 24/07/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   OpticWise – digital infrastructure in commercial real estate If your building were a product, how would it perform on the user experience scale?  Week 9: Experience as Infrastructure – Designing for Human-Centric Buildings Welcome to Week 9 of our 52-week journey into the future…
Read More
new build homes colchester essex
Breaking News

UK Housebuilding Falters as Construction Hiring Flatlines

New research from Inventory Base reveals that UK construction industry employment has increased by almost 11% in the past five years, but there has been less than 1% growth in the past 12 months. Inventory Base’s analysis of the UK construction industry shows that in 2024 (latest data available) it employed an estimated total of…
Read More