The fees that estate agents will pay for Anti-Money Laundering (AML) supervision have changed today (10 January).
The government has passed laws meaning that estate agents must now comply with the upgraded Anti Money Laundering (AML) legislation, which was introduced by amending the Money Laundering Regulations 2017 and the Proceeds of Crime Act 2002.
Agents no longer need to pay an application charge to HMRC when applying to register their premises for AML supervision. The premises registration fee has been raised to £300 for each of the premises registered.
Agents will still also need to pay a ‘fit and proper test’ fee, and an approval process fee for each person tested.
Estate agents are also now required by law to register for AML supervision and renew the registration annually. This requirement also includes letting agents which rent out property valued at 10,000 euros or more for a minimum of one calendar month.
David Cox, ARLA Propertymark chief executive, said: “The new regulations introduced, create a level playing field in the sales and auctions market and we welcome this. The regulations have also been expanded to include the letting agency sector for high-value transactions with a monthly rent of 10,000 euros.
“Those letting agents who fall within the scope of regulated businesses and manage tenancies that meet the threshold will need to register for anti-money laundering (AML) supervision.”
He added: “Despite the HMRC’s online register not being operational until May 2020, letting agents will need to comply with the regulations from 10 January 2020 and if they’re found to be non-compliant with the regulation’s agents may face civil penalties or criminal prosecution.
“However, irrespective of whether agents fall under the definition of regulated businesses with HMRC for AML supervision, Propertymark recommends it’s best practice that all letting agents carry out Customer Due Diligence (CDD) on all their customers.”