The UK property market has consistently been used by criminals to launder the proceeds of their crime. The sheer size of the market, especially in the capital, means that significant sums of money can be ‘cleaned’ in one single transaction, making it an attractive prospect for those seeking to hide their large sums of dirty cash.
26 June 2017 saw the introduction of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLR 2017). Within the regulations there are specific obligations for estate agents, no doubt aimed at cracking down on criminals who seek to launder their money through the UK property market. Failure to adhere to regulations could result in the committing of a criminal offence.
As with other sectors coming within the umbrella of ‘relevant’ person for the purposes of the MLR 2017, the increased emphasis on a risk-based approach is aimed at ensuring that estate agents take a risk-based assessment when considering property purchases to
