Agents believe more action is needed on money laundering

News

01 July 2019

Only one in five estate agents thinks enough is being done by business and regulators to address the UK’s money laundering problem, according to a new report.

As a result, 80.4% believe that more work is needed. The findings in the report by LexisNexis Risk Solutions come despite the recent crackdown on money laundering by HMRC.

It says that a third of real estate respondents think their sector is most at risk of being targeted by criminals for money laundering, while one in seven (13.7%) respondents think the UK’s regulatory framework is “not effective” in driving businesses to tackle money laundering.

Other findings include:

■ Almost half (45.1%) believe complacency to be the biggest internal barrier to preventing money laundering.

■ Only a quarter (25.3%) of estate agencies’ anti-money laundering compliance budgets are spent on training – the lowest of all sectors surveyed (and increasingly worrying, given the rate at which money launderers are choosing to launder funds through UK properties).

■ A third (33.3%) of estate agents think that tougher penalties on firms and individuals would be the most effective way to improve the fight against financial crime.

Commenting on the report’s findings, Michael Harris, director financial crime compliance and reputational risk at LexisNexis Risk Solutions, said: “Estate agents don’t need more regulation to tackle dirty money in the property sector – it’s internal issues that are the problem.

“The report shows that complacency is clearly an issue, but it goes beyond that. Estate agents, regardless of their size or location, need to understand the risks posed by financial criminals and take steps to train relevant personnel to ensure they have the skills and knowledge to spot and report any suspicious activity.

“We have already seen HMRC cracking down on estate agents for money laundering prevention failures – and this is likely to continue. Estate agents must make a commitment and get serious about tackling the issue, before the risks of non-compliance get even higher.”

Further in-depth analysis of the report’s findings will follow later this week.

To send feedback, e-mail jess.harrold@egi.co.uk or tweet @estatesgazette

Money laundering

Only one in five estate agents thinks enough is being done by business and regulators to address the UK’s money laundering problem, according to a new report. As a result, 80.4% believe that more work is needed. The findings in the report by LexisNexis Risk Solutions come despite the recent crackdown on money laundering by HMRC. It says that a third of real estate respondents think their sector is most at risk of being targeted by criminals for money laundering, while one in seven (13.7%) respondents think the UK’s regulatory framework is “not effective” in driving businesses to tackle money laundering. Other findings include: ■ Almost half (45.1%) believe complacency to be the biggest internal barrier to preventing money laundering. ■ Only a quarter (25.3%) of estate agencies’ anti-money laundering compliance budgets are spent on training – the lowest of all sectors surveyed (and increasingly worrying, given the rate at which money launderers are choosing to launder funds through UK properties). ■ A third (33.3%) of estate agents think that tougher penalties on firms and individuals would be the most effective way to improve the fight against financial crime. Commenting on the report’s findings, Michael Harris, director financial crime compliance and reputational risk at LexisNexis Risk Solutions, said: “Estate agents don’t need more regulation to tackle dirty money in the property sector – it’s internal issues that are the problem. “The report shows that complacency is clearly an issue, but it goes beyond that. Estate agents, regardless of their size or location, need to understand the risks posed by financial criminals and take steps to train relevant personnel to ensure they have the skills and knowledge to spot and report any suspicious activity. “We have already seen HMRC cracking down on estate agents for money laundering prevention failures – and this is likely to continue. Estate agents must make a commitment and get serious about tackling the issue, before the risks of non-compliance get even higher.” Further in-depth analysis of the report’s findings will follow later this week. To send feedback, e-mail jess.harrold@egi.co.uk or tweet @estatesgazette