Money laundering is a major problem within the property sector and a committee of influential MPs have condemned the inadequate processes in place to effectively tackle the problem in a recent Guardian article.
MPs cited the report by Transparency International, that claimed at least £100bn was being laundered through the UK every year, and even more astonishingly that only 335 out of 1.2m property transactions last year were deemed to be suspicious by law enforcement officials.
The committee said Estate Agents must start undertaking appropriate due diligence on clients and making reports to the National Crime Agency’s suspicious activity reporting regime.
It is clear that the property industry needs to start taking proactive steps to minimise the risk of money laundering activity. Estate Agents want to protect, indeed enhance, their reputation in the highly competitive property market. Forward-thinking firms are introducing best practice fraud reduction and due diligence solutions, in recognition that proactive efforts to reduce fraudulent and money laundering activity will improve their market reputation.
At Contego we help forward-thinking firms to comply with Money Laundering Regulation. Some of the largest UK property firms rely on Contego to help them comply with Money Laundering Regulation, by undertaking AML checks on house vendors and due diligence on landlords and buyers. Additionally, we help the letting industry comply with the recent introduction of the Right to Rent requirements for checking tenants. We do this by providing real-time checks on people, companies and ID Documents.
If you would like to learn more on how Contego can help you comply with money laundering and immigration legislation please contact us today at email@example.com or call +44 (0) 1235 375 000.
The committee said letting agents must start undertaking appropriate due diligence on clients and making reports to the NCA’s suspicious activity reporting regime. Vaz said the NCA’s system was so overburdened that it was “a futile and impotent weapon in the global fight against criminal financing, with no indication from the Home Office as to when a new state-of-the-art system will be purchased”.