Tag Archives: mlr 2017

Estate Agents & Money Laundering Regulations 2017 – New Requirements

hmrc anti-mponey laundering estate agent eabs

Hello fellow professional

From the 26th of June 2017, the new UK Money Laundering Regulations 2017 (“MLR17”) came into force placing new legal and regulatory requirements on Estate Agency Businesses (EABs).

It is my pleasure to announce that Compliance Consultant has created a solution to help EABs get up to speed and fully comply with the new rules.

The MLR17s are an amendment to the current legislation which has been enforced since 2007. ALL EABs must comply with these requirements which also bring into force a new statutory regulator which will regulate all EABs from both a financial crime and conduct perspective. Any EAB which fails to comply with the complex regulations will face financial and legal penalties from both a company and individual level.

Who Are We?

Compliance Consultant is a specialist Governance, Risk and Compliance firm, providing advice, support and guidance to regulated and non-regulated firms since 2000. We have a range of services tailored to support firms as they operate in regulated spaces. We work with Estate Agents, Payment Service Providers, Independent Financial Advisers, Consumer Credit Act companies, Banks and Stockbrokers. We have a range of solutions, designed for both large and small firms. Compliance Consultant embeds a risk-based strategic approach into its projects and operational decision-making, enabling our clients to be assured of sustainable success.

To sum up, there are new legal and regulatory requirements on Estate Agency Businesses (EABs). Any EAB which fails to comply with the complex regulations will face financial and legal penalties from both a company and individual level.

Find out if you are affected by clicking on this link and SIGN UP to our 5-day series of pdfs covering how, what, when, where and why.

 

http://www.complianceconsultant.org

Money Laundering Supervision for Estate Agents – Fees

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You must pay HM Revenue and Customs (HMRC) fees when you register for anti-money laundering supervision.

These are:

  • an application submission fee
  • a registration fee for each premises
  • an annual renewal fee for each premises
  • If you’re a money service business or a trust or company service provider you’ll also pay responsible person fees.
Sign Up For Our Information Service & Get Sent PDFs About How You Are Affected

Check Out Our Other Posts at

Who Must Register – Money Laundering Supervision for Estate Agents 
MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
MLR 2017 – Estate Agents – How It Will Affect You? Part 2 
You must pay a non-refundable application charge of £100 when you first apply to register for anti-money laundering supervision.

Premises fee
When you register you must pay £115 for each of the premises you include in your application.

Annual renewal fee
Towards the end of your registration year HMRC will send you an email telling you to log in to your account to renew your registration and pay your renewal fee.

The renewal fee is £115 for each premises shown on the application at the time of renewal.

HMRC may cancel your registration if you don’t pay your annual renewal fee on time.

Fit and proper test fee
If your business is a money service business or a trust or company service provider a fit and proper test will be included in your application to register with HMRC.

There’s a £100 fee for each responsible person the test is applied to.

How to pay the fees
You’ll pay your fees online when you first apply to register and when you renew your registration online. When you input details of your business, the online service will calculate how much you owe and let you pay the total amount due for each type of fee.

If you’ve not yet registered online
If you’re not registered online and need to pay your renewal fees or a fee for an additional nominated person, there’s a variety of ways you can make your payment.

Firms must have established risk and control self-assessment procedures in place.

How HMRC use the fees you pay
HMRC use the fees to:

provide the advice and guidance you need to meet your Money Laundering Regulations responsibilities
carry out checks to make sure businesses are doing all they need to under the regulations
work with other organisations, for example assisting the National Crime Agency with prosecutions

Professional Help Is Available

Compliance Consultant can help provide you with the tools you need to implement, train and embed the new rules, and we can move quickly, getting your firm and your people up to speed in a short space of time, including training and awareness.

Call us today on 0207 097 1434 or

Get Our Solution

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mlr2017solution@complianceconsultant.org 

Sign Up For Our Information Service & Get Sent PDFs About How You Are Affected

Check Out Our Other Posts at

Who Must Register – Money Laundering Supervision for Estate Agents 
MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
MLR 2017 – Estate Agents – How It Will Affect You? Part 2 

MLR 2017 – Estate Agents – How It Will Affect You? Part 2

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2017-money-laundering-estate-agents-hmrc-reuglations

In This Second Part Of “Money Laundering – Estate Agents” We Finish Off How You Will Be Impacted

Part 5 – Beneficial ownership information

This section applies to bodies corporate and to trustees. It requires corporate bodies to provide detailed information to a relevant person when taking part in a relevant transaction with a relevant person (regulation 42) and requires trustees to inform the relevant person of their status and to provide information to them, and to law enforcement authorities (regulation 43). The trustee is under additional requirements to hold certain information and provide information to the Commissioners for Her Majesty’s Revenue and Customs (” the Commissioners”) in certain circumstances. The Commissioners are under a requirement to hold the information that has been received from the trustee in a register (regulation 44).

Firms must have established risk and control self-assessment procedures in place.

Sign Up For Our Information Service & Get Sent PDFs About How You Are Affected

Check Out Our Other Posts at

Who Must Register – Money Laundering Supervision for Estate Agents 
MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
Money Laundering Supervision for Estate Agents – Fees

Part 6 – Money laundering and terrorist financing: supervision and registration

This section makes provision in regard to supervisory authorities and registration of relevant persons. It states that supervisory authorities are subject to a duty to cooperate with other supervisory authorities, the Treasury and law enforcement authorities and a duty to collect information and facts. Provision is created for the situations in which a supervisory authority may disclose information it holds for supervisory purposes. Regulations 52 to 59 require the Financial Conduct Authority and the Commissioners to maintain registers of certain relevant persons, and impose corresponding requirements on relevant persons to request registration. The FCA and the Commissioners have powers to suspend or cancel the registration of a relevant person in certain circumstances.

Part 7 – Transfer of funds (information on the payer) regulations

This section lays out the supervisory authorities for a payment service provider and the duties of the supervisory authorities. There are only two supervisory authorities for payment service providers: the FCA and the Commissioners.

Part 8 – Information and investigation

This section gives supervisory authorities information gathering powers (regulations 64 to 67), gives the FCA and the Commissioners further investigatory powers (regulations 68 to 69) and makes provision for the scenario in which these powers may be exercised (regulations 70 to 72).

SUPERVISORY OVERSIGHT
HMRC has increased the size of its supervisory teams for Estate Agents and stated that it will be carrying out an increased number of supervisory visits. It is likely that we will see a significantly greater level of intervention and enforcement after the implementation of MLR 2017. Now is the moment in order to get your ship in order.

Part 9 – Enforcement

This section identifies “relevant requirements” for the purpose of these Regulations and gives the FCA and the Commissioners powers to impose civil penalties on anyone who has contravened a relevant requirement. Regulations 83 to 89 provide for criminal offences where a relevant person has contravened a relevant requirement; prejudiced an investigation or disclosed false or misleading information to the supervisory authorities and make provision in regard to criminal proceedings.

BE WARNED
This section therefore does not impose additional requirements or make changes to the operational nature of what you are doing, but all EABs should take heed of the forewarning that regulators are getting tough on non-compliance and failings.

Part 10 – Appeals

This section provides for an appeal from a decision by the FCA under these Regulations (regulation 90), and for reviews and appeals in connection with decisions of the Commissioners (regulations 91 to 97).

Part 11 – Miscellaneous provisionshmrc-estate-agent-mlr 2017-mld4-gdpr-regulation-mapping

Among other things ensures that charges or penalties imposed by the FCA or the Commissioners may be recovered as a debt in civil courtroom proceedings (regulation 98), ensures that the FCA and Commissioners have the capacity to recuperate the costs of their supervision or enforcement action (regulation 99) and establishes obligations on various public authorities to disclose any suspicions they may have or money laundering or terrorist financing (regulation 100).

Firms must have established risk and control self-assessment procedures in place.

CONCLUSION
The new money laundering regulations represent a substantial change to the way all firms must manage the potential of financial crime. What we see in this version of the regulations has produced significant changes and in this accelerated time-frame requires firms to be proactive.

What should you do?
HM Treasury has left little time for firms to acclimatise to the new regulations and with the June deadline fast approaching, firms must act now to ensure they understand and adopt the new rules in time.

Compliance Consultant can help provide you with the tools you need to implement, train and embed the new rules, and we can move quickly, getting your firm and your people up to speed in a short space of time, including training and awareness.

Call us today on 0207 097 1434 or

Get Our Solution

money laundering regulations-what is money laundering-money laundering 2017-hmrc

Sign Up For Our Information Service & Get Sent PDFs About How You Are Affected

Check Out Our Other Posts at

Who Must Register – Money Laundering Supervision for Estate Agents 
MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
Money Laundering Supervision for Estate Agents – Fees

Who Must Register – Money Laundering Supervision for Estate Agents

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The New Money Laundering Regulations 2017 are due to be effected from 26th June 2017… Are You Registered?

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Who must register
You must register with HMRC if your business carries out any activity defined as estate agency work.

This includes things like:

  • sending out property details and arranging viewings
  • offering personal advice to potential sellers or buyers
  • answering questions from potential sellers or buyers
  • passing on details to customers

Businesses that must register include:

  • high street residential estate agencies
  • commercial estate agencies
  • property or land auctioneers
  • land agents
    relocation agents, property finders, private acquisitions specialists
  • business brokers or transfer agents brokering the sales or transfer of client businesses to third parties
  • a solicitor’s property centre in Scotland

Sign Up For Our Information Service & Get Sent PDFs About How You Are Affected

Check Out Our Other Posts at

MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
MLR 2017 – Estate Agents – How It Will Affect You? Part 2 
Money Laundering Supervision for Estate Agents – Fees

You don’t need to register if you’re:

  • a lettings agent only carrying out lettings work
  • an auctioneer already registered with HMRC as a high value dealer
  • publishing adverts or distributing information, for example in a newspaper
  • an intermediary, like an internet property portal for private sales, allowing private sellers to advertise their properties and letting sellers and buyers to contact each other (but only if you do nothing else covered by the general definition of estate agency work)
  • a solicitor carrying on estate agency work as part of that practice as a solicitor, and not as a separate business
    An estate agency business may be regulated by the Financial Conduct Authority (FCA) for another purpose, for example because they provide consumer finance or hire purchase services. In this situation HMRC and the FCA will consider the possibility of a single supervisor overseeing the anti-money laundering arrangements. Supervision for individual businesses will be looked at on a case by case basis.
  • If you’re an appointed representative of a business that’s authorised by the FCA, then the FCA won’t be your supervisor and you must register with HMRC.

estate agent-hmrc-fines-aml-money-laundering-how-to-help-fcaAdditional guidance
HMRC has published guidance for estate agency businesses on how to comply with their obligations under the money laundering regulations and related legislation.

The guidance explains what businesses must do to protect themselves from the risks of money laundering and terrorist financing and how to report suspicious activity.

What happens if you don’t register
You may receive a penalty if you don’t register a relevant business. This includes carrying on business as an estate agent:

  • without being registered
  • after your registration has been cancelled

The amount of the penalty will depend on each individual case. They will take into consideration:

  • whether you told HMRC that you’re not registered or HMRC has discovered it
  • your reasons for not registering
  • whether you have had any previous warning or penalties
  • They may also take other factors into consideration.

When and how to register
You must register with HMRC before carrying on any activity as an estate agency business and pay the necessary fees.

Apply to register with HMRC.

Annual renewal
At the end of each registration period we’ll send you a renewal notice inviting you to renew your registration by paying the annual fee on all your listed premises. If you don’t need your registration to continue then you should notify HMRC.

If you don’t pay the correct renewal fee then HMRC may terminate your registration and remove your business from its anti-money laundering register.

Don’t Forget: Firms must have established risk and control self-assessment procedures in place.

Compliance Consultant can help provide you with the tools you need to implement, train and embed the new rules, and we can move quickly, getting your firm and your people up to speed in a short space of time, including training and awareness.

Call us today on 0207 097 1434 or

Get Our Solution

money laundering regulations-what is money laundering-money laundering 2017-hmrc

SIGN UP For Our Information Service & GET SENT PDFS About How You Are Affected

Check Out Our Other Posts at

MLR 2017 – Estate Agents – How It Will Affect You? Part 1 
MLR 2017 – Estate Agents – How It Will Affect You? Part 2 
Money Laundering Supervision for Estate Agents – Fees