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Written by rosalind renshaw

The OFT is to clamp down with fines on estate agents who have failed to sign up to its money laundering register.

It has been illegal since January 31 this year to trade as an estate agent if the business has not registered.

However, while the OFT was cracking the whip with one hand, with the other it had not even begun to put penalties in place. At the time it warned of penalties being up to two years in prison and unlimited fines. In fact, the punishments now finally in place look decidedly watered down.

After the January 31 deadline – widely ignored by most agents –  a consultation about the penalties was launched in February and closed in May, with the OFT response to the consultation findings yet to be published. However, the OFT says its new “interim” policy has been designed in response to the consultation.

It has thus taken a full seven months to spell out what the OFT will do in the short to medium term about agents who have failed to register, at a cost of £115 per office.

As an interim policy, estate agents who have not registered will be given 21 days to apply, or to explain why they are exempt, before being fined.

Under the new Anti-Money Laundering Interim Penalties Policy, fines will start at £2,000 and increase by £1,000 for each additional unregistered premise.

The OFT says that a full penalties policy will be produced “in due course”.

Mario Tsavellas, OFT Director of Anti-Money Laundering, said: “Estate agents and certain credit lenders have an obligation to comply with statutory obligations under the Money Laundering Regulations 2007, which includes registration with the OFT. Where businesses choose to ignore OFT warnings and do not register, we will impose civil financial penalties.

“It is vital that the OFT continues to identify those who should register, so that the OFT can supervise them effectively and reduce the risk of money laundering and terrorist financing in these sectors.”

The number of agents who have not signed up to the OFT’s anti-money laundering register is unknown, but by March, only 5,684 applications for the register had been received.

Estate agents are widely angry about the need to register, having consistently pointed out that they do not handle money – unlike letting agents, who do not have to register with the OFT.

Information on registration, plus application forms, is available on the anti-money laundering page of the OFT’s website.

Comments

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    Oh Jonnie you are so clever......

    • 22 September 2010 11:43 AM
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    This is for Absolutely Abruzzo as at last I have a chance to get an explanation of something. Several years ago andd for 18 months my son worked in Italy and rented with others. Three times during that gap year (actually he worked damned hard in a boat yard) he moved and three times the deposit that I had stumped up for him was retained by the agent. No amount of discussion or attempted persuasion could convince the agent to part with one euro of it, and needless to say deposit protection doesn't exist there. Deposit protection racket more like. So can you confirm to me that it is a standard feature of the Italian lettings market that agents keep the deposit even if, as in my son's case, the property really is handed back in the (as usually claimed by all tenants) better condition than when the tenancy commenced? This is true ask my wife and two of the places were dumps with interesting safety decificiencies too.

    • 22 September 2010 10:18 AM
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    we have had the laws here for a few years now and have to keep a book of all clients and prove their provenance and their money transfers
    we also have to put all our registration details on our website vat number,registered office and registration details with the chamber of commerce
    funny to see it all happening in the UK, its just part of the world we live in here although it seems that many sites that work here in Abruzzo ignore all the legislation
    however Italy has a slow but sure approach to things, massive amounts of paper , so they will always call one day, its best to follow the rules here and keep within them..

    • 21 September 2010 11:36 AM
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    I attended a seminar on money laundering – it was rubbish – its all about spotting criminal activity, half way through I did nod off but after a coffee break I perked up a bit and remembered that years ago (in the days when terrorists were Irish) the local beat policeman used to call in from time to time and ask about empty houses, lock ups we may have let / known about and cash buyers in a hurry to complete then re sell…………………..now im pretty sure he was looking out for the same thing this lazy bit of red tape is trying too.

    • 20 September 2010 17:08 PM
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    Actually, they dont do anything about those who are!! They leave it to the TPO and say that they dont deal with individual complaints - unless you worked for Blue Peter!

    • 20 September 2010 16:55 PM
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    and yet the OFT do nothing about the number of agents who are not members of a redress scheme, dispite complaints.

    • 20 September 2010 16:38 PM
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    The Government should be done to raising money under false pretences. What has changed apart from expense? If a determined money launderer can hoodwink his bank and his lawyer, I doubt we provide much defence. Its just fundraising.

    • 20 September 2010 15:45 PM
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    Brian, I am not ignorant as you say. The point is that 'registration' such as this will not ever stop a determined money launderer. This measure just will not work - like many others thought up by the faceless ones.

    • 20 September 2010 15:39 PM
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    That's hardly a fair comment! I would be the first in the line to put my hand up and shout (and I often do....) if I spotted something wrong, particularly a terrorist type activity. But being forced to register and pay yet another fee will do nothing to improve my awareness or 'public duty' and I am sure the same will be said of many others!

    • 20 September 2010 14:42 PM
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    It isn't the amount of the fee.....which is about 15 minutes advice from my solicitor, but the continuous drip drip drip of senseless regulations, which are as ineffective as they are irritating. As has been said, very few of us handle money during sales transactions, so what on earth is the point?

    • 20 September 2010 13:45 PM
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    We are all part of a process the catch terrorist money and crime, its not handling cash, it its helping spot the deals that are wrong, such buying well over price or selling well below- that the tipping of part where we have a duty, the posts on here really demonstrate ignorance of what is trying to be achieved. OK why pay for the privilege? Will it happen otherwise? well clearly not without the penalties in place, we should do our bit even if a tad inconvenient. Remember the 7/7 London bombings and 9/11 its not gone away, bet no agent from Wotton Bassett anti posting here?

    • 20 September 2010 13:39 PM
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    Unnecessary regulation keeps the World going around. Without it, so many otherwise useless beings would be claiming Social Security benefits. Sadly, Estate Agencies are under continuing pressure to simply survive and this is just another nail in the industry's coffin. Bureaucrats don't understand the machinations of the Real World as they don't have to deal with it most of the time.

    • 20 September 2010 12:28 PM
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    I suggest you change agents if you're just interested in reporting them.

    • 20 September 2010 12:18 PM
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    Well, the ‘corporates’ (whatever defines a firm as corporate?) will come out of this okay as they have all signed up……….feels like another independent v corporate argument?

    …come on independents, outside for a scrap!! – its you lot letting the industry down again

    • 20 September 2010 12:05 PM
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    Once again a piece of mindless regulation for the majority of agents who handle very little in the way of finance (conveyancers do that). This should go the way of HIP's - now!
    Again I say where are the views of the 'trade' organisations such as NFoPP and RICS? Silent as usual, except to accept!

    • 20 September 2010 12:03 PM
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    Its not affording the fee its the principle. If you can afford to throw £115 away I'll catch it!

    • 20 September 2010 12:01 PM
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    You got a stay out of jail free card!
    Now can you see the irony in the term Office of Fair Trading!

    • 20 September 2010 11:58 AM
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    Devon Silver Fox has the right idea 2 years at HMP avoid the double dip and all is well OR you could licence - drive up your fees to what they should be rather than giving it all away and letting the likes of Isold at the door - I cannot believe how you are all just taking it up the proverbial - If i had my day again Id have Richard Rawlings holding seminars with ALL the local agents agreeing to at least try and get what you are all worth - If you cant afford this pitiful fee should you really be in business at all?

    There are only two ways to operate a business effectively increase your transactions/ volume (not very likely) or increase your average spend - this really is do or die for many of you now? I find this really very very sad and disturbing :(

    • 20 September 2010 11:58 AM
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    I how do I find out if my agent has registered? It may seem like garbage but if my agent is breaking the law, I want to know.

    • 20 September 2010 11:55 AM
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    Mario says he wants to "supervise effectively". Sorry you can't do that for £115 pa The FSA charge £5000 a year and still don't supervise effectively. All you get for £115 is a list, which is already avaialble from the ombudsman! Get real and get a proper job Mario!

    • 20 September 2010 11:53 AM
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    probably not.

    • 20 September 2010 11:51 AM
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    Actually, 2 years in prison sounds quite inviting. Three square meals a day. Should see me through the double-dip recession and I'm sure the staff could cope without me. I could write a best-seller about an estate agent driven mad by over-regulation, rendered bankrupt by endless requests for money from pointless bureaucratic quangos and finally committing suicide by strangling himself with yards of red tape lying around his office. Sounds like a best seller to me. But would it be in the fact or fiction section? Horror, comedy or tragedy??

    • 20 September 2010 11:22 AM
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    I actually did register before the deadline but have heard absolutely nothing since, I have no idea what I am getting for the money. Can anyone tell me?

    • 20 September 2010 10:51 AM
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    I've never quite understood why agents need to be registered - seems like just another reason to relieve us of some money :-(

    • 20 September 2010 10:50 AM
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    Could someone explain why agents need to be registered?

    • 20 September 2010 10:45 AM
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    Nice pic Tim!

    • 20 September 2010 10:33 AM
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    The only 'charge' should be for extortion. It is nothing less. Where are you on this, Messrs Cameron, Clegg, Pickles and Shapps?

    • 20 September 2010 10:33 AM
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    More Pigs In The Trough. Where will it end?

    • 20 September 2010 10:22 AM
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    It 'may' have more credibility were they not to charge for receiving your application, £115 for nothing is about £115 too much.

    • 20 September 2010 08:36 AM
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