Agency trade body backs AML overhaul

Propertymark has given its backing to simplifying how firms are regulated under anti-money laundering (AML) rules.

The Treasury is currently consulting on four possible new models for AML supervision.

Estate and lettings agents currently fall under the remit of HMRC for AML purposes but other professionals they work with such as conveyancers may be supervised differently such as through their professional bodies.

The Treasury has proposed the creation of a Single Professional Services Supervisor (SPSS) in the legal and accountancy sectors, that could include estate and lettings agents.

This could still be supervised by HMRC, the Treasury said.

The Treasury consultation said: “The inclusion of estate agents in the scope of an SPSS could lead to increased supervisory effectiveness, particularly through improving system coordination. 

“Currently, conveyancing professionals are supervised by legal professional body supervisors and would fall within the remit of an SPSS. 

“There could be opportunities for improvements in understanding of risk in the real estate sector through placing conveyancing professionals and agents under a single supervisor. 
“This should allow a better appreciation of trends and risks in the property market, and improved identification of breaches.”

Commenting on the proposals, Timothy Douglas, head of policy and campaigns at Propertymark, said: “Propertymark has long argued for the consolidation of supervision, whilst promoting the role of professional bodies as supervisors because they understand the sectors they work in and can gather information about developing risks. 

“To this end, the Office for Professional Body Anti-Money Laundering Supervision could play a greater role in facilitating and reporting on the exchange of information between supervisors within and across different sectors.

“However, fundamental to any effective supervision regime is enforcement and reporting to act as a greater deterrent against money laundering and criminal activity. We will be responding to this consultation to ensure that any reforms are adequate, work for our members and reduce economic crime in the property sector.”