Letting Agency Anti-Money Laundering (AML)

Anti-Money Laundering (AML) procedures for letting agents are crucial for ensuring compliance with regulations and preventing illicit financial activities within the real estate sector. These Letting Agency Anti-Money Laundering (AML) templates can be used to help letting agents detect and prevent money laundering activities, maintain regulatory compliance and protect the business from legal and reputational risk. It's important that the templates are used to tailor AML procedures to the specific business activities of the letting agency. These Letting Agency Anti-Money Laundering (AML) documents are for use by residential lettings and property management agencies that deal with high value lettings at a rent which during at least part of that period is, or is equivalent to, a monthly rent of 10,000 euros or more.

Under The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (‘the Regulations’) letting agents dealing with high value lets are required to comply with the Regulations or potentially face civil penalties or criminal prosecution. Senior managers and nominated officers can also be found personally liable for a breach of the Regulations.

As a letting agent, if you fall within the following definition, you will need to be registered with HM Revenue & Customs and, as a regulated business you must put in place a number of policies, controls and procedures to anticipate and prevent your business being used by criminals to launder money and fund terrorism.

“Letting agent” as defined under Section 13 of the 2019 Regulations means a firm or sole practitioner who, or whose employees, carry out letting agency work, when carrying out such work.

“letting agency work” means work:

(a) consisting of things done in response to instructions received from:

(i) a prospective landlord seeking to find another person to whom to let land/property, or

(ii) a person prospective tenant seeking to find land/property to rent, and

(b) where an agreement is concluded for the letting of land/property:

(i) for a term of a month or more, and

(ii) at a rent which during at least part of the term is, or is equivalent to, a monthly rent of 10,000 Euros or more.

If the agreement does not make clear the term of the agreement, it is best practice to carry out customer due diligence to ensure there is no breach of the requirements under the 2019 Regulations.

There is a wide range of templates which can be used to navigate the anti-money laundering requirements and include ettings Agency Firm Wide Risk Assessment, a Lettings Agency Anti-Money Laundering Policy and a Customer Identification Form and Risk Assessment Form.

The anti-money laundering templates are an EXAMPLE ONLY and are intended to be a starting point for agencies to implement the requirements set out in the legislation and guidance as every business is different. They can be tailored to suit your own business. The templates must be read alongside the relevant money laundering regulations and specific HM Revenue and Customs guidance. Professional advice should be taken on how to edit or adapt these templates in accordance with the relevant legislation and guidance,.

HMRC has produced specific guidance for letting agents on money laundering supervision which provides more details and which is regularly updated. Estate and letting agency business guidance for money laundering supervision - GOV.UK (www.gov.uk).

The documents are constructed in Word format, and can be customised to meet your requirements. Please click on the links below to download.

For use in England and Wales only.

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