The 10 June 2021 UK government deadline by which letting agents and the art market must register with HMRC to remain anti-money laundering (AML) compliant has now passed.
Your business could now be inspected by the HMRC at short notice. Failure to comply could put your business at serious financial risk.
Will this impact you and your business? Find out what these means for the art market and lettings industry below.
What are your legal obligations?
From 10 June any letting agent (residential or commercial) renting properties at or above 10,000 EUR, or equivalent currency – currently £8,600 per month – will be impacted.
Art Market Participants (AMP)
From 10 June any AMP involved in the sale or purchase of works of art priced at or above 10,000 Euros or its equivalent currency – currently £8,600 per month – will be impacted.
“The registration process goes far beyond simply letting HMRC know of a company’s existence. There are clearly defined procedures and documents that need to be put in place well in advance of the deadline and businesses must act now if they are to be ready in time.”
Jerry Walters, MICA Dip. AML/CTF
Managing Director, FCS Compliance
The Fifth Money Laundering Directive which came into effect in January 2020, saw letting agents fall in line with selling agents. While the onset of Covid saw the deadline for registration pushed back by a further 18 months, letting agents should be compliant today and have been so since January last year.
By the 10 June letting agents must have:
- A comprehensive AML policy and procedure document in place. This outlines in detail the AML processes a business adheres to and includes – the undertaking of customer due diligence (CDD); the roles and responsibilities of staff and the legislation that the business operates under.
- Undertaken an AML Risk Assessment and ensured that all frontline staff have received a robust level of training applicable to their role within the business.
Not only does the legislation mean identifying the owner/landlord of the property being let, but tenants come under greater scrutiny too. One of the key issues identified in the government’s recently published UK AML National Risk Assessment report was the use of organised crime groups to acquire a property, potentially let it out for criminal activity and launder the proceeds.
The ramifications of not being prepared or compliant are serious and could result in an onerous fine or even worse the long-term reputational damage of a business.
Find out how we can help lettings agents meet their legal obligations and remove the heavy burden of AML compliance.
The Fifth Money Laundering Directive which came into force in January 2020, saw the art world fall into line with other AML regulated sectors such as property and law. While the onset of Covid saw the deadline for registration pushed back by a further 18 months, AMPs should be compliant today and have been so since January last year.
By the 10 June 2021 AMPs must:
- Have a comprehensive AML policy and procedure document in place
- Ensure all frontline staff have received recognised and robust AML training
- Have carried out a firm-wide AML risk assessment
- Engage the services of external AML compliance consultants
- Register with the National Crime Agency (not a legal requirement but considered by HMRC as best practice).
How can we help?
FCS Compliance is an established specialist in the provision of AML compliance, consultancy and training for all businesses covering by the Money Laundering (ML), Terrorist Financing and Transfer of Funds Regulations 2017 – including sales and lettings estate agents, AMPs, property auctioneers and high-value dealers.
Our reputable services are used and recognised by leading organisations and industry associations that demand the very highest standards.
Let us take the heavy burden of AML compliance off your shoulders, contact us to find out more.
Services at a glance
- Robust CPD-Certified AML training courses
- AML Audits
- Policies & Procedures
- Risk Assessments
Additional services that ensure compliance
GET IN TOUCH
Let us help. Delivering certainty in AML compliance, FCS can help you meet your legal obligations and take the burden off your shoulders.
Complete the form and a member of our experienced team will be in touch with you very shortly. Alternatively, call Georgie Tarry, Senior Account Manager at FCS Compliance today on 0330 043 2682 to find out more.