Don’t get caught out: Important update on Money Laundering registrations and renewals

Don’t get caught out. Estate agents must have registered their business with HMRC to meet their obligations under Money Laundering Regulations.

A registration is required for every business entity and every trading branch must also be registered.

Failure to do so means the back registrations fees will need to be paid from the date you began trading and there will be a penalty for failing to register. The penalty is reduced if you voluntarily register late.

Did you also know that you must notify HMRC within 30 days of any changes, or risk a penalty?

Go to the HMRC website and complete form MLR RTC1 if any of the following have changed –

  • Change of company, address, trading name, phone number
  • Change of franchisee or agency status
  • Change of business partners
  • Any new or closed branches
  • Change in nominated officer

You may still be able to do this by printing off the form and posting it to HMRC, but I suspect this will not be for much longer.

Registration is an annual obligation and you would normally be sent a reminder, but it appears that recently the reminder notifications have not been sent out due to “computer system changes” at HMRC!

Agents who think they might have missed their renewal date should check immediately, because the lack of a reminder will not be a defence.

The renewal process is now online only and HMRC says it will take an agent about 45 minutes to complete the renewal application, but that is ridiculously optimistic.

It might take you 45 minutes to complete the online application process if you are a sole trader.

If your business is a limited company with a few directors or a limited liability partnership with multiple partners, it will take you 45 minutes to complete the process for each director.

Agents that have completed the application are saying that it is a long process with far more questions to answer than was previously the case.

One said it took him a full day to obtain all the information required from the directors and enter it on to the site. Another one said it would have been better if they had been told what information was required about their partners before they started the process, because they ended up having to go backwards and forwards to fill the information into the online form.

The form requires you to enter a range of personal information about the directors, including outlining evidence of the money laundering training they have undertaken.

If you have any compliance questions and you are a subscriber to Property Industry Eye, you can call David Beaumont on 0161 727 0798 and obtain free advice on our Compliance Helpline.

x

Email the story to a friend



4 Comments

  1. Chris Wood

    Now if you are a franchisee of a company that faithfully told you, that you were covered by their money-laundering membership and did not need to register your own firm or, individually belong to a redress scheme, ICO registration etc. you may feel slightly uncomfortable at the point in the form, just after where you declare how long you have had HMRC registration, where Her Majestys’ Revenue and Customs ask you to declare how long you have been trading. If the sums don’t add up, you could be receiving a knock on the door. You have been trading outside of the law.

    That individual redress membership that you were emphatically told you didn’t require and that the idiot didn’t know what he was talking about? I see many of you have now quietly acquired it.

    That data protection registration you were assured you wouldn’t need? It too, is a legal requirement.

    That six figure income you had dangled at the interview? How’s that going (after claw backs of course)?

    It’s not just consumers who were left unprotected and have been mislead, it was many good people looking to earn a living.

    Somewhere in space there is an orbiting member of the Anas family whose air supply may suddenly be giving them issues.

    Report
  2. CJR47

    How do on line agents comply with KYC  (Know Your Client) and money laundering etc…..regulations  or do they exploit a loophole that should/could be closed ?

    Report
  3. B6RKY

    And yet I received this yesterday from HMRC:

    Dear customer,

    We’ve launched the public beta HMRC Anti Money Laundering Supervision (AMLS) online service.
    You can now renew or register a new business through the AMLS service. The first time you use the service you’ll need to complete the whole application. After that, your future renewals will be much quicker.
    Once you’ve applied you can sign in again to view your current status, update your information, renew your supervision or de-register.
    You don’t need to do anything now, we’ll contact you around a month before you’re due to renew.
      Yours sincerely
    Andrew Henderson
    HMRC Anti Money Laundering Supervision
    Customer Engagement Team

     

    Report
  4. Woodentop

    Praises to David Beaumont and EYE. I suspect that there are many agents who didn’t see the renewal date, used to waiting for that letter to arrive prompting them … but ….. “not been sent out due to “computer system changes” at HMRC!”

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.