Money Laundering Terrorist Financing and Transfer of funds (Information on the Payer)Regulations 2017
The Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 On 26th June 2017, this Act came into force. They implement the EU’s 4th Directive on Money Laundering (often called 4MLD), which replaces the Money Laundering Regulations of 2007 and they take a far more risk-based approach.
The Regulations apply to many businesses including:
- Estate agents, which includes those with a lettings department;
- Credit institutions;
- Financial institutions;
- Tax advisors.
They do not however apply to those engaging in financial activity on a very occasional basis, with a turnover of less than £100,000.
Criminals use money laundering to clean money and disguise any obvious links to criminal activity and in the property sector laundering it can take many forms which include:
- Buying a property using the proceeds of crime and selling it on to give the criminal a legitimate source of funds;
- Letting agents undertaking the sale of leases for a premium;
- Paying a large deposit and then reclaiming it later.