Estate agents are “a joke” when it comes to reporting money laundering suspicions, a lawyer has said.
Barrister Jonathan Fisher QC made his remarks to 300 solicitors at the Law Society’s anti-money laundering and financial crime conference.
Donald Toon, director of economic crime command at the National Crime Agency, raised the subject of solicitors’ involvement in money laundering.
He said most solicitors were honest but that criminals required “witting or unwitting help” from professionals.
Fisher agreed that most solicitors were honest, but said that some were careless, a few stupid and “even fewer are dishonest”.
He went on: “Accountants make very few reports, estate agents are a joke and the banks turn a blind eye and are careless.”
Fisher’s comments drew laughter from delegates, but when one accused Toon of unfairly picking on solicitors, Toon said: “You are happy to laugh at estate agents and banks, but get prickly at the merest hint of criticism of yourselves.”
Comments (13)
Not wishing to offend anyone but while agreeing with MLR is being forced onto estate agents who in general are being asked to do a job they are not best suited to do, it cannot be forgotten the lead story is that our industry in compliance appears to be a joke. We might not like it but we are obliged to comply with the legislation ……… The main UK legislation covering anti-money laundering and terrorist financing is:
• Proceeds of Crime Act 2002;
• Terrorism Act 2000;
• Money Laundering Regulations 2007.
The Proceeds of Crime Act sets out the primary offences related to money laundering. It would be worth your while reading up on the responsibility your are being asked to do (details freely available on the web or contact HMRC) ……. to quote: "failing to comply with the regulations may incur unlimited fines and/or a prison term of up to two years, or civil financial penalties". And of course you are all registered with HMRC!
Sorry woodentop whats the point? – I don't think anybody is saying they do not do it, the opposite even. We all say we do it just do not see the point as estate agents why we do it! We do not handle clients monies, We do not lawfully transfer the ownership of property, We do not lend money to either party. If the government require us to do it we will even if there is very little point to it! – Letting agents must also check to see if a tenant has the right to reside in the UK to me that's bonkers!
There are many agents who are not doing it appears to be the lead story and my experience is some don't and some don't want to for all sorts of reasons. As for the not seeing the point, well anyone who sells/buys/rents properties IS involved in a practice which is rife with ML and we are at the coal face and in a better position to spot irregularities and suspicious activity not just centred around identity and for that reason it should be no surprise that we are roped into the regulations, even if we do not like it. Anyone who reads the HMRC guidance will understand much better.
Thanks Woodentop I think we do understand it (and comply with it) just do not agree with it. As for many agents not doing it, who? if you know them report them, will make competition easier in your area.
In fairness to agents as observer reporters of ML the systems in place by government are today not well deployed. The big lettings sector are also not catered for which is a bigger threat as money in lettings is easier to lose
This is really harsh…..People who ARE money laundering will show the LEAST signs of criminal behaviour out of everyone we deal with. Also how many money laundering officers in larger chains of estate agents really want to file reports when they know, if the central agency decides to prosecute, they will have to face potential terror organisations in court. By all means have agents check identities, but that is about all we should be expected to do.
The 'joke' remains that we never see a penny of the money in a sales transaction so really have limited scope on laundering- luckily for the crooks – they have specialists to help. We call them 'Lawyers'. 😉
As a similar poster, we do an electronic check on purchasers and sellers – Why? to cover our backside and that's it! And to be fully honest these checks be it paper based or electronic can be faked. Banks and solicitors should take the brunt in verifying they lend them money and make it able to lawfully own the property all we do as agents is market it. I know a fair few solicitors, mortgage advisers and to be honest they are a lot less professional than a great number of estate agents I associate with.
For someone with so much to say and such an important strategic position Jonathon Fisher has displayed an almost comical ignorance of what is actually going on.
Both HMRC and CLG have the power to invoke simple legislation that would help identify laundering yet for some reason they are postively fearful of considering solutions from anyone outside the civil service.
If Mr Fisher wants to hear a joke, I have one to tell but it sure as heck isn't funny!!
I spend money with every instruction to electronically 'check' people – some I've known for ages – just so there is a paper trail. The actual legislation is the joke. Money launderers, drug dealers and terrorists are far too clever to be caught by Joe Muggins the estate agent being a good boy and propping up an industry that's grown up to facilitate this checking process. After we've done it the lawyers do it again. Whole process is not really fit for purpose.
The reporting processes are not clear to agents. There is also only a need to look into sellers and not buyers. Maybe the 'agents need to report' was to pick up on the few dishonest solicitors Mr Fisher indicates are out there
Actually that is not correct. Particular attention to the first two sentences may be worth looking into.
Very correct. I was at a Treasury meeting weeks ago.